Exploration/Development news briefs, Dec. 1

Ocean Energy � Conoco � Miller Exploration � Key Production � Remington Oil & Gas � Eagle Investments � International Oil & Gas

Ocean Energy Inc. and Conoco Inc. said Thursday that they confirmed the commerciality of their Magnolia deepwater prospect in Garden Banks Block 783 of the Gulf of Mexico. The Magnolia No. 2 appraisal well, a 6,000-ft westerly step-out from the original find, was drilled to 17,435 ft, and encountered more than 400 net ft of oil-bearing sands. The well was sidetracked 3,000 ft to the southwest, where it encountered 400 net ft of oil-bearing sand. The partners postulate the field could yield more than 150 million boe. Ocean Energy holds 25%. Conoco is operator and 75% interest owner of the block.

Miller Exploration Co. said Crosby 5-2 No. 1 well in Covington County, Miss., is flowing at 2.2 MMcfd of gas and 300 b/d of condensate from the Cotton Valley formation on an 18/64-in. choke. The well was drilled to 18,330 ft. Miller expects the well to reach initial test rates of 3.0 MMcfd of gas and 528 b/d of condensate. Miller holds 23% of the well; Key Production Co. Inc., 37.5%; Remington Oil & Gas Corp., 20%; and Eagle Investments Inc. 4.23%.

International Oil & Gas Inc. said it plans to drill two wells in its acreage in Hood County, Tex., adding it was encouraged by results from the Wood Reef No. 1 well. The two-well program is expected to commence around yearend, weather permitting.

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