BP: Significant Resource Extension Of Mad Dog Field In Gulf Of Mexico

BP PLC (BP.LN), a producer of oil and gas, Wednesday announced the drilling of a successful appraisal well in a previously untested northern segment of the Mad Dog field in the U.S Gulf of Mexico, adding that pending confirmation through future appraisal drilling, the total hydrocarbons initially in place in the complex are now estimated to be up to four billion barrels of oil equivalent.

MAIN FACTS:

-The well results confirm a significant resource extension for the Mad Dog Field complex, which includes the existing field, in production since 2005, and appraisal drilling of the Mad Dog South field in 2008 and 2009.

-The well, drilled by BHP Billiton PLC (BLT.LN) on behalf of the unit operator BP, is located on Gulf of Mexico Green Canyon block 738 140 miles south of Grand Isle, LA., in about 4,500 feet of water.

-The well encountered about 166 net feet of hydrocarbons in the objective Miocene hydrocarbon-bearing sands and discovered an oil column of more than 300 feet.

-BP maintains a 60.5% working interest in Mad Dog; BHP Billiton has a 23.9% interest; Chevron Corporation (CVX), through its Union Oil Company of California, has a 15.6% interest.

-Due to the materiality of the Mad Dog South finds in 2009, BP has been advancing development options to increase production from Mad Dog by adding another spar production facility with a production capacity of 120,000-140,000 barrels of oil equivalent per day.

-in the U.S. Gulf of Mexico with net production of over 250,000 barrels of oil equivalent.

-BP is progressing eleven Gulf of Mexico projects: Atlantis Phases 2 and 3, Kaskida, Mars B, Galapagos, Na Kika Phases 3 and 4, Freedom, Mad Dog Phase 2, Mad Dog North and Tiber .

-BP shares at 1240 GMT up 10 pence, or 2.6%, at 381 pence, valuing the company at GBP72.21 billion.