Kerr-McGee acquires interests in Alaska and Brazil

Jan. 8, 2004
Affiliates of Kerr-McGee Corp. , Oklahoma City, agreed to acquire rights in leases in the North Slope basin of Alaska and in the Campos basin off Brazil.

By OGJ editors
HOUSTON, Jan. 8 -- Affiliates of Kerr-McGee Corp. , Oklahoma City, agreed to acquire rights in leases in the North Slope basin of Alaska and in the Campos basin off Brazil.

Kerr-McGee Oil & Gas Corp. will acquire a 70% working interest in eight leases from Armstrong Alaska Inc. The leases encompass 12,000 acres off the Alaska coast, northwest of Prudhoe Bay.

Kerr-McGee will operate the leases and expects to spud at least one exploratory well during the first quarter. Armstrong holds 30% interest. The agreement includes the right to acquire interest in 13 additional leases in the area, totaling 54,000 acres.

In addition, Kerr-McGee do Brasil Ltda. will acquire 33.3% working interest in the BM-C-7 block in the Campos basin from EnCanBrasil Ltda., subject to government approvals. In 2004, Kerr-McGee expects to participate in one exploratory well on this 161,000-acre block in 400 ft of water. EnCanBrasil operates the block with 66.33% interest.

With the addition of this acreage, Kerr-McGee holds interests in more than 68 million undeveloped acres worldwide, with more than 80% in deepwater trends.