Crediting a whole new set of economics, Nuevo Energy Co.reported late last week that it has made a new natural gasdiscovery in California. The Golden 1-21 shallow gas discovery wellis located in Kern County, about four miles from the prolific SouthBelridge and Elk Hills Fields.

The well was drilled to a depth of 6,055 feet and tested at astabilized rate of over 1 MMcf/d. Nuevo temporarily shut in thewell until the company can find a pipeline hook-up. With an 86%interest in the well, Nuevo is the operator of the 30,000-acre Areaof Mutual Interest in which the Golden 1-21 well is located.

“Given the current high demand and high prices for natural gasin California, this gas discovery is a good way to start off ourexploration program in California this year,” said Doug Foshee, CEOof Nuevo. “In 2001, our California exploration program focuses on aportfolio of prospects in several trends which target natural gasand lighter gravity oil. Currently, we plan to spud five of nineCalifornia exploration wells in the first half of the year.”

The California discovery is the company’s first success sincebringing on Phillip A. Gobe as COO. Gobe, who came from theposition of senior vice president for production for VastarResources, Inc., has the responsibility of managing Nuevo’sdomestic and international exploitation and exploration operationsand business development functions. Nuevo announced his arrivallate last month.

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