Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact:
Michael O. Aldridge
V. P.- Corporate Communications [LOGO]
8440 Jefferson Highway, Suite 420
Baton Rouge, LA 70809
(504) 927-1450
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OCEAN ENERGY JOINS SHELL OFFSHORE IN
GULF OF MEXICO EXPLORATION ALLIANCE
March 3, 1998
Baton Rouge, LA - Ocean Energy, Inc. ("OEI") announced today that it is
expanding its aggressive exploration program through an exclusive Gulf of Mexico
Exploration Alliance with Shell Offshore Inc. ("SOI"). The Alliance calls for 25
initial exploratory prospects, all delineated by 3-D seismic, to be drilled on
over 141,000 gross acres across the Gulf of Mexico shelf. Under the terms of the
agreement, OEI will participate for 25% of SOI's working interest in 25
prospects in the Outer Continental Shelf and state waters located off the coast
of Louisiana and Texas in water depths up to 1,300 feet. Ocean and Shell, two of
the top three most active Gulf of Mexico operators in drilling activity in 1997,
plan to coordinate their rig fleets to achieve greater efficiency and economies
of scale.
Ocean anticipates the two companies will drill in excess of 50 exploratory wells
together over the next 3 years through the combination of the Gulf of Mexico
Exploration Alliance, Delta Exploratory Joint Venture and South Pass Alliance.
Ocean Energy intends to fund its share of expenditures associated with the new
Alliance from its announced 1998 capital budget.
James C. Flores, Chairman, President and CEO, stated "This Gulf of Mexico
Exploration Alliance with Shell marks the third important business transaction
between the two companies within the past 12 months and collectively will expose
the companies to significant opportunities for new discoveries through drilling
on over 300,000 gross acres across the Gulf beginning in 1998. We are
particularly pleased to partner with Shell which is one of the proven industry
leaders and low cost finders of oil and gas in the Gulf through its application
of dynamic seismic and drilling technology. Working closely with Shell, we plan
to maximize value through the exploration and development of these new
opportunities."
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David T. Lawrence, Exploration and Development Manager, Shell Offshore Inc.,
stated "We look forward to continuing our partnership with Ocean Energy in this
new venture. Our combined efforts will accelerate value creation from our large
inventory of high quality prospects on the Shelf, while helping us to better
manage our cost structure."
Certain statements in this news release regarding future expectations, plans for
acquisitions, dispositions, and oil and gas exploration, development, production
and pricing may be regarded as "forward looking statements" within the meaning
of the Securities Litigation Reform Act. They are subject to various risks, such
as operating hazards, drilling risks, and the inherent uncertainties in
interpreting engineering data relating to underground accumulations of oil and
gas, as well as other risks discussed in detail in the Company's SEC filings,
including the Annual Report on Form 10-K for the year ended December 31, 1997.
Actual results may vary materially.
Ocean Energy, Inc. is an independent energy company engaged in the exploration,
development, production, and acquisition of crude oil and natural gas. OEI's
common stock is traded on the New York Stock Exchange under the symbol "OEI."
For further information, please contact Investor Relations at (504) 928-6222 or
mail requests to 8440 Jefferson Highway, Suite 420, Baton Rouge, LA 70809.
Additional information on Ocean Energy, Inc. is available on the Internet at
www.oceanenergy.com.
Shell Offshore Inc. is an exploration and production affiliate of Shell Oil
Company, the U. S. domestic operating company of the Royal/Dutch Shell Group.
SOI's Public Affairs Manager is Mr. B. R. Vehnekamp (504) 728-4604.
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