Hess 2000 Annual Report Download - page 8

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6
UNITED STATES
Amerada Hess, as operator, brought the Conger Field on Garden Banks Block 215, in which it has a
37.50% interest, onstream in December 2000. This Gulf of Mexico field is produced through a multi-
well, sub-sea system with topside support and processing facilities. Innovative technology was required
for the sub-sea system; it is the industry’s first use, on a field-wide scale, of 15,000 PSI horizontal sub-
sea tree technology. When development is completed in the second quarter of 2001, net production for
the Corporation is expected to peak at about 7,500 barrels of oil per day and 33,000 Mcf of natural gas
per day. The Conger sub-sea system is tied back to the Enchilada Complex in which Amerada Hess has
an interest.
First production from the Amerada Hess operated Northwestern Field (AHC 50%), on Garden Banks
Blocks 200 and 201, commenced in November 2000. The two-well, sub-sea system is tied back 16.5
miles to facilities at East Cameron Block 373. Production for Amerada Hess is expected to peak at 35,000
Mcf of natural gas and 800 barrels of condensate per day in 2001.
Amerada Hess drilled a successful development well in the Penn State Field (AHC 50%) that will be
completed in the second quarter of 2001, tied into existing sub-sea facilities and processed at the Bald-
pate platform. Net production from this well is expected to be 2,000 barrels of oil per day and 4,800 Mcf
of natural gas per day. Amerada Hess operates the Baldpate and Penn State Fields, which are located
on Garden Banks Blocks 259/260 and 216, respectively.
The Tulane Field (AHC 100%), on Garden Banks Block 158, is being developed as a single-well, sub-
sea satellite tieback. Detailed engineering is underway and initial production is expected late this year.
Production is expected to reach 35,000 Mcf of natural gas per day in 2002.
During 2000, Amerada Hess acquired interests in 22 blocks in Gulf of Mexico lease sales at a cost of
$19.6 million. Of these blocks, 13 are operated by Amerada Hess and 13 are located in water depths
exceeding 5,000 feet. Amerada Hess acquired 11 additional leases in the Gulf of Mexico in 2000 for
$2.8 million.
Onshore, Amerada Hess continued its drilling program in North Dakota, using horizontal drilling tech-
nology to optimize development of the Madison reservoir. The Corporation drilled 20 new wells in 2000
resulting in net incremental production of about 4,000 barrels of oil per day and 10,000 Mcf of natural
gas per day. Amerada Hess has an average interest of 86% in these wells. Additional drilling is planned
in this area for 2001.
Exploration and Production