ARCO's Gulf of Mexico Deepwater Position Strengthened with Vastar Discovery, Success in Gulf Lease Sales

abarrelfullabarrelfull wrote on 08 Aug 2012 13:38

19 March 1999
LOS ANGELES —ARCO (NYSE: ARC) said today that its Gulf of Mexico oil and natural gas position received a significant boost this week when Vastar Resources, Inc., (NYSE: VRI) announced the Mirage deepwater discovery and deepwater lease sale success. ARCO holds an 82.1% interest in Vastar.
"Vastar remains a key contributor to ARCO's growth plans," said Mike E. Wiley, President and Chief Operating Officer. "These recent accomplishments highlight Vastar's ability to deliver strong results in the Gulf of Mexico."

On Wednesday, Vastar announced that the Mississippi Canyon 941 #1 exploratory well testing the Mirage prospect in the Gulf of Mexico deepwater encountered approximately 300 feet of net oil pay in five intervals, and is a significant oil discovery.

Vastar holds 75% working interest in block 941 and serves as operator. The Mirage discovery was the company's second consecutive company-operated deepwater discovery. The previous discovery was at the King prospect.

In another announcement, Vastar said that it was the apparent successful bidder, solely or with partners, on 18 lease blocks at Wednesday's Central Gulf of Mexico Outer Continental Shelf Sale 172. Vastar participated in apparent high bids totaling approximately $12.2 million in net expenditures. If all the blocks are subsequently awarded, the company's deepwater portfolio will expand by 14 blocks to 146 in total, while its shelf portfolio will expand by four blocks to a total of 407.

The sale represented an opportunity to add new prospects as well as to expand Vastar's position around existing prospects and discoveries in both the deepwater and shelf areas. All bids are subject to review by the Minerals Management Service of the United States Department of the Interior, which conducted the sale.

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