Unocal Touts 'Very Significant' Gulf Discovery
Unocal Corp.'s Spirit Energy 76 unit announced a "very
significant" oil and gas discovery on the Mad Dog prospect in the
Gulf of Mexico deep-water Green Canyon block 826. The well
encountered 300 net feet of hydrocarbons, mainly crude oil. A
spokeswoman said more specific information about how much of Mad
Dog reserves might be gas is not yet available.
Spirit Energy holds a 25% interest in the 2-1/2-block drilling
unit that encompasses most of the Mad Dog structure. Based on
available data, the company believes its net resource potential for
the Mad Dog drilling unit is likely in excess of 100 MMBoe and
possibly as high as 200 MMBoe.
Although further appraisal drilling is required to determine the
extent of the discovery, Spirit Energy believes the gross resource
potential within the drilling unit to be in excess of 400 MMBoe and
as much as 800 MMBoe. If the upper range of this initial resource
estimate is confirmed, Mad Dog could be one of the largest
discoveries yet announced in the Gulf of Mexico.
"Mad Dog is the second deepwater discovery we've announced this
year, and it signifies a major step toward our goal of adding
substantial value to the corporation through a successful deepwater
program in the Gulf of Mexico," said Unocal CEO Roger C. Beach. "We
began our Gulf of Mexico deep-water program from a standing start
in 1997 and have quickly delivered results as we built an extremely
attractive prospect inventory for continued future success."
David A. Johnson, Spirit Energy's vice president for
exploration, said the well likely represents the "trend opening"
discovery for the Eastern Fold Belt and Salt Canopy play that the
company was betting on when it acquired a considerable deepwater
acreage position in last year's Lease Sale 171. Unocal's deep-water
holdings contain several other major prospects and leads in this
trend that have geological characteristics similar to Mad Dog.
BP Amoco is the operator of the Mad Dog well with a 64% working
interest. BHP holds the remaining 11% interest. Spirit Energy 76
also said it reached an agreement with Conoco to acquire a 50%
working interest in the oil and gas lease covering Green Canyon
Block 562 (K2 prospect). The K2 prospect is just north of Mad Dog
on the same geologic trend.
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