06-01-00 Texaco announced the completion of testing on the Agbami-2 appraisal well, which confirmed that the Agbami structure is a giant discovery with potential recoverable reserves in excess of 1 bn oil equivalent barrels. The well test surpassed expectations and, together with other technical data, suggests that the Agbami discovery likely ranks among the largest single finds to date in deepwater West Africa.
The structure spans an area of 45,000 acres and extends from Block 216 into Block 217, offshore Nigeria. Texaco's share of the production from this resource is expected to exceed 50 %.
The Agbami-2 appraisal well, located in Block 216 approximately 220 miles south-east of Lagos, was drilled in 4,800 feet of water to a total depth of 15,683 feet. The well encountered 534 feet of pay in five separate oil-bearing zones, one of which flowed at a maximum rate of 10,000 bpd with a well-head pressure of 2,200 psi. Surface equipment limitations prevented the achievement of a higher flow rate.
Oil from the reservoir is light, sweet crude (45 degree API gravity) with no contaminants.
The Agbami-2 well delineated the discovery announced in January 1999. The initial well, Agbami-1, encountered 420 feet of oil pay in multiple zones. Complete appraisal of the field will require further delineation drilling and technical studies.
Commenting on the announcement John J. O'Connor, Senior Vice President of Texaco Inc. and President of World-wide Exploration and Production said, "The successful conclusion of the well test sets the stage for development of a world-class project that will add substantially to the company's resource base and will significantly increase Texaco's future production. Additionally, it will further enhance Nigeria's position as an important oil producing nation."

Texaco has interests in a total of five contiguous deepwater blocks offshore Nigeria, all of which have significant undrilled potential. In Block 216 the interest owners are Famfa Oil, an independent Nigerian oil company - operator, Texaco's wholly owned affiliate Star Deep Water Petroleum Limited - technical advisor, and Braspetro-Petrobras Internacional S.A.
In Block 217 the interest owners are Statoil - operator and Texaco Nigeria Outer Shelf Ltd. Texaco also has interests in Blocks 213, 215 and 218.
With the completion of Agbami-2, the drill ship Glomar Explorer will move 13 miles west to test another very large exploration prospect also located in Block 216.