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Gulf of Mexico

May 1, 1997

The offshore boom took on ironic significance on April Fools Day when an American Exploration well being drilled on East Cameron 328 blew out. The crew of 42 was evacuated and very little oil was spilled. The well was believed to have blown out when gas and water escaped from a shallow reservoir located at around 1,200 ft, just below the well's 13 3/8 in casing shoe. The blowout occurred after cementing of the 9-5/8-in. casing at 2,750 ft TVD. The BOP was off the wellhead when the blowout

Murphy Oil has begun production from the first of two wells in the West Cameron Block 631 field in the Gulf of Mexico. Current production totals 100 MMcf/d of gas and 1,000 b/d of condensate. This block is located in 325 ft of water about 125 miles south of Cameron, Louisiana. Murphy is operator and holds 60% interest in the block. CNG Production Co. holds the other 40% interest.

Oryx Energy has begun production from the Neptune Spar in the deepwater Gulf of Mexico. Production from the first well is generating 4,800 b/d while facility commissioning is being completed. Oryx expects daily production to push past 25,000 b/d by late summer and hit 30,000 b/d by 1999.

Seagull Energy has made a successful completion in the Brazos Block 552 No. A-3 well, which encountered 86 ft of productive gas sands in six zones. Tests in two zones yielded gas flows totaling 4.8 MMcf/d. Seagull holds 17.5% working interest in the discovery well, located about 62 miles southwest of Freeport, Texas, in 78 ft of water. Other partners are Noble Affiliates, 32.5%; Case-Pomeroy, 24.35%; Mitchell Energy, 8.77%; and Blazer Energy, 8.77%.