ERT trades for Tiger

Offshore staff

(US, GoM)-Energy Resource Technology, Inc. (ERT), a wholly owned subsidiary of Cal Dive International, Inc. has acquired a 40% working interest in the Tiger discovery through an exchange with Deep Gulf Energy LP (DGE). Tiger is located in Green Canyon (GC) blocks 195/196 in 1,900 ft of water.

ERT traded a 15% working interest in the Bass Lite discovery located in Atwater Valley blocks 380/381/382/425/426 in 7,500 ft of water for the 40% interest in Tiger. In the transaction, each party reimbursed the other for sunk costs, resulting in an approximate $1 million payment to DGE.

The Tiger discovery contains proved undeveloped gas reserves in a Pliocene age sand discovered in 2003 with Well No. 1 in GC block 195. The Tiger field will be produced by a subsea tieback to a platform in Ewing Bank block 947. Cal Dive has contracted DGE to perform installation of the 20-mi tieback.

First production from Tiger is anticipated in mid-2006 at a gross rate of 40 MMcf/d. "Production from the Tiger field will be the first from the portfolio of deepwater development projects acquired in the last year, said Johnny Edwards, president of ERT. "This portfolio also includes Tulane, Devil's Island, Bass Lite and Telemark. The benefits of the trade are the diversification of risk, the generation of additional marine contracting work and early production, which will reduce capital expenditure and provide cash flow in 2006."

11/03/05