Hess 1999 Annual Report Download - page 10

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8
EXPLORATION
AND PRODUCTION
UNITED STATES
Crude oil and natural gas liquids production in the United States increased to 64,600 barrels per day
in 1999 from 44,900 barrels per day in 1998. Natural gas production increased to 338,000 Mcf per day
from 294,000 Mcf per day in 1998. The increased production w as prim arily due to a full year of peak pro-
duction from the Baldpate Field on Garden Banks Blocks 259 and 260. The Corporation’s net production
from Baldpate reached peak levels of 26,800 barrels of crude oil and natural gas liquids per day and
77,000 Mcf of natural gas per day during the year. Am erada Hess is the operator of the Baldpate Field
with a 50% interest.
Northwest of the Baldpate Field, Amerada Hess is developing the Conger Field (AHC 37.50%) on
Garden Banks Block 215. The third developm ent w ell w as successfully drilled in 1999 and installation
of high-pressure, subsea trees and related facilities is scheduled to begin during the sum mer of 2000.
Three subsea w ells will be tied back to the Garden Banks Block 172 “ B” Platform which is located on
the Enchilada Field. Initial production from the Conger Field is scheduled for late 2000 w ith the
Corporation’s share of production expected to reach 7,000 barrels of oil per day and 35,000 Mcf of
natural gas per day in 2001.
Am erada Hess drilled a successful appraisal well on the Northwestern Field on Garden Banks Block
200 in 1999. The Corporation is in the fi nal stages of engineering the developm ent of the Northw estern
Field, w hich is located in 1,750 feet of w ater. Production is expected to begin late in 2000 and the
Corporation’s share of production is expected to peak at about 35,000 Mcf of natural gas per day in 2001.
Am erada Hess has a 50% interest in the Northwestern Field.
On the South Pass Block 89 Field (AHC 33.33%) five successful development wells in 1999 increased
the Corporation’s average production to 16,000 M cf of natural gas per day and 3,000 barrels of oil per
day from a previous level of 8,000 M cf of natural gas per day and 1,500 barrels of oil per day. On Galveston
Block 210 (AHC 55%), the Corporation drilled a successful development w ell that currently is producing
at a gross rate of 12,000 Mcf of natural gas per day.
Onshore, Amerada Hess produces 33,000 barrels of crude oil and natural gas liquids and 147,000
Mcf of natural gas per day. About 40% of this production is in North Dakota where the Corporation drilled
14 horizontal wells on fields in which it has, on average, 89% interests. Infill and extension drilling is
ongoing in the area.