EEX Corporation Completes Sidetrack Drilling Operations at Llano Prospect

EEX Corporation, a major oil and gas exploration and production company, has completed sidetrack drilling operations at the Llano prospect on Garden Banks Block 386 in the Gulf of Mexico. Analysis of logging data indicates the presence of hydrocarbon-bearing sands in the Lower Pliocene and Miocene aged sections, similar to those encountered by Shell Deepwater Development in the Auger Field, less than 15 miles away. The potential discovery is estimated to contain up to 220 million barrels of oil equivalent reserves.

Key Takeaways:

• EEX Corporation has completed sidetrack drilling operations at the Llano prospect, located on Garden Banks Block 386 in the Gulf of Mexico.
• Analysis of logging data indicates the presence of hydrocarbon-bearing sands in the Lower Pliocene and Miocene aged sections, similar to those encountered by Shell Deepwater Development in the Auger Field.
• The potential discovery is estimated to contain up to 220 million barrels of oil equivalent reserves.
• EEX is planning to move forward with confirmation drilling to evaluate the size of the discovery.
• Appraisal options include several wells to evaluate the Lower Pliocene and Miocene reservoirs.
• The prospective Diamond Offshore "Ocean Voyager" semi-submersible drilling rig is expected to return to the Garden Banks area to begin appraisal drilling this fall.
• EEX has a 30% interest in the Llano prospect and is the operator of the project, along with partners Enterprise Oil Gulf of Mexico, PanCanadian Gulf of Mexico, and Mobil Exploration and Producing U.S.
• The company has two other deepwater prospects drilling and expects to have a fourth prospect drilling in July.
• EEX is also exploring other opportunities in the Gulf of Mexico, including the Sheba, Elvis, Gamera, and Viosca Knoll prospects.
• The offshore drilling efforts are part of EEX's international expansion strategy.

Statistics:

• The Llano prospect is located on Garden Banks Block 386 in the Gulf of Mexico.
• The potential discovery is estimated to contain up to 220 million barrels of oil equivalent reserves.
• The drilling operation is expected to begin with a target depth of 25,000 feet.
• The EEX operated prospect has partners Enterprise Oil Gulf of Mexico (30%), PanCanadian Gulf of Mexico (20%), and Mobil Exploration and Producing U.S. (20%).
• The company has a 30% interest in the Llano prospect and is the operator of the project.

Sources:

• PRNewswire, June 22, 1998
• EEX Corporation press release, June 22, 1998
• EEX Corporation Website, http://www.eex.com