Spirit Energy 76 to gain new drilling opportunities off Southeastern Louisiana
Sugar Land, Texas, December 11, 1997 -- Spirit Energy 76, Unocal Corporation's U.S. exploration and production unit, today announced the signing of a joint exploration agreement with Rozel Energy, L.L.C., covering approximately one million acres in state and federal waters off southeastern Louisiana. Rozel Energy, L.L.C., will generate prospects providing Spirit Energy 76 with drilling opportunities in the prolific hydrocarbon-rich area. Spirit Energy 76 would serve as operator and anticipates drilling the alliance's first well in 1998.
Under the agreement, Spirit Energy 76 would have a 50 percent interest in any projects undertaken by the alliance, while Rozel Energy, a Lafayette, Louisiana based company, would have a 25 percent interest. Transworld Exploration and Production Company would hold a 25 percent interest under a separate agreement with Rozel Energy. Specific terms of the agreements are not being disclosed.
"This alliance supports Spirit's strategy for growth in seeking out creative, aggressive approaches to access new drilling opportunities," said Ken Butler, general manager of onshore and shelf exploration.
Spirit Energy 76 is actively seeking equity trades, joint ventures, alliances and acquisitions that help promote growth in its core strategic areas - the Gulf of Mexico and Gulf Coast. The sale of its downstream assets earlier this year allowed Unocal to rechannel spending into higher return growth opportunities. The company's intensified focus on the U.S. Gulf is boosting projected capital investment in the Lower 48. Between 1998 and 2001, Spirit Energy 76's annual capital spending is projected to average over $500 million, an increase of nearly 70 percent over 1997 levels.
Spirit Energy 76 employs approximately 1,300 people and operates 300 offshore platforms and approximately 2,700 active wells in 355 fields.
Unocal is a leading global energy resource and project development company, with year end 1996 reserves of more than 9.8 trillion cubic feet of natural gas equivalent (1.6 billion barrels of oil equivalent) and major oil and gas exploration and production activities in Asia and the U.S. Gulf of Mexico. The company maintains twin headquarters in California and Malaysia, with major offices in Singapore, Jakarta, Bangkok and Sugar Land, Texas.
Forward-looking statements regarding exploration activities, estimates of drilling success and capital spending in this news release are based on assumptions concerning market, competitive, regulatory, environmental, operational and other considerations. Actual results could differ materially.
Updated: December 1997