Kerr-McGee makes three discoveries in Navajo field area


By OGJ editors
HOUSTON, Mar. 25 -- Kerr-McGee Corp., Oklahoma City, said it made three oil and gas discoveries, each encountering conforming commercial quantities of hydrocarbons, in the Navajo field area on East Breaks acreage in the deepwater Gulf of Mexico.

The discoveries were made on the Navajo, West Navajo, and Northwest Navajo prospects, on East Breaks Blocks 690, 689, and 646, respectively. Navajo field is estimated to hold 20-30 million boe in combined reserves, which are split about 40:60, oil to natural gas.

The Navajo wells found more than 640 ft of net true vertical thickness pay in four separate pay sands. The field's first production of about 50 MMcfd from one well is expected in the second quarter. Production from the other two wells is expected in early 2003, Kerr-McGee said.

Navajo, which is in about 4,000 ft of water, lies 5 miles south of Kerr-McGee-operated Nansen field, where production began earlier this year with the world's first truss spar featuring an open truss structure (OGJ, Feb. 18, 2002, Newsletter, p. 8).

"The existing infrastructure and technology provided by the Nansen spar will enable the timely development of the reserves associated with the Navajo field," said Luke R. Corbett, Kerr-McGee chairman and CEO.

Kerr-McGee operates Navajo and holds equal interest with Ocean Energy Inc., Houston. Development of this field is under way as a subsea tieback to Nansen.

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