MMR Mcmoran Exploration Company

Kerr-McGee's Deepwater Success Continues with Ticonderoga Discovery New Venture in Alaska Yields Encouraging Drilling Results OKLAHOMA CITY, April 19 /PRNewswire-FirstCall/ -- Kerr-McGee Corp. continued its success in the deepwater Gulf of Mexico, announcing that the Ticonderoga discovery well and initial sidetrack encountered more than 250 feet of net high-quality hydrocarbon pay, primarily oil, in three zones. Kerr-McGee estimates that Ticonderoga, located on Green Canyon Block 768 in approximately 5,250 feet of water, offers potential resources of 30 million to 50 million barrels of oil equivalent. Operated by Kerr-McGee with 50% interest, Ticonderoga could be developed as a subsea tieback to the company's 100%-owned Constitution truss spar facility that will be located five miles to the north. Noble Energy, Inc. owns the remaining 50% interest. The Ticonderoga well, spud on March 21, drilled to a total measured depth of 13,556 feet. A sidetrack confirmed the down-dip limit of this reservoir. Currently, the company is performing reservoir modeling, with plans to carryout additional appraisal work this year. "Consistent with our strategy of creating hubs in core areas, our nearby Constitution facility would allow for the successful development of Ticonderoga, which would further enhance the original economics of the Constitution project," said Dave Hager, Kerr-McGee senior vice president responsible for oil and gas exploration and production. "With our expertise and high-quality prospect portfolio, our balanced exploration program continues to provide successful results. In addition to our deepwater discoveries, our new venture exploration program focused on proven world-class hydrocarbon basins also is yielding encouraging results, with a recent discovery at the NW Milne Point prospect in Alaska." In January, Kerr-McGee announced its entrance into the prolific North Slope basin of Alaska. Since that time, the company has drilled a successful exploration and appraisal well on the NW Milne Point prospect. The Nikaitchuq #1 vertical well production tested more than 960 barrels of oil per day of 38 degree API crude oil from the Sag River Formation. If developed, horizontal wells would most likely be utilized, which would be expected to produce at higher flow rates than the vertical well. The Nikaitchuq #2 well was drilled 9,000 feet southeast of the #1 well and successfully extended the accumulation down dip. The company currently is evaluating the data collected and re- calibrating 3-D seismic of the area to define appraisal drilling plans for the upcoming winter drilling season. Kerr-McGee operates NW Milne Point with a 70% interest and holds 12,000 acres in the area with the option to acquire an additional 54,000 acres. Armstrong Alaska, Inc. holds the remaining 30% interest. In addition, Kerr-McGee has completed drilling activities at the Dawson Deep prospect in the gulf and is evaluating opportunities for its development as a subsea tieback to the company's Gunnison facility. Dawson Deep, located about three miles from Gunnison on Garden Banks 625, is operated by Kerr-McGee, with a 25% working interest and a 21.9% net revenue interest. Partners are McMoRan Exploration Co. (NYSE:MMR) et al, 50% working interest, and Nexen Petroleum Offshore U.S.A. Inc. (NYSE:NXY), 15% working interest. Kerr-McGee is an energy and inorganic chemical company with global operations and assets of more than $10 billion. Statements in this news release regarding the company's or management's intentions, beliefs or expectations, or that otherwise speak to future events, including development plans, resource estimates and commerciality of discoveries, are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include those statements preceded by, followed by or that otherwise include the words "estimates," "plans," "should," or similar words. In addition, any statements regarding possible commerciality, development plans, capacity expansions, drilling of new wells, ultimate recoverability of reserves, future production rates, cash flows and changes in any of the foregoing are forward-looking statements. Future results and developments discussed in these statements may be affected by numerous factors and risks, such as the accuracy of the assumptions that underlie the statements, the success of the oil and gas exploration and production program, the price of oil and gas, drilling risks, uncertainties in interpreting engineering data, demand for consumer products for which Kerr-McGee's oil and gas business supplies raw materials, the financial resources of competitors, changes in laws and regulations, the ability to respond to challenges in international markets (including changes in currency exchange rates), political or economic conditions in areas where Kerr-McGee operates, trade and regulatory matters, general economic conditions, and other factors and risks identified in the Risk Factors section of the company's Annual Report on Form 10-K and other U.S. Securities and Exchange Commission (SEC) filings. Actual results and developments may differ materially from those expressed or implied in this news release. The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves. We use certain terms in this release, such as "potential resources," that the SEC's guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosures and risk factors in our Forms 10-K and 10-Q, File No. 1-16619, available from Kerr-McGee's offices or website, http://www.kerr-mcgee.com/. You can also obtain these forms from the SEC by calling 1-800-SEC-0330. Media Contact: Debbie Schramm Direct: 405-270-2877 Pager: 1-888-734-8294 Investor Contact: Rick Buterbaugh Direct: 405-270-3561 http://www.newscom.com/cgi-bin/prnh/19981012/DAM029 DATASOURCE: Kerr-McGee Corp. CONTACT: Media Contact, Debbie Schramm, Kerr-McGee Corp., +1-405-270-2877, or pager, 1-888-734-8294, or Web site: http://www.kerr-mcgee.com/ x

Copyright