Deepwater Nigerian block yields oil strike

Esso Exploration & Production Nigeria Deepwater West Ltd. and partners have made the first oil discovery on deepwater Oil Prospecting License 214 about 70 miles off Nigeria.

May 19, 2006

By OGJ editors
HOUSTON, May 19 -- Esso Exploration & Production Nigeria Deepwater West Ltd. and partners have made the first oil discovery on deepwater Oil Prospecting License 214 about 70 miles off Nigeria.

The Uge-1 well, drilled to 16,831 ft TD in 4,144 ft of water, encountered more than 300 net ft of oil pay.

Uge-1 is about 90 miles south-southeast of Esso's Erha deepwater oil and gas field, which recently began production and is expected to ramp up to 150,000 b/d by the third quarter (OGJ, May 8, 2006, p. 9).

Block operator Esso, Chevron Nigeria Deepwater B Ltd., Phillips Deepwater Exploration (Nigeria) Ltd., and Oxy Nigeria Exploration & Production Ltd. each holds a 20% interest in the block. Nigerian Petroleum Development Co. holds 15%, and Sasol E&P Nigeria Ltd. holds 5%.