Hess 2008 Annual Report Download - page 20

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The Corporation presently estimates that its 2009 production will be approximately 380,000 to 390,000 barrels
of oil equivalent per day (boepd).
A description of our significant E&P operations follows:
United States
At December 31, 2008, 19% of the Corporation’s total proved reserves were located in the United States.
During 2008, 16% of the Corporation’s crude oil and natural gas liquids production and 11% of its natural gas
production were from United States operations. The Corporation’s production in the United States was principally
from properties offshore in the Gulf of Mexico, which include the Llano (Hess 50%), Conger (Hess 38%), Baldpate
(Hess 50%), Hack Wilson (Hess 25%) and Penn State (Hess 50%) fields, as well as onshore properties in North
Dakota and in the Permian Basin of Texas.
In the deepwater Gulf of Mexico, development of the Shenzi Field (Hess 28%) progressed in 2008. Tension leg
platform tendons, hull and topsides were installed and flowlines were laid and tested. First production is expected in
the second quarter of 2009.
In the Williston Basin of North Dakota, the Corporation holds a net acreage position in the Bakken Play of
approximately 570,000 acres. In 2009, the Corporation plans to drill additional production wells and expand
production facilities.
The Corporation is developing a residual oil zone at the Seminole-San Andres Unit (Hess 34%) in Texas where
carbon dioxide gas supplied from its interests in the West Bravo Dome and Bravo Dome fields in New Mexico will
be injected to enhance recovery of crude oil.
In the Pony prospect on Green Canyon Block 468 (Hess 100%) in the deepwater Gulf of Mexico, the
Corporation successfully completed drilling an appraisal well in June 2008. The Corporation is evaluating
development options for Pony.
At the Corporation’s Tubular Bells prospect (Hess 20%) located in the Mississippi Canyon area of the
deepwater Gulf of Mexico, a third well was successfully drilled during 2008. The operator is evaluating
development options for Tubular Bells.
At December 31, 2008, the Corporation had interests in more than 400 exploration blocks in the Gulf of
Mexico, which included 1,442,020 net undeveloped acres.
Europe
At December 31, 2008, 31% of the Corporation’s total proved reserves were located in Europe (United
Kingdom 9%, Norway 13%, Denmark 3% and Russia 6%). During 2008, 33% of the Corporation’s crude oil and
natural gas liquids production and 37% of its natural gas production were from European operations.
United Kingdom: Production of crude oil and natural gas liquids from the United Kingdom North Sea was
principally from the Corporation’s non-operated interests in Nevis (Hess 39%), Schiehallion (Hess 16%), Clair
(Hess 9%), Bittern (Hess 28%) and Beryl (Hess 22%) fields. Natural gas production from the United Kingdom was
primarily from the Atlantic (Hess 25%) and Cromarty (Hess 90%), Easington Catchment Area (Hess 32%), Bacton
area (Hess 23%), Beryl (Hess 22%), Everest (Hess 19%), Lomond (Hess 17%) and Nevis (Hess 39%) fields.
Norway: Substantially all of the 2008 and 2007 Norwegian production was from the Corporation’s interest in
the Valhall Field (Hess 28%). A field redevelopment for Valhall commenced in 2008 and is expected to be
completed in 2010. The Corporation also holds an interest in the Snohvit Field (Hess 3%) located offshore Norway.
Denmark: Crude oil and natural gas production comes from the Corporation’s interest in the South Arne
Field (Hess 58%).
Russia: The Corporation’s activities in Russia are conducted through its 80%-owned interest in a corporate
joint venture operating in the Volga-Urals region of Russia.
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