Delivering Growth: GoM Deepwater Exploration

1
Delivering GrowthGoM Deepwater Exploration

• Jim Farnsworth
• Vice President,
• Gulf of Mexico Deepwater Exploration

2
Excellent Track Record
3000
2800
2600
2400
2200
800
Resources Yearly mmboe
2000
700
1800
600
1600
Cummulative mmboe
1400
500
1200
400
1000
300
800
600
200
400
100
200
0
0
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
N
3
Leading Deep Water Lease Position
BP
Vastar
802
N
e
w
O
r
l
e
a
n
s
Exxon-Mobil
Shell
H
o
u
s
t
o
n
Texaco
Chevron

• Chevron

Others
Lease Holdings - June, 2000
Mars
Source Lexco Database, Minerals Management
Service WD gt1000
Crazy Horse
Troika
2500
Atlantis
5000
Diana
Mad Dog
7500
Baha
10000
B
P
L
e
a
s
e
s
0
1
0
0
M
i
l
e
s
8
-
1
7
-
0
0
U
n
c
l
a
s
s
i
f
i
e
d
/
o
g
r
e
g
4
5
4
8
.
c
n
v
.
H
o
u
N
4
GoM Deepwater Potential
The deepwater is still realtively immature and
has the potential for 40 BBOE in large fields.
T
e
x
a
s
L
o
u
i
s
i
a
n
a
N
e
w

O
r
l
e
a
n
s
H
o
u
s
t
o
n
4
600'
3
2
1
6000'
Shallow Water (lt2500)
0
Area
60 M mi
2
Production
3 MMboe/d
Discovered
40 Bboe
40
35
30
25
Cumulative Resource (BBOE)
20
Shelf
Deep Water (gt2500)
600'
6000'
Area
50 M mi2
15
Deepwater (WD gt2500ft)
Production
800 Mboe/d
Discovered
10 Bboe
10

URH
10-40 Bboe
5
1999 Est. includes Crazy Horse
0
1
101
201
401
501
801
301
601
701
901
1001
1101
Discovery Sequence
N
5
Exploration Philosophy
N
6
Key Technology Petroleum Systems Analysis
Hydrocarbon Saturation
Low
High

Lithology Key
N
7
Key Technology Depth Imaging
3DDepth Imaging
3DTime Imaging
N
8
Key DW Drilling Technologies

• Dual Gradient Drilling

Shallow Water
Flow Zone












SALT













N
9
Key Technology Subsalt Drilling
6000ft

• Eliminate Casing Strings
• Technical Limit Drilling
• Cost Savings of 30 over previous subsalt well

Western Geophysical
N
10
Gulf of Mexico Deepwater
Actual / Projected BP Net of Royalty mboed
N
11
Currently Drilling Exploration and Appraisal Wells
Loop Storage
DELTA (300 mbd)
BUD (25 mbd)
COBIA (200 mbd)
RAM POWELL (60 mbd)
M
a
r
l
i
n
R
a
m
(85 mbd)
P
o
w
e
l
l
Loop SPMs
K
i
n
g
P
o
m
p
a
n
o
K
i
n
g
'
s
COGNAC (60 mbd)



P
e
a
k
MARS Oils P/L (400 mbd)
M
i
c
a
Texaco EIPS (200 mbd)
AMBERJACK (275 mbd)
(150 mbd)
Crazy Horse North
N
a
k
i
k
a
LOBSTER (100 mbd)
BONITO (75 mbd)
Poseiden
COUGAR (60 mbd)
BOXER (60 mbd)
U
r
s
a
JOLIET (11 mbd)
M
a
r
s
C
r
a
z
y
H
o
r
s
e
Texaco POSEIDON (400 mbd)
(60 mbd)
C
r
o
s
b
y
Crazy Horse Appraisal
E
u
r
o
p
a
Bison
T
r
o
i
k
a
Timon
Producing
H
o
l
s
t
e
i
n
Developments
N
e
p
t
u
n
e
Discoveries

Drilling
0

5
0

Atlantis Appraisal
Future Pipelines
M
i
l
e
s

Mad Dog Appraisal
M
a
d
e

f
r
o
m

0
5
0
8
4
3
0
4
.
c
v
3
N