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2004 Press Releases
FOR IMMEDIATE RELEASE: May 3, 2004

HALLIBURTON PERFORMS FIRST ENGINEERED SOLUTION AND LIMITED EMISSIONS DRILLSTEM TEST IN GULF OF MEXICO

-New methodology could change the industry perception of exploratory drillstem testing for reservoir evaluation.-

HOUSTON, Texas - A division of Halliburton's (NYSE: HAL) Energy Services Group - Production Optimization has successfully performed the first limited emission drillstem test (DST) in the Gulf of Mexico, using Halliburton's FasTest™ system.

The test, conducted in 8,717 feet of water, has provided a successful evaluation of the reservoir without flaring or offloading hydrocarbons during operations and was conducted without any lost-time or environmental incidents from a fifth generation semi-submersible drilling vessel. Mooring the vessel in 8,717' of water has set a new record for maximum depth at which any vessel has been moored.

"A key to the success of the operation is the fact that the test was an engineered solution from the reservoir to surface rather than based on conventional operational limitations," said Robert Brown, Halliburton's US Gulf of Mexico operations manager for testing.

With approval from Minerals Management Services, the test was conducted without a subsea test tree by maintaining control of the hydrocarbons, preventing the need to flow hydrocarbons to surface under reservoir drive. The process, which was repeated four times, achieved four separate analyzable periods and the recovery of a bulk sample large enough to prove flow assurance. Client representatives were able to view and analyze the data onsite via Halliburton's acoustic telemetry (ATS™) system as well as remotely in real time via Halliburton's real time operations (RTO) services.

"Reservoir analysis definitively shows a radius of investigation reaching far past the zone of damage," said Brown, "and demonstrates that the FasTest system yields similar results at a fraction of the time and cost of conventional drillstem testing.

"This testing achievement is the result of months of planning and the culmination of years of new technologies and analytical developments," Brown said. "The logistical challenges and on-site delivery success was executed with the highest regard to safety and preservation of the environment. This method of drillstem testing will provide our customers more value for their reservoir evaluation dollars and we look forward to being at the solutions forefront."

Halliburton, founded in 1919, is one of the world's largest providers of products and services to the petroleum and energy industries. The company serves its customers with a broad range of products and services through its Energy Services and Engineering and Construction Groups. The company's World Wide Web site can be accessed at www.halliburton.com.


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