Offshore staff

(Brazil)-Kerr-McGee Oil & Gas Corp. has been successful in the test of the Chinook field in the BM-C-7 block offshore Brazil. The 3-ENC-3-RJS appraisal well, located 2.5 mi southwest of the discovery well drilled in April 2004, reached a depth of 7,650 ft and encountered 110 ft of net pay in the Cretaceous Carapebus formation.

The appraisal well tested at rates between 1,400 and 1,800 b/d during the 72-hour test period, but was limited by the capacity of the test equipment. Initial analysis of the test data indicates this vertical well is capable of producing at initial rates between 4,000 and 5,000 b/d with optimized production equipment, the company says.

Kerr-McGee estimates the Chinook field offers potential resources in the range of 100 to 200 MMbbl. The discovery well 1-ENC-1-RJS drilled to a depth of 7,884 ft and encountered 190 ft of net pay in the Cretaceous Carapebus formation.

Kerr-McGee owns a 50% working interest in the 133,000-acre BM-C-7 block, located in 350 ft of water, 125 mi southeast of Rio de Janeiro. EnCanBrasil holds the remaining 50% working interest and is the operator of the block.

Kerr-McGee expects to drill up to eight wells during the next four years in the Campos and Espirito Santo Basins offshore Brazil, with identified targets each carrying an estimated resource potential in the range of 100 to 400 MMbbl.

09/14/05