Chieftain Announces GOM Discoveries

Chieftain International, Inc. has participated in two recent offshore discoveries on West Cameron 300 and South Pass 38 in the US Gulf of Mexico.

The No. 3 exploratory well on West Cameron 300 was drilled to a total depth of 11,900 ft. and logged 66 net ft. of natural gas bearing reservoir rock in Miocene sands. The well was completed and tested at 11.5 mmcf of natural gas and 300 barrels of condensate per day. Work is under way to connect the well to existing facilities that handle production from the No. 1 well. Production from the No. 3 well is scheduled to commence during the second quarter of 2001. Additional drilling on the block is planned during 2001 to further delineate the field and to test additional exploratory prospects on the block. Chieftain has a 35 percent working interest and is operator of West Cameron 300.

On South Pass 38, the No. 1 exploratory well has been drilled to a total depth of 13,500 ft. and cased for production. The well encountered in excess of 340 net ft. of hydrocarbon bearing reservoir rock in multiple productive intervals.

Drilling of the No. 2 exploratory well followed immediately the No. 1 well and logged in excess of 250 net feet of hydrocarbon bearing Miocene sands. It was drilled to a depth of 12,800 ft. where 9-5/8 in. intermediate casing was set, and will be deepened to approximately 15,800 ft. to evaluate the primary objective section. The No. 2 well is being drilled in a separate fault block offsetting the No. 1 discovery well.

Planning is under way to design and install a production facility capable of processing 50 mmcf per day of natural gas and 2,000 barrels per day of oil. Production is expected to commence in the fourth quarter of 2001. Additional drilling is planned for the block in 2001 to further the delineation of productive reservoirs and to test additional exploration prospects. Chieftain has a 25 percent working interest in South Pass 38.

Chieftain expects to participate in drilling approximately 36 wells in the U.S. Gulf of Mexico region during 2001 and will operate the majority of these wells. Chieftain is currently drilling three wells in the Gulf of Mexico and conducting completion operations on wells in three fields including Eugene Island 189, High Island A-510/A-531 and South Timbalier 250. The company expects to commence production from 10 new fields in 2001.