press release

Texaco Press Release - Texaco, Braspetro and Famfa Report Preliminary Results


WHITE PLAINS, N.Y., June 13 - Texaco, Braspetro and Famfa Oil Limited of Nigeria, today announced the preliminary results of a wildcat drilled on OPL Block 216, which is located in deepwater approximately 70 miles offshore Nigeria in the central Niger Delta. The well, Ikija-1, tested an independent structure located approximately 13 miles southwest of the companies' previously announced Agbami discovery.

Ikija-1 spudded on January 7 in 6,066 feet of water, making it the deepest water depth well in Nigeria. It reached a total depth of 17,565 feet and was suspended on May 30.

Ikija-1 encountered 240 net feet of oil and gas in multiple zones between 11,000 feet and 15,750 feet. The well results will be incorporated into further geological and engineering studies to determine Ikija's commercial potential.

"The Ikija wildcat continues to advance Texaco's deepwater exploration program in Nigeria. We are encouraged by the preliminary results of this well and, while Ikija encompasses a different structure than Agbami, the two are in close proximity, which will be a factor as we continue to evaluate Ikija's commercial potential," said Dr. Bruce S. Appelbaum, Vice President of Texaco Inc. and President of Texaco Exploration.

Famfa, an independent Nigerian oil company, is operator of Ikija-1, with Texaco's wholly owned subsidiary, Star Deep Water Petroleum Limited serving as technical advisor. Ownership interests are defined by the terms of a deepwater production-sharing contract (PSC) between Texaco, Braspetro and Famfa. As technical advisor, Texaco currently holds an 80 percent contractor's interest subject to further provisions of the PSC. Petroleo Brasileiro Nigeria Limited, a wholly owned subsidiary of Braspetro, holds the remaining 20 percent contractor's interest.

Updated: June 2000