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Sable Rig Spuds First Production Well

Sable Rig Spuds First Production Well

Mobil said the Santa Fe Galaxy II jackup drilling rig has spudded its first production well at the Sable Offshore Energy Project (SOEP). The Galaxy II joins the Rowan Gorilla II rig, which has been drilling in the area since June. Construction on the $1.3 billion SOEP (Mobil share 50.8%), which began in January, is now well over one-third completed and on schedule to deliver gas to market by November 1999.

Sable gas will be delivered to the Maritime provinces in Canada and to markets in the Northeastern United States via the Maritimes and Northeast Pipeline (M&ampNP), a 600-mile line currently under construction. Approval to proceed with Phase II of M&ampNP was recently granted by the Maine Board of Environmental Protection.

Mobil has already sold almost 40% of its share of Sable gas and is seeking to increase gas production and sales from its acreage offshore Nova Scotia. As part of this effort, Mobil Canada is expanding its exploration position in the area and was recently awarded a 254,400-acre oil and gas exploration license (Mobil share 50%) on the promising Banquereau Bank area off Cape Breton, NS.

The license builds upon the 3.4 million-acre exploration position Mobil already holds offshore Nova Scotia. The Banquereau property is immediately adjacent to property already held by Mobil in the Laurentian Basin, an area between the Canadian provinces of Nova Scotia and Newfoundland.

Mobil has the largest energy portfolio in the Eastern Canada offshore oil and gas industry and leads in significant discoveries, reserves, production and active developments.

Joe Fisher, Houston

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