ExxonMobil, partners to drill ultradeep, shallow water wildcat in Gulf of Mexico

ExxonMobil Corp. Thursday signed letters of intent with Houston-based independent Newfield Exploration Co., BP Exploration & Production Inc., and another unnamed firm to drill an ultradeep wildcat well on the Blackbeard West Prospect in Newfield's Treasure Island play in the shallow waters of Gulf of Mexico.

April 22, 2004

By OGJ editors

HOUSTON, Apr. 22 -- ExxonMobil Corp. Thursday signed letters of intent with Houston-based independent Newfield Exploration Co., BP Exploration & Production Inc., and another unnamed firm to drill an ultradeep wildcat well on the Blackbeard West Prospect in Newfield's Treasure Island play in the shallow waters of Gulf of Mexico.

The well, which is contracted to spud no later than Jan. 31, 2005, will be used to test prospective objectives at 27,000-30,000 ft, Newfield reported. The prospect covers numerous blocks in the South Timbalier and Ship Shoal areas in the gulf off Louisiana.

ExxonMobil will operate the Blackbeard prospect, while the undisclosed firm's participation is still pending approval by its board.

Newfield will be carried for a 23% working interest in the prospect "to the objective depth, subject to certain limitations," the firm stated.

The Blackbeard prospect is subject to a 1.25% overriding royalty interest held by the Treasure Island Royalty Trust, which was established in connection with Newfield's acquisition of EEX Corp. in mid-2002 (OGJ Online, June 4, 2002).

"The sole purpose of the trust is to hold nonexpense bearing overriding royalty interests in future production from the ultradeep zones of the Treasure Island area," Newfield said.