Unocal's Spirit Energy 76 enhances Gulf of Mexico portfolio in OCS sale
Sugar Land, Texas, March 16, 2000 -- Spirit Energy 76, Unocal Corporation's U.S. Lower 48 exploration and production unit, today said that it is the apparent high bidder for interests in 6 Gulf of Mexico deepwater and 4 shelf blocks in OCS Lease Sale No. 175 conducted Wednesday by the U.S. Minerals Management Service (MMS).
The company exposed a total of approximately $14.5 million, with apparent high bids amounting to approximately $12.7 million (See chart for detailed bid information).
"We approached this lease sale as an opportunity to enhance our deepwater position in Walker Ridge with additional acreage that is on trend with our Mad Dog and K2 discoveries," said John T. Donohue, president of Spirit Energy 76. "On the shelf we pursued opportunities that will translate into near-term drill sites and provide quick turnaround to production. We are pleased with our results in both areas."
Prior to the sale, Spirit Energy had an exploratory portfolio of 312 blocks. The sale will bring Spirit's Gulf of Mexico exploratory portfolio to a total of 322 blocks, if all bids are approved by the MMS. Of that total, 224 are located in deep water; 98 are on the shelf.
In the Gulf of Mexico this year, Spirit expects to drill three exploration wells on deepwater prospects, along with more than 20 prospects on the shelf.
Spirit Energy 76, Unocal Corporation's U.S. Lower 48 exploration and production unit, has major operations onshore in Texas and Louisiana and on the Gulf of Mexico shelf, in addition to a significant presence in the Gulf of Mexico deepwater.
Unocal is one of the world's largest independent oil and gas exploration and production companies, with resource development, power plant and pipeline projects in Asia, the U.S. Gulf of Mexico region and Latin America.
Forward-looking statements regarding exploration activities and lease acquisitions in this news release are based on assumptions concerning market, operational, competitive, regulatory, environmental, and other considerations. Actual results could differ materially as a result of factors discussed in Unocal's 1999 Form 10-K report filed with the Securities and Exchange Commission.
Central Gulf of Mexico Lease Sale No. 175 - March 15, 2000
Apparent High Bids by Spirit Energy 76 (Unocal) - 100% W.I.
|Vermilion 85||$ 400,100|
|Eugene Island 129A||$ 451,100|
|Main Pass 239||$ 276,100|
|East Cameron 257||$ 531,100|
|Walker Ridge 98||$ 440,076|
|Walker Ridge 99||$ 450,076|
|Walker Ridge 142||$ 330,076|
|Walker Ridge 143||$ 340,076|
|Walker Ridge 723||$ 9,310,076|
|Green Canyon 949||$ 218,076|
|Total High Bids: 10||$12,746,856|
Updated: March 2000