Texaco Press Release - Texaco Updates Drilling Successes in Gulf of Mexico and Coastal Louisiana
FOR RELEASE: TUESDAY, AUGUST 7, 2001
NEW ORLEANS, August 7 - Texaco announced today that additional oil and gas reserves have been identified through further drilling in areas of the Gulf of Mexico (GOM) and coastal Louisiana where the company announced discoveries in late 2000 and early 2001.
Commenting on drilling results for the first six months of 2001, Robert Lane, Texaco's New Orleans Business Unit (NOBU) Vice President said, "The GOM and coastal Louisiana continues to offer significant potential for development. Today's exploration, drilling and production technologies increase our success in finding new reserves and the infrastructure in place in the Gulf allows us to bring on new production quickly to create even greater value. Texaco's NOBU has continued to demonstrate its ability to leverage these advantages."
The first half 2001 activity has been focused in a number of fields, most notably Cyrus, North Tern Deep and Petronius in the Gulf of Mexico and Vermilion Bay in coastal Louisiana.
Texaco announced a discovery at High Island (HI) Block A-582, in January of this year. Since then, two additional successful wells have been drilled to further delineate the discovery. Located 300 miles southwest of New Orleans in over 400 feet of water, HI A-582 #6, encountered over 250 feet of pay in four sands. An additional well, HI A-582 #5 found another 50 feet of pay in two sands. Texaco is the operator with a 47 percent interest. Devon Energy Corporation holds a 37 percent interest and the remaining interest is held by six other parties. An additional well is planned for Cyrus this year and the co-owners plan to install a new platform next year. First production is expected in the second half of 2002.
North Tern Deep
Texaco has a 43.75 percent interest in the McMoRan Exploration Co. (NYSE: MMR) operated Eugene Island 193 C-1 well. Discovered in December 2000, the well has just recently come on line with production rates of 50 million cubic feet of gas per day and 1,616 barrels of oil per day. Located in 295 feet of water approximately 50 miles off the Louisiana coast, the initial well encountered two productive sands with approximately 200 feet of total pay. The discovery well is located in an area with existing infrastructure which allowed fast-tracked caisson design and flowline construction to bring the well on line quickly.
The Texaco and Marathon (owned 50-50, Texaco operated) deepwater Petronius platform is currently producing at a rate in excess of 60 thousand barrels of oil equivalent per day, 15,000 barrels per day above plan. A deepwater compliant tower located on Viosca Knoll Block 786 in over 1750 feet of water 130 miles southeast of New Orleans, Petronius is configured to accommodate a total of 21 wells. Currently, eight producing wells and three saltwater injection wells are in operation as drilling continues. All the wells drilled to date have shown pressure connectivity, proving extent of the reservoirs. Actual well data suggest the original estimated recoverable reserves of 100 million barrels of oil equivalent might be exceeded. A fourth injection well is currently being drilled and will penetrate deeper reservoirs to identify potential new oil and gas reserves.
In January of this year Texaco announced a discovery in The Vermilion Bay State Lease located in coastal Louisiana, approximately 110 miles southwest of New Orleans. Two additional wells have been drilled since the discovery well (Vermilion Bay State Lease 334 B#110). The State Lease 334 B #108 and B #113 development wells have encountered four Lower Miocene oil and gas reservoir sands with a total of 400 net feet of pay. The two offsets to the original discovery extend the trend up dip and to the east. The first two wells are currently producing at a rate of 4,500 barrels of oil equivalent per day and the third well is currently being completed. Further drilling is required to develop the potential in the area. Texaco holds a 100 percent interest.
Note: This press release contains a number of forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, statements made concerning Texaco's expected reserves, performance and financial results in future periods are based upon Texaco's current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.
The following factors known to Texaco, among others, could cause Texaco's actual results to differ materially from those described in the forward-looking statements: incorrect estimation of reserves and related assets; inaccurate scientific data; mechanical, chemical and technological failures; decreased demand for alternative fuels and other products; above or below-average product and technology demands; worldwide and industry economic conditions; higher costs, expenses and interest rates; the outcome of pending and future litigation and governmental proceedings; continued availability of financing; and strikes and other industrial disputes. In addition, you are encouraged to review Texaco's latest reports filed with the SEC, including, but not limited to, Texaco's Annual Report on Form 10-K filed with the SEC on March 26, 2001, which describes a number of additional risks and uncertainties that could cause actual results to vary materially from those listed in the forward-looking statements made in this press release.
The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Texaco may use certain terms in this press release, such as estimated barrels and recoverable barrels of oil, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the Supplemental Oil and Gas Information disclosure in our 2000 Annual Report on Form 10-K filed with the SEC on March 26, 2001, File No. 1-27, available from us at:
2000 Westchester Avenue
White Plains NY 10650,
You may also obtain this form from the SEC by calling 1-800-SEC-0330.
Updated: August 2001