Gulf of Mex Drilling

Broken Hill Proprietary Co Ld
11 July 2000


BHP ANNOUNCES ENCOURAGING GULF OF MEXICO DRILLING RESULT

The Broken Hill Proprietary Company Ltd (BHP) today announced initial results
from its appraisal well on the Atlantis discovery in the Atwater Foldbelt
ultra deepwater area of the Gulf of Mexico.  The well has encountered a
significant oil zone in Miocene sands with net pay in excess of 300 feet. 
Drilling will continue through additional prospective zones.  The well is
expected to reach its planned total depth of 18 600 feet within the next
several weeks.

The participants in the well are BHP 44 per cent and BP Amoco 56 per cent.

These initial appraisal results confirm that Atlantis is an important
discovery and one of three BHP / BP Amoco discoveries in the Atwater Foldbelt.
 Neptune was discovered in 1995 (BHP 42.5%) and lies 16 miles (25 kilometres)
to the northeast of Atlantis, while the Mad Dog discovery lies a similar
distance to the southwest. The appraisal well Mad Dog -2, drilled earlier this
year, encountered an oil column of 265 net feet. Overall reserves for the area
will be determined following further evaluation but expectations are that
resource levels of multi-hundred million barrels are present.

President BHP Petroleum Philip Aiken said: 'This is an exciting and highly
encouraging result, particularly as it follows successful drilling in Mad Dog
earlier this year.  The results to date indicate that BHP and its partners
have an involvement in a potentially major new hydrocarbon province in the
deepwater, Gulf of Mexico.  The results of this well and future planned
drilling will enable further delineation of reserve potential.' 

The Atlantis-2 well, which is being drilled by the BHP-operated C.R. Luigs
dynamically -positioned drilling vessel, is located in Green Canyon Block 743
in the Atwater Foldbelt ultra deepwater area of the Gulf of Mexico in a water
depth of 6675 feet.  The Atlantis-1 discovery well was drilled in 1998 in
Green Canyon Block 699 (3 miles to the northeast of the current well) where it
also encountered oil-bearing Miocene sands.

The results of this first appraisal well are being evaluated and, while
encouraging, it is likely that further appraisal will be required to delineate
this accumulation.

Further evaluation of the Atwater Foldbelt is planned for later this calendar
year when the BHP operated CR Luigs will drill an exploration well on the
Chinook prospect.  BHP and partners will also undertake a further appraisal
well on the Mad Dog discovery, where BHP has now satisfactorily concluded an
equity re-determination with its partners, resulting in the Company achieving
an overall 23.9 per cent share of the Mad Dog project reserves.

BHP has interests in 128 Blocks in the Atwater Foldbelt trend - making it an
important component of BHP's focussed deepwater exploration strategy.


Further information and other BHP News Releases can be found on our internet
site at: http://www.bhp.com.au/press/news.htm 

The website also contains an electronic photo image of the BHP-operated C.R.
Luigs dynamically -positioned drilling vessel. The vessel is drilling the
Atlantis-2 well located in Green Canyon Block 743 in the Atwater Foldbelt
ultra deepwater area of the Gulf of Mexico in a water depth of 6675 feet. 

Melbourne

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