Devon, Kerr-McGee temporarily abandon Gulf of Mexico Yorktown prospect
  by: OilOnline
  Friday, October 10, 2003

Kerr-McGee Corp. announced that drilling operations at the nonoperated Yorktown prospect in the Gulf of Mexico are being temporarily abandoned. A revised drilling plan is currently being developed; however, operations are not expected to resume until 2004. Kerr-McGee's costs associated with this well will be suspended pending its ultimate outcome. This results in projected third-quarter exploration expense of approximately $80 million, at the low end of previous guidance.

The Yorktown prospect is part of a deepwater exploratory joint venture that Kerr-McGee formed with Devon Energy . Kerr-McGee and Devon each hold a 50% interest in this prospect; however, Devon operates this well and is paying a disproportionate share of the costs. To date, costs for the Yorktown well are approximately $86 million, of which Kerr-McGee's share is approximately $25 million.