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Dominion News Releases
June 19, 2001
Dominion Approves Devils Tower Project
NEW ORLEANS – Dominion Exploration and Production, Inc. a
subsidiary of Dominion (NYSE:D) announced today approval to go forward with
development of its Devils Tower field. The project will utilize a spar that
can produce up to 60,000 barrels of oil per day from the previously announced
discovery in Mississippi Canyon Block 773. First production is expected in mid-2003.
“Effective planning by our development team will allow us
to go from discovery to first production in about three years,” said Duane Radtke,
chief executive officer and president of Dominion E&P. “This could be one of
the fastest cycle times for a deepwater floating production platform.”
Dominion is just completing drilling and evaluation of the
final two appraisal wells in the field. The No. 4 well penetrated five productive
sands in a previously unt ested fault block with approximately 350 net feet
of pay. The No. 5 well and No. 5 sidetrack extended the hydrocarbon column in
six previously penetrated sands with over 400 net feet of pay. The field reserves
are in the range of 50 to 75 million barrels of oil equivalent.
SparTEC, Inc., an affiliate of J. Ray McDermott, will construct
the spar for Devils Tower. At 5610 feet of water, this spar will be the world’s
deepest dry tree platform. The spar design is proven technology as three spars
have been installed and four others are under construction. The Devils Tower
spar will utilize a 94’ diameter truss configuration with slots for eight dry
tree wells. It will have flexibility to accommodate future subsea tiebacks.
“Dominion is pleased to continue our long relationship
with McDermott,” Radtke said. “And while this will be our fourth sanctioned
deepwater project, it is the first operated by Dominion. Operating in the deepwater
is another milestone in our overall exploration and production strategy.”
Dominion owns 75 percent working interest in Devils Tower.
Pioneer Natural Resources Company owns the remaining 25 percent interest.
Dominion is the nation's largest fully integrated gas and
electric company. It has four million customers, 21,000 megawatts of electric
power generation, 2.8 trillion cubic feet of natural gas and oil reserves, and
operates North America's largest natural gas storage system. Dominion is positioned
to serve the more than fifty million homes and businesses in the Midwest to
Northeast quadrant of the United States.
This press release contains forward-looking statements.
The company wishes to caution readers that the assumptions which form the basis
for forward-looking statements with respect to or that may impact earnings for
fiscal 2001, and thereafter, include many factors that are beyond the company's
ability to control or estimate precisely, such as estimates of future market
conditions and the behavior of other market participants. Other factors include,
but are not limited to, weather conditions, economic conditions in the company's
service territories, fluctuations in energy-related commodity prices, conversion
activity, other marketing efforts and other uncertainties.
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