Kerr-McGee drills successful Brazil appraisal

Oct. 25, 2005
Kerr-McGee Oil and Gas Corp. announced recently a successful appraisal offshore Brazil in the BM-C-7 block of the Chinook field. Kerr-McGee owns a 50% working share in the 133,000-acre block, located in 350 ft of water and approximately 125 mi southeast of Rio de Janeiro.

Offshore staff

(Brazil)- Kerr-McGee Oil and Gas Corp. announced recently a successful appraisal offshore Brazil in the BM-C-7 block of the Chinook field. Kerr-McGee owns a 50% working share in the 133,000-acre block, located in 350 ft of water and approximately 125 mi southeast of Rio de Janeiro. EnCana subsidiary EnCanBrasil holds the remaining 50% and is the operator.

The 3-ENC-4-RJS appraisal well was drilled approximately 1.5 mi northeast from the discovery well, and reached a total depth of 7,692 ft. It encountered 80 ft of net pay in the Cretaceous Carapebus formation.

This appraisal well follows another successful test in September which was drilled 2.5 mi southwest of the discovery well and tested at rates of between 1,400 and 1,800 b/d of 14º API crude. Kerr-McGee COO Dave Hager said of the appraisal: "As a result of this penetration, we are increasing the estimated resource range of this field from the previous range of 100-200 MMbbl oil, to 150-250 MMbbl oil."

Kerr-McGee will expand its exploration activities in the next four years with the drilling of up to eight additional exploration wells in the Campos and Espirito Santo basins. These areas carry the potential for an additional 100 to 400 MMbbl oil. Kerr-McGee's total land interests offshore Brazil amount to 1.1 million gross acres.

10/25/05