Tuesday, May 16, 2006

Exxon Strikes Oil In Nigerian Deepwater Well

ExxonMobil said today that is struck 300 net pay feet of oil in a 16,000-foot well in Block OML216.

The well is about 60 miles from ERHC Energy's equity in the Nigeria-Sao Tome and Principe Joint Development Zone, where the water depth is about thousands of feet shallower.

Here is the Dow Jones report:

Exxon Mobil Corp. (XOM) drilled an oil discovery well 70 miles offshore Nigeria to a depth of 16,831 feet and encountered more than 300 net feet of oil.

The project is called the Uge-1 discovery well, and is the first discovery on oil prospecting license 214, in which Exxon has a 20% working interest.

Studies are underway to evaluate the well.

Other working-interest owners are Chevron Corp. (CVX) at 20%, ConocoPhillips (COP) at 20%, Occidental Petroleum Corp. (OXY) at 20%, Nigerian Petroleum Development Co. at 15% and Sasol Ltd. (SSL) at 5%.

Nigerian National Petroleum Corp. is the concessionaire.


-John Seward; 201-938-5400; AskNewswires@dowjones.com

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