BP Announces Gulf of Mexico Discovery

HOUSTON, April 3, 2008 /PRNewswire/ -- BP America Inc. announced today an oil discovery at its Kodiak prospect in the deepwater Gulf of Mexico. The well, located in Mississippi Canyon block 771 approximately 60 miles (95 kilometers) southeast of the Louisiana Coast, is in about 5,000 feet (1,500 meters) of water. The Kodiak well was drilled to a total depth of approximately 31,150 feet (9,494 meters) and encountered about 500 net feet (152 meters) of hydrocarbon-bearing sands in Middle and Lower Miocene reservoirs. The well was deviated with a horizontal step-out of 7,400 feet (2,250 meters). Further Appraisal will be required to determine the size and commerciality of the discovery.

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"This discovery, in the vicinity of our 2003 Tubular Bells discovery, further strengthens BP's resource base in the Gulf of Mexico and has the potential to become an important new source of production for the USA," said Andy Inglis, Chief Executive, Exploration and Production.

The well is operated by BP Exploration & Production Inc., a wholly-owned subsidiary of BP America Inc., with a 63.75 percent working interest, and includes co-owners Eni with a 25 percent working interest, and Marubeni Oil & Gas (USA) Inc. with an 11.25 percent working interest. The lease was acquired at federal OCS Lease Sale 182 in March 2002.