Upon completion of its much awaited drilling operations at itsdeepwater exploration well on the Dana Point prospect in the Gulfof Mexico, Unocal Corp. announced that its $36 million investmentin the $51 million well drilling project produced nothing but a dryhole.

The company said that even though the well reached its depthobjectives, and penetrated hydrocarbon zones, it does not appear tocontain commercial quantities of production. Unocal said it willtemporarily plug and abandon the well while it conducts a fullevaluation of existing well data.

“We remain enthusiastic about the potential of the remaininginventory of drilling prospects in the ultra-deepwater Gulf,despite the disappointing initial results at Dana Point,” said MikeBell, vice president of Unocal Deepwater USA.

The Dana Point well, which was drilled in 7,036 feet of water toa depth of 26,850 feet, took 119 days to complete from start tofinish. Unocal holds an 80% interest in Walker Ridge block 678 theblock that contains the Dana Point well. The company included itscosts related to the well in its revised fourth quarter 2000earnings estimate released on Jan. 4. Ocean Energy holds theremaining 20% interest.

Unocal said it will now focus on the next well in its 2001drilling schedule. It plans to move the Discover Spirit Drillshipto the Deandra prospect, located in Green Canyon Blocks 785 and786. Unocal will once again act as operator with a 75% workinginterest in the two blocks.

©Copyright 2001 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.