Ocean Energy Enters Deepwater Gulf of Mexico Exploration Agreement

Apr 23, 2001, 01:00 ET from Ocean Energy, Inc.

    HOUSTON, April 23 /PRNewswire Interactive News Release/ -- Ocean Energy,
 Inc. (NYSE:   OEI) today announced that it has entered into a Gulf of Mexico
 deepwater exploration agreement with Kerr-McGee Oil & Gas Corp., a wholly
 owned subsidiary of Kerr-McGee Corp. (NYSE:   KMG).  The agreement calls for the
 two companies to jointly explore and develop oil and gas prospects on
 181 undeveloped deepwater blocks in the Gulf of Mexico located within several
 proven trends.
     The exploration venture will encompass more than a million gross acres
 with Ocean holding an average working interest of approximately 43 percent in
 the blocks.  The partnership has already identified various drilling
 opportunities of differing risk and size for 2001 and early 2002 with the
 first well from the venture expected to spud in the second quarter.  Ocean
 will serve as operator for at least 25 percent of the first 15 exploratory
 wells in the multi-year drilling program.
     "This venture strengthens our position as one of the leading independents
 in terms of deepwater leaseholdings in the Gulf of Mexico," said James T.
 Hackett, Ocean Energy chairman, president and chief executive officer.  "As
 partners, our companies have already established a proven track record of
 deepwater success.  With this new and expanded partnership, we leverage the
 economics and risks associated with a program of this magnitude and take
 advantage of the combined technical and operational resources of the two
 companies.  We will fund the expected joint venture drilling program from
 projected cash flows and the reallocation of previously planned capital
 programs in 2001."
     Since 1999, Ocean and Kerr-McGee have been developing their Nansen and
 Boomvang deepwater discoveries in the East Breaks area of the Gulf of Mexico.
 Together, estimated gross reserves for the two fields range from 190 to 260
 million barrels of oil equivalent.  The production sites will feature the
 world's first truss spars with a combined production capacity of up to
 80,000 barrels of oil and 400 million cubic feet of gas.  Production is
 anticipated to begin from the Nansen field in the fourth quarter of this year
 and the Boomvang field in the first quarter of 2002.
     Including the new joint venture, Ocean will hold interests in
 approximately 1.5 million gross acres of Gulf of Mexico deepwater leasehold,
 covering 274 blocks.  During 2001, the company will participate in one of the
 industry's most active worldwide exploratory and development deepwater
 drilling programs, with 24 to 30 wells scheduled to be drilled.
     A map of the leases included in this agreement is available on Ocean
 Energy's website at http://www.shareholder.com/oceanenergy/news/OEI0423.pdf.
     Ocean Energy, Inc. is an independent energy company engaged in the
 exploration, development, production, and acquisition of crude oil and natural
 gas.  North American operations are focused in the shelf and deepwater areas
 of the Gulf of Mexico, the Permian Basin, Mid-continent and Rocky Mountain
 regions.  Internationally, Ocean holds a leading position among U.S.
 independents in West Africa with oil and gas activities in Equatorial Guinea,
 Cote d'Ivoire and Angola.  The company also conducts operations in the
 republics of Egypt, Russia, Pakistan and Indonesia.
     Certain statements in this news release regarding future expectations,
 plans for acquisitions, dispositions, and oil and gas reserves, exploration,
 development, production and pricing may be regarded as "forward-looking
 statements" within the meaning of the Securities Litigation Reform Act.  They
 are subject to various risks, such as operating hazards, drilling risks, the
 inherent uncertainties in interpreting engineering data relating to
 underground accumulations of oil and gas, as well as other risks discussed in
 detail in the Company's SEC filings, including the Annual Report or Form 10-K
 for the year ended December 31, 2000.  Actual results may vary materially.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X23622677
 
 

SOURCE Ocean Energy, Inc.
    HOUSTON, April 23 /PRNewswire Interactive News Release/ -- Ocean Energy,
 Inc. (NYSE:   OEI) today announced that it has entered into a Gulf of Mexico
 deepwater exploration agreement with Kerr-McGee Oil & Gas Corp., a wholly
 owned subsidiary of Kerr-McGee Corp. (NYSE:   KMG).  The agreement calls for the
 two companies to jointly explore and develop oil and gas prospects on
 181 undeveloped deepwater blocks in the Gulf of Mexico located within several
 proven trends.
     The exploration venture will encompass more than a million gross acres
 with Ocean holding an average working interest of approximately 43 percent in
 the blocks.  The partnership has already identified various drilling
 opportunities of differing risk and size for 2001 and early 2002 with the
 first well from the venture expected to spud in the second quarter.  Ocean
 will serve as operator for at least 25 percent of the first 15 exploratory
 wells in the multi-year drilling program.
     "This venture strengthens our position as one of the leading independents
 in terms of deepwater leaseholdings in the Gulf of Mexico," said James T.
 Hackett, Ocean Energy chairman, president and chief executive officer.  "As
 partners, our companies have already established a proven track record of
 deepwater success.  With this new and expanded partnership, we leverage the
 economics and risks associated with a program of this magnitude and take
 advantage of the combined technical and operational resources of the two
 companies.  We will fund the expected joint venture drilling program from
 projected cash flows and the reallocation of previously planned capital
 programs in 2001."
     Since 1999, Ocean and Kerr-McGee have been developing their Nansen and
 Boomvang deepwater discoveries in the East Breaks area of the Gulf of Mexico.
 Together, estimated gross reserves for the two fields range from 190 to 260
 million barrels of oil equivalent.  The production sites will feature the
 world's first truss spars with a combined production capacity of up to
 80,000 barrels of oil and 400 million cubic feet of gas.  Production is
 anticipated to begin from the Nansen field in the fourth quarter of this year
 and the Boomvang field in the first quarter of 2002.
     Including the new joint venture, Ocean will hold interests in
 approximately 1.5 million gross acres of Gulf of Mexico deepwater leasehold,
 covering 274 blocks.  During 2001, the company will participate in one of the
 industry's most active worldwide exploratory and development deepwater
 drilling programs, with 24 to 30 wells scheduled to be drilled.
     A map of the leases included in this agreement is available on Ocean
 Energy's website at http://www.shareholder.com/oceanenergy/news/OEI0423.pdf.
     Ocean Energy, Inc. is an independent energy company engaged in the
 exploration, development, production, and acquisition of crude oil and natural
 gas.  North American operations are focused in the shelf and deepwater areas
 of the Gulf of Mexico, the Permian Basin, Mid-continent and Rocky Mountain
 regions.  Internationally, Ocean holds a leading position among U.S.
 independents in West Africa with oil and gas activities in Equatorial Guinea,
 Cote d'Ivoire and Angola.  The company also conducts operations in the
 republics of Egypt, Russia, Pakistan and Indonesia.
     Certain statements in this news release regarding future expectations,
 plans for acquisitions, dispositions, and oil and gas reserves, exploration,
 development, production and pricing may be regarded as "forward-looking
 statements" within the meaning of the Securities Litigation Reform Act.  They
 are subject to various risks, such as operating hazards, drilling risks, the
 inherent uncertainties in interpreting engineering data relating to
 underground accumulations of oil and gas, as well as other risks discussed in
 detail in the Company's SEC filings, including the Annual Report or Form 10-K
 for the year ended December 31, 2000.  Actual results may vary materially.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X23622677
 
 SOURCE  Ocean Energy, Inc.

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