Texaco Press Release - Texaco and Statoil Announce Major Deepwater Oil Discovery Offshore Nigeria
Discovery Marks Second Success for Texaco in Nigerian Deepwater
FOR RELEASE: TUESDAY, MARCH 9, 1999.
HOUSTON, March 9 - Texaco and Statoil have announced a wildcat discovery on Offshore Prospecting Lease (OPL) Block 218, which is located in the deep waters approximately 70 miles offshore Nigeria in the central Niger Delta. Preliminary data indicates the reservoirs could contain up to several hundred million barrels of recoverable oil.
This discovery marks the second significant deepwater find announced by Texaco in less than two months. In January, Texaco and Famfa Oil Limited of Nigeria announced the Agbami-1 wildcat discovery on OPL Block 216. Appraisal drilling will commence in 1999 to ascertain the hydrocarbon potential of Agbami.
The OPL Block 218 is located approximately 50 miles east of OPL Block 216. The discovery well, Nnwa-1, was spudded on December 11, 1998, in 4,206 feet of water, and well operations were completed in February. The Nnwa-1 well encountered more than 310 net feet of pay in multiple oil zones from 8,700 feet to the total depth of 14,645 feet. Texaco holds a 46.15 percent interest in Block 218, with Statoil holding the balance and serving as operator. OPL 218 is operated under a production sharing contract with NNPC (Nigerian National Petroleum Corporation) signed in 1993.
"The Nnwa-1 discovery underscores the strength of Texaco's Nigerian exploration portfolio, and also is indicative of the high impact results we are achieving as part of our long-term production and reserve growth objectives," noted John J. O'Connor, Texaco President of Worldwide Exploration and Production. "We are encouraged by the preliminary results of the Nnwa-1 well. We will better understand the full extent of this discovery once further appraisal drilling is conducted."
Texaco is aggressively pursuing exploration opportunities in deepwater Nigeria and is currently the second largest net deepwater acreage holder with more than 1.6 million acres in five OPLs.
Texaco currently operates some 65,000 barrels of oil production per day on behalf of joint venture partners from offshore operations in the Pennington and adjacent fields through Texaco Overseas (Nigeria) Petroleum Company Unlimited
This press release contains forward-looking statements about recoverable oil in Nigeria OPL Block 218. Actual results may change based on changing business conditions. Among the factors which could cause such differences are crude oil and natural gas prices and potential failure to achieve expected production.
For a further discussion of additional factors that could cause actual results to materially differ from those in the forward-looking statements, please refer to the section entitled "Forward-Looking Statements" in Texaco's 1997 Annual Report on Form 10-K.
Updated: March 1999