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BHP BILLITON PLC ANNOUNCES HYDROCARBON DISCOVERY WITH SHENZI-1 WELL IN DEEPWATER
GULF OF MEXICO
BHP BILLITON PLC
ISIN CODE : 00000566504
SHARE CODE: BIL
BHP Billiton today announced that it has made a hydrocarbon discovery with an
exploration well on its Shenzi prospect in the deepwater Gulf of Mexico.
The well has reached a measured depth of 26,607 feet and has encountered a gross
hydrocarbon column of 465 feet with 140 feet of net pay. The water depth is 4400
feet.
The Shenzi discovery is located 125 miles from the Louisiana coast in Green
Canyon Block 654. This lies in the Western Atwater Foldbelt area on the geologic
trend where the company has made the previously announced oil and gas
discoveries at Mad Dog, Atlantis, and Neptune.
The significance of the well will be assessed following further evaluation of
drilling and resource data. Appraisal drilling will be necessary to determine
the size of the find.
Petroleum`s President and CEO, Philip Aiken said today: "This is another
excellent result from our highly successful drilling campaign and it further
enhances our resource base in this area. The Shenzi discovery is 9 miles
northwest of the Atlantis discovery where we have committed initial capital
expenditure to advance the development of the 575 million barrels of oil
equivalent (gross) oilfield at a total estimated gross cost in excess of US $2
billion. In addition we are developing the adjacent Mad Dog oilfield with a
gross capacity of 80 thousand barrels per day and an anticipated first
production in late 2004. Appraisal drilling will continue this year on the BHP
Billiton operated Neptune discovery which is 15 miles east of Shenzi and where
we are undertaking preliminary development studies. We also are well positioned
in the future pipeline infrastructure where we have taken an equity share in the
development of the Caesar and Cleopatra oil and gas pipelines which will serve
this area."
He added, "The Western Atwater Foldbelt is set to be a core producing area for
BHP Billiton from late 2004, and this drilling result is further confirmation of
the delivery on our deepwater exploration growth strategy."
Drilling on Shenzi-1 began on 20 July, 2002, using the BHP Billiton-operated
drillship C.R. Luigs.
BHP Billiton owns a 44 percent interest and is the operator of Shenzi, with BP
owning a 28 percent interest and Amerada Hess holding the remaining 28 percent
interest.
Further information can be found on our Internet site:
http://www.bhpbilliton.com
Australia United Kingdom
Andrew Nairn, Investor Relations Mark Lidiard, Investor & Media
Tel: + 61 3 9609 3952 Mobile: Relations
+61 408 313 259 Tel: +44 20 7747 3956
email: email:
Andrew.W.Nairn@bhpbilliton.com Mark.Lidiard@bhpbilliton.com
Tracey Whitehead, Media Relations South Africa
Tel: +61 3 9609 4202 Mobile: Michael Campbell, Investor &
+61 419 404 978 Media Relations
Email: Tel: +27 11 376 3360
Tracey.Whitehead@bhpbilliton.com Mobile: +27 82 458 2587
email:
Michael.J.Campbell@bhpbilliton
.com
United States
Francis McAllister, Investor
Relations
Tel: +1 713 961 8625 Mobile:
+1 713 480 3699
email:
Francis.R.McAllister@bhpbilliton.
com
Date: 19/11/2002 07:54:10 AM Produced by the JSE SENS Department
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