Kerr-McGee reports Gulf of Mexico strike

May 17, 2006
Kerr-McGee Corp. has made an oil discovery at its Caesar prospect on Gulf of Mexico Green Canyon Block 683 about 160 miles south of Houma, La.

By OGJ editors
HOUSTON, May 17 -- Kerr-McGee Corp. has made an oil discovery at its Caesar prospect on Gulf of Mexico Green Canyon Block 683 about 160 miles south of Houma, La.

The Caesar-1 well was drilled to 29,721 ft TD in 4,500 ft of water. The oil discovery follows Kerr-McGee's recent announcement of a natural gas discovery at the deepwater Claymore prospect in Atwater Valley Block 140 (OGJ, May 15, 2006, Newsletter).

Kerr-McGee operates Caesar with a 20% working interest. Shell Exploration & Production Co. holds 62.5% interest, and Plains Exploration & Production Co. holds 17.5% interest.

After coring the productive interval, Kerr-McGee will drill a 4,000 ft sidetrack appraisal well north of the Caesar discovery. Development options include a subsea tieback to the Constitution spar 9 miles west.

Following the Caesar appraisal, Kerr-McGee plans to move the rig to the Mission Deep prospect on Green Canyon Block 955.

Meanwhile, appraisal work continues at Claymore, which Kerr-McGee operates with a 33.5% working interest. The company is drilling a 4,600 ft sidetrack to the northeast of the discovery to determine the reservoir extent.

Once the rig finishes the appraisal well, it is expected to move to the Norman prospect on Garden Banks Block 434. Kerr-McGee operates Norman with 35% interest.