Portfolio Stock / Anadarko Petroleum Corp.
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ANADARKO PETROLEUM CORPORATION
NYSE SYMBOL: APC
FEBRUARY 27, 2003 - 12:57 EST
Anadarko Details Capital Spending Program for Canada
CALGARY, ALBERTA--Anadarko Petroleum Corporation (NYSE:APC) today announced details of a C$540 million 2003 capital spending program for its Canadian operations.
Approximately 70 percent is earmarked for development and 30 percent for exploration. The company's peak rig count is expected to reach 20 rigs in the first quarter.
Anadarko Canada plans to drill 322 development and 43 exploration wells this year. This program is expected to increase production by more than 10 percent during 2003, after adjusting for the effect of the sale in 2002 of heavy oil producing properties.
Total production from Canada is expected to reach approximately 33 million barrels of oil equivalent for 2003 -- roughly 16 percent of Anadarko's projected companywide production for the year. Growth is expected to come mainly from Saddle Hills, where Anadarko recently drilled another natural gas discovery; the Slave Point trend of northeast British Columbia, where eight discoveries were made in 2002; the Wild River area of the Deep Basin in Alberta; and from several tight-gas plays in the Western Canadian Sedimentary Basin.
"We are confident that we will continue to grow our production base," said Bob Daniels, president of Anadarko Canada Corporation. "We've built an inventory of plays in Canada that should deliver growth over the long term."
In the deep basin tight gas play in Alberta, Anadarko plans to drill two exploration and 41 development wells in 2003, which are expected to double daily production from this area. More than C$96 million is allocated for this play, which achieved a 100 percent success rate in 2002. Anadarko has a deep inventory of locations and holds about 238,000 net acres in the area.
The company also is pursuing other tight gas plays in Canada, including the Hatton shallow gas field in southwest Saskatchewan and the Halfway River play of northeast British Columbia. Approximately C$50 million will be spent on 130 development wells in these two plays in 2003.
Anadarko plans to drill nine exploration and seven development wells this year in the Slave Point play. Of those wells, five exploratory and two development wells are planned in the Adsett area, where Anadarko drilled two successful exploratory tests in 2002. Anadarko has allocated C$68 million for the Slave Point play, with more than half designated for drilling.
In the foothills of northeast British Columbia, delineation drilling also is planned in the Monkman area, where Anadarko and its partners announced a gas discovery last year. One delineation well is currently drilling, and eight additional prospects are under evaluation for 2003.
Anadarko expects to be the most active operator in Canada's Northwest Territories in 2003. In the Fort Liard area of the southern territories, the company is currently drilling five exploratory wells, with five additional exploration wells and two development wells permitted.
ANADARKO PETROLEUM CORPORATION
NYSE SYMBOL: APC
FEBRUARY 27, 2003 - 12:52 EST
Anadarko Announces Natural Gas Discovery In Saddle Hills Area Of Alberta, Canada
CALGARY, ALBERTA--
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Anadarko Petroleum Corporation (NYSE:APC) has drilled a natural gas discovery in the Saddle Hills area of Alberta, expanding the proven and probable reserves from 90 billion cubic feet (Bcf) previously to 130 Bcf of gas from this multi-zone play.
The Saddle Hills 15-34-75-7W6 discovery well, drilled into the Devonian, is currently flowing at a rate of 15.9 million cubic feet (MMcf) of gas per day. With this 100 percent-owned well online, total production from Saddle Hills increased to 73 MMcf per day from a total of nine wells, compared with just 2 MMcf per day a year ago.
Prior to Anadarko's activity increase in this area starting in late 2001, Saddle Hills had 6 Bcf of proven reserves. "Our exploration success and impressive production growth confirm Saddle Hills as a core development area for Anadarko," said Bob Daniels, President of Anadarko Canada Corporation. "We will continue to further define the Devonian potential this year, with two more exploratory wells and three development wells planned."
Delineation of this discovery well will be a key focus for Anadarko in 2003, with nearly C$68 million allocated to development drilling, seismic and midstream activities to extend the play.
An additional five exploratory and nine development wells also are planned for other zones in the same play.
Anadarko holds 35,000 net acres in the Saddle Hills area.
Anadarko Petroleum Corporation is one of the world's largest independent oil and gas exploration and production companies. Houston-based Anadarko is active in the U.S., Canada, Algeria and Qatar and is executing strategic exploration programs in several other countries. More information is available at www.anadarko.com. |
