Kerr-McGee Corp. said Tuesday that its recent appraisal drilling has confirmed the Constitution and Hornet fields in the deepwater Gulf of Mexico, near other high quality oil and natural gas discoveries on the Green Canyon block.

The Oklahoma City-based independent said the Constitution is located in 5,000 feet of water on Green Canyon block 680, while the Hornet is in 3,850 feet on Green Canyon block 379. Both are 100% owned by Kerr-McGee.

“Our 2003 exploratory program is off to a good start, with the early success at Constitution and Hornet,” said CEO Luke R. Corbett. “Further appraisal work is ongoing to determine the full resource ranges and the optimum potential development solutions for these fields. This work will be part of our active Gulf of Mexico exploration program through the remainder of 2003.”

Discovery of the Constitution field was confirmed by the second successful well, located in a separate fault block. The pay sands are high quality reservoirs, with porosities of 25% to 30%, and greater than 30-degree API gravity oil. The initial well, drilled to a depth of 13,727 feet, encountered more than 100 feet of net oil pay in a shallow Plio-Pleistocene objective.

The second well, located approximately 4,000 feet northwest of the initial exploratory well and drilled to a depth of 15,213 feet, encountered approximately 375 feet of net oil pay in Plio-Pleistocene sands, primarily in deeper objectives not tested in the initial well. This well currently is being sidetracked down-dip, approximately 1,650 feet southwest, to test additional potential deeper reservoirs. An additional appraisal well is expected to be drilled to better define the aerial extent of the reservoirs.

The Hornet field was confirmed after an appraisal well encountered more than 275 feet of net pay in Plio-Pleistocene sands. This well currently is being sidetracked approximately 2,300 feet to the northwest into Green Canyon block 335 to better define the aerial extent of the reservoirs. High quality oil and gas reservoirs have been confirmed on both the northeast and northwest flank of a salt-supported feature, and porosities range from 23% to 30%.

Separately, Kerr-McGee participated in the RunfortheRoses exploratory well located on Green Canyon block 735, which the operator has plugged and abandoned. Kerr-McGee held a 50% interest in the prospect. Costs incurred on the well through March 31 will be included in the company’s first-quarter 2003 exploration expense, which is now estimated in the range of $140-145 million.

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