Approves Mad Dog Oil/Gas
BHP Billiton Limited
13 February 2002
BHP Billiton Limited is issuing this announcement to fulfil disclosure
obligations arising from its secondary listing on the London Stock Exchange.
The text of this release is identical to that issued by BHP Billiton Plc
earlier.
12th Feburary 2002
Number: 08/02
BHP BILLITON APPROVES MAD DOG OIL/GAS DEVELOPMENT
BHP Billiton today announced approval for the development of its Mad Dog oil and
gas discovery in the ultra-deepwater Green Canyon area of the Gulf of Mexico.
The Mad Dog field contains estimated reserves in the range of 200-450 million
barrels of oil equivalent (mmboe) gross. (BHP Billiton share 42-94 mmboe after
deduction of royalty at a rate of 12.5 per cent.)
The BHP Billiton Board has sanctioned a capital expenditure for field
development of up to US$335 million. The final expenditure will depend on the
number of development wells required to optimise the capture of reserves.
Mad Dog is located in water depths of 4,500 to 6,800 feet and will be developed
using proven technology - a truss SPAR with an integrated drilling rig, dry
trees, and 16 well slots.
The capital expenditure involves the detailed engineering and installation of
the SPAR facility and drilling of new development wells. It will also include
the sidetracking of two previously drilled appraisal wells, and the completion
of those wells as producers.
The gross design capacity of the facility will be 80,000 barrels of oil per day
(bopd) and 40 million standard cubic feet of gas per day (mmscfd). First
production is expected by the end of calendar year 2004, with production at full
design capacity expected to occur within 12 months. The field has an estimated
life of 20 years.
President and CEO BHP Billiton Petroleum Philip Aiken said that approval of the
Mad Dog development represented another significant milestone in the Group's
ultra-deepwater Gulf of Mexico strategy.
'The Gulf of Mexico is a key component in BHP Billiton Petroleum's growth
program, and the Mad Dog field will be an important addition to production
already captured at Genesis (acquired in 2000) and Typhoon (on-stream in 2001),
'he said.
'Mad Dog will be a major oil and gas development, which will add significant
value to BHP Billiton's portfolio of petroleum assets. Later this year we also
expect to announce the sanctioning of the Atlantis development, which will
become our second ultra-deepwater producing asset in the Gulf.'
BHP Billiton has ownership interests in more than 220 leases in the Central Gulf
of Mexico. The Mad Dog field is situated in the Atwater Foldbelt, 125 miles from
the Louisiana coast. It is a very large structure, with over 4,000 feet of
structural closure covering 26,500 acres.
Discovered in November 1998 with the exploration well Mad Dog-1 (drilled in
Green Canyon block 826), the accumulation is located inside a unit that was
expanded to eight blocks in April 2000. It comprises Green Canyon blocks 825,
826, 738, 739, 781, 782 (the northern half of the block was added to the
original prospect area that included the southern half) and 783.
BHP Billiton holds a 23.9 per cent working interest in Mad Dog with partners BP
(designated operator) 60.5 per cent interest, and Unocal 15.6 per cent.
****
Further information can be found on our Internet site: http://www.bhpbilliton.com
ustralia
Dr. Robert Porter, Investor Relations United Kingdom/South Africa
Tel: + 61 3 9609 3540 Mobile: +61 419 587 456 Michael Campbell, Investor & Media Relations
email: Robert.Porter@bhpbilliton.com Tel: +27 11 376 3360 Mobile: +27 82 458 2587
email: Michael.J.Campbell@bhpbilliton.com
Mandy Frostick, Media Relations
Tel: +61 3 9609 4157 Mobile: +61 419 546 245 Ariane Gentil, Manager Communications
email: Mandy.J.Frostick@bhpbilliton.com Tel: +44 20 7747 3977 Mobile: + 44 7881 518 715
email: Ariane.Gentil@bhpbilliton.com
United States
Francis McAllister, Investor Relations
Tel: +1 713 961 8625 Mobile: +1 713 480 3699
email: Francis.R.McAllister@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209
Registered in Australia Registered in England and Wales
Registered Office: 600 Bourke Street Melbourne Victoria Registered Office: 1-3 Strand London WC2N 5HA United Kingdom
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The BHP Billiton Group is headquartered in Australia
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