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Successful well test in the Gulf of Mexico

September 5, 2006, 11:00 CEST

Statoil and partners Chevron and Devon have successfully completed a production test in a highly challenging structure in the Gulf of Mexico.

"The Jack 2 well test data are encouraging and may form the basis of future development projects in Walker Ridge," says Øivind Reinertsen, senior vice president of Statoil's Gulf of Mexico assets in Houston. "These development projects will be technologically challenging, allowing us to leverage our subsea and floating production experience."

During the test the Jack 2 well sustained a flow rate of more than 6,000 barrels of oil per day. Test results are very encouraging and may indicate a significant discovery. The full magnitude of the field's potential is still being defined.

Statoil and its partners plan to drill another appraisal well in the Jack structure in 2007.

The Jack production test has been very challenging and the deepest successful well test in the Gulf of Mexico. The Jack 2 well was drilled to a total depth of 28,175 feet.



The operator Chevron has an interest of 50% in the Jack field. Statoil and Devon each have a 25% interest. Jack is located some 435 kilometres southwest of New Orleans in the state of Louisiana, and 280 kilometres offshore.

"This area is one of the new and promising deepwater areas in the Gulf of Mexico," says Mr Reinertsen. "Statoil has a working interest of 25% in Jack, 6.25% in the St Malo discovery and 20% in the Tucker structure. In addition we have interests in several exploration licences planned to be drilled in 2007/2008. This makes Walker Ridge a core area for Statoil in the Gulf of Mexico."

In 2005 Statoil acquired Encana's entire deepwater portfolio in the Gulf of Mexico, consisting of 239 blocks with an average interest of 40%. The Tahiti development and the Tonga, Fox, Jack, St Malo and Sturgis discoveries are key assets in the portfolio. The transaction has made the Gulf of Mexico a potential core area for Statoil. It has also significantly expanded the group's deepwater position. The first oil was struck in the Jack structure in 2004.