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In 1998, we acquired a 20% non-operated interest in Block OPL-222 which covers 448,000 acres approximately 50 miles offshore in water depths ranging from 600 to 3,500 feet. Based on the drilling results outlined below, significant hydrocarbons exist on these blocks.
| Year |
Well |
Location |
Results |
| 1998 |
Ukot-1 |
Ukot field discovery well |
encountered three oil-bearing intervals and flowed at restricted rate of 13,900 bbls/d from two intervals |
| 2002 |
Usan-1 |
Usan field discovery well |
encountered several oil-bearing intervals and flowed at restricted rate of 5,000 bbls/d from one interval |
| 2003 |
Usan-2 |
3 km west of discovery |
appraised up-dip portion of the fault block |
| 2003 |
Usan-3 |
2 km northwest of discovery |
appraised separate fault block and flowed at restricted rate of 5,600 bbls/d from one interval |
| 2003 |
Ukot-2 |
3.5 km south of discovery |
encountered three oil-bearing intervals |
| 2003 |
Usan-4 |
5 km south of discovery |
flowed at restricted rate of 4,400 bbls/d from first interval and 6,300 bbls/d from second interval |
| 2004 |
Usan-5 |
6 km west of discovery |
sampled oil in several intervals |
| 2004 |
Usan-6 |
4 km south of Usan-5 |
flowed at restricted rate of 5,800 bbls/d from one interval |
| 2005 |
Usan-7 |
9 km southwest of discovery |
confirmed an eastern extension of the field |
| 2005 |
Usan-8 |
3 km southwest of discovery |
confirmed an eastern extension of the field |
Appraisal of the Usan field is complete and the field development continues to move forward. Our capital investment is expected to be within the range of US$1.6 to US$2.0 billion over the development period, with an estimated 2008 capital commitment of approximately US$300 million. The Usan field is expected to come on stream in early 2012 and will ramp up to a peak production rate of 180,000 bbls/d (36,000 bbls/d net to us). At year-end 2007, proved reserves of 30 mmboe before royalties (25 after royalties) comprise approximately 3% of our total proved oil and gas and Syncrude reserves.
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