Enterprise to operate Llano field in Gulf of Mexico

Enterprise Oil Gulf of Mexico Inc. has received the approval of Llano field coventurers to take over operatorship of the US Gulf of Mexico development from EEX Corp. Enterprise will the field, located in Garden Banks Blocks 385 and 386, including next month's provisional drilling of an appraisal well on 385.

May 18, 2001

By the OGJ Online Staff

LONDON, May 18 -- Enterprise Oil Gulf of Mexico Inc. has received the approval of Llano field coventurers to take over operatorship of the US Gulf of Mexico development from EEX Corp., said parent Enterprise Oil PLC Thursday.

Subject to Minerals Management Service clearance, Enterprise will be responsible for all future appraisal and development of the field, in Garden Banks Blocks 385 and 386, including next month's provisional drilling of an appraisal well on 385.

Enterprise said the 25,000-ft well would be completed by October, noting that a project team would "concurrently be examining the most appropriate development scheme for the field."

Pierre Jungels, chief executive of Enterprise, emphasized that the deal would mean EEX could "focus on exploration within the Greater Llano area, (while) Enterprise pressed ahead with appraisal work on the field."

The Llano deal will also serve to balance Enterprise's equity interests across Blocks 386 and 385 at 27.5%, rather than the 30%:25% split in interests it held previously on the two blocks.

The other coventurers in the Llano blocks are EEX (27.5%), PanCanadian Gulf of Mexico Inc. (22%), and ExxonMobil Corp. (22.5%).