Kerr-McGee makes Trinidad & Tobago acquisition

Offshore staff

(Trinidad&Tobago)- Kerr-McGee Oil & Gas Corp. announced recently that it has acquired a 25% stake in the southern part of block 2(c) Retained Exploration Area and a 30% interest in block 3(a) offshore Trinidad & Tobago. Kerr-McGee's COO Dave Hager calls the acquisition "an example of our creative business strategy."

This strategy includes a growing list of offshore assets in proven petroleum provinces and an expanding base of business partners. The block 2 (c) REA and block 3 (a) are adjacent to the Angostura field in depths ranging from 150 to 300 ft of water. BHP Billiton (39%) and Talisman (36%) are partners with Kerr-McGee in the block 2 (c) project, while the block 3 (a) includes BHP Billiton (30%), Talisman (30%) and Total (10%) as partners. BHP Billiton operates both blocks.

This acquisition is still pending the approval of the Ministry of Energy and Energy Industries. It is expected to be approved, and will increase Kerr-McGee's interests to more than 340,000 gross acres offshore Trinidad & Tobago.

The Trinidad & Tobago program is part of a larger drilling scheme by Kerr-McGee that includes a plan to drill four new-field wildcat wells within the next six months, two offshore Angola and two offshore Brazil.

10/26/05