Texaco Discontinues Appraisal Drillings

Texaco has discontinued appraisal drilling of the Fuji and adjacent McKinley prospects in the Gulf of Mexico. Bruce Appelbaum, president of Texaco Exploration said, "Although several wells have logged significant pay sections in both prospects and have tested at potentially commercial rates, the size of the accumulations does not warrant future Texaco investment." Fuji is located 150 miles southwest of New Orleans. The No. 1 rank wildcat well (Green Canyon Block 506) was drilled in 1995 and encountered more than 180 ft. of oil pay. Three subsequent appraisal wells - two of which encountered notable oil pay - were drilled over the past three years. Test data, however, indicated the reservoirs were of limited areal extent. McKinley is located immediately northwest of Fuji. The No. 1 rank wildcat (Green Canyon 416) was drilled in 1998 and encountered more than 100 ft. of oil pay. An appraisal well drilled did not encounter significant hydrocarbons and was declared a dry hole.