18-03-02 Kerr-McGee announced three oil and gas discoveries on separate fault blocks at the Navajo field in its core East Breaks area of the deepwater Gulf of Mexico. Drilling activities at the Navajo, West Navajo and Northwest Navajo prospects, located on East Breaks blocks 690, 689 and 646 respectively, each encountered commercial quantities of hydrocarbons.
Combined reserves in the Navajo field are estimated in the range of 20 mm to 30 mm barrels of oil equivalent and are split approximately 40 % oil and 60 % natural gas. Kerr-McGee operates the Navajo field with 50 % interest, and Ocean Energy, holds the remaining 50 % interest.

The Navajo field is located in approximately 4,000 feet of water just 5 miles south of the Nansen field, where production began in January through the world's first truss spar facility. Kerr-McGee operates the Nansen field with 50 % interest, and Ocean Energy holds the remaining 50 % interest.
"Our continued drilling success in the East Breaks area demonstrates our ability to continue to maximize the value of our deepwater infrastructure," said Luke R. Corbett, Kerr-McGee chairman and CEO. "The existing infrastructure and technology provided by the Nansen spar will enable the timely development of the reserves associated with the Navajo field."
The Navajo wells encountered more than 640 feet of net true vertical thickness (TVT) pay in four separate pay sands. Development of this field is under way as a subsea tieback to Nansen. First production from the Navajo field is expected in the second quarter of 2002 at approximately 50 mm cfpd of gas from one well. Production from the other two wells is expected in early 2003.

Kerr-McGee is an Oklahoma City-based energy and inorganic chemical company with worldwide operations and assets of $ 11 bn.