In the Central Gulf of Mexico Lease Sale, Santos acquired a 20% Working Interest in nine (9) blocks with Murphy Exploration and Production Company (60%) as Operator, and Callon Petroleum Company (20%).
The Eugene Island Block 335#1, operated by Murphy Exploration and Production Company, has been drilled to a total measured depth of 8,075 feet (total vertical depth of 6,055 feet) and has encountered approximately 300 feet of net oil and gas pay in three intervals. This well will be temporarily abandoned and a delineation well will be commenced immediately. While the 300 feet of net pay is encouraging the structure is steeply dipping and the areal extent of the field remains to be determined.
The next block to be drilled in Santos’ Gulf of Mexico program will be Eugene Island 143 and this is scheduled to spud in mid-October. Proposed total depth is 16,000 feet and the targets are expected to be reached in December.
Five (5) more of the blocks are planned for drilling in 1998. They are West Cameron 272, West Cameron 582, East Cameron 155, Eugene Island 59 and Mobil Bay 997.