LOS ANGELES, March 19, 1999 (PRIMEZONE) -- ARCO (NYSE: ARC) said today that its Gulf of Mexico oil and natural gas position received a significant boost this week when Vastar Resources, Inc. (NYSE: VRI) announced the Mirage deepwater discovery and deepwater lease sale success. ARCO holds an 82.1 percent interest in Vastar.
"Vastar remains a key contributor to ARCO's growth plans," said Mike E. Wiley, President and Chief Operating Officer. "These recent accomplishments highlight Vastar's ability to deliver strong results in the Gulf of Mexico."
On Wednesday, Vastar announced that the Mississippi Canyon 941 #1 exploratory well testing the Mirage prospect in the Gulf of Mexico deepwater encountered approximately 300 feet of net oil pay in five intervals, and is a significant oil discovery.
Vastar holds 75 percent working interest in block 941 and serves as operator. The Mirage discovery was the company's second consecutive company-operated deepwater discovery. The previous discovery was at the King prospect.
In another announcement, Vastar said that it was the apparent successful bidder, solely or with partners, on 18 lease blocks at Wednesday's Central Gulf of Mexico Outer Continental Shelf Sale 172. Vastar participated in apparent high bids totaling approximately $12.2 million in net expenditures. If all the blocks are subsequently awarded, the company's deepwater portfolio will expand by 14 blocks to 146 in total, while its shelf portfolio will expand by four blocks to a total of 407.
The sale represented an opportunity to add new prospects as well as to expand Vastar's position around existing prospects and discoveries in both the deepwater and shelf areas. All bids are subject to review by the Minerals Management Service of the United States Department of the Interior, which conducted the sale.
Headquartered in Houston, Texas, Vastar finds, develops and produces natural gas and liquid hydrocarbons. The company is currently active in more than 100 producing fields, with production in the Gulf of Mexico shelf, Gulf Coast, Rockies/Hugoton and Oklahoma/Arklatex areas, and a growing exploratory and development presence in the Gulf of Mexico deepwater trend.
At the end of 1998, Vastar represented 14% of ARCO's worldwide oil and gas reserves and about 21% of its daily production. In terms of the U.S., Vastar holds 21% of ARCO's total domestic reserves and in 1998 was responsible for 30% of its equivalent oil production.
From its headquarters in Los Angeles, ARCO operates a worldwide energy company focused on exploration and production and refining and marketing. In addition to its Gulf of Mexico interests operated by Vastar, ARCO has significant operations in Alaska, China, Indonesia, the United Kingdom, Algeria and Venezuela.
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(Some of the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. Actual results could differ materially based on numerous factors, including the realized level of crude oil and natural gas production and other risks detailed from time to time in the company's reports to the Securities Exchange Commission, including the 1998 report on Form 10-K.)