HOUSTON, Feb. 6 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC)
will more than double its Rocky Mountain area exploration and development
budget to over $131 million this year to enact an aggressive strategy to find
and develop new sources of natural gas and coalbed methane.
"Because of the large acreage position that we hold in the region,
Anadarko has certain economic advantages that can't be matched by our
competitors," said John N. Seitz, Anadarko President and Chief Operating
Officer. "Our strategy this year is to deploy more resources in the Rockies
in an effort to unlock the full potential in this under explored area. In
fact, we view the Rocky Mountains as one of the richest areas capable of
providing new natural gas supplies for the U.S."
The company plans to drill more than 20 new exploratory and
130 development wells in Wyoming, Colorado and Utah, and will participate in
more than 275 additional wells operated by other companies. In addition, more
than 500 square miles of new 3D seismic will be gathered and interpreted. The
exploration and development activities will take place on some of the nearly
8 million acres Anadarko added last year in the three states through the
merger with Union Pacific Resources (UPR).
Anadarko is currently the most active driller in North America and will be
a significant player in future drilling in the Rockies where the National
Petroleum Council says there is an estimated 388 trillion cubic feet of
remaining recoverable reserves.
Coalbed Methane Development in Utah and Wyoming
One key area that will see an increase in activity will be the Helper and
Drunkard's Wash coalbed methane fields in Utah where Anadarko will invest more
than $20 million.
"We consider gas production from coalbed methane an increasingly important
core play that's why it is important for us to be in Utah where there are very
prolific coalbed methane fields," said Seitz. "Because of the complexity of
coalbed methane development, the acreage we're pursuing this year will take
two years to bring to production. However, these are excellent assets that we
can develop at low finding costs."
Fifty-two wells were drilled during 2000, ramping up average daily
production from the two fields from 10 million cubic feet a day (MMcf) to 20
MMcf per day at year-end. By the end of 2001, an additional 37 wells are
expected to lift production to greater than 40 MMcf per day. Further peaks in
production will be realized in 2002.
In Wyoming, Anadarko has an interest in seven different coalbed methane
projects. In one of the prolific plays, the Powder River Basin, 35 (net) wells
will be added to the two (net) wells drilled in 2000. Capital spending is
expected to exceed $10 million during 2001 and production volume is targeted
to peak in 2002.
Natural Gas in Utah and Wyoming
Anadarko plans to spend $11.5 million on conventional natural gas
exploratory drilling and on the acquisition of new leases that will focus on
three core plays in Utah and Wyoming in the sands of the Greater Green River
Basin, the deep Paleozoic reservoirs and the prolific Overthrust/Subthrust
plays.
"Big discoveries were made in these plays 20 years ago using 2D seismic,"
Seitz said. "This year, we will employ Anadarko's state-of-the-art 3D imaging
technology and we expect to yield another round of success in the region."
In Wyoming's Greater Wamsutter field, 60 (net) wells are slated for 2001,
with capital spending doubling to more than $35 million and production rising
to 84 MMcf per day, more than offsetting declines in the hundreds of existing
wells. In 2000, Anadarko drilled 32 conventional natural gas wells and
produced an average of 75 MMcf of natural gas a day from the field.
Houston-based Anadarko Petroleum Corporation is the world's largest
independent E&P company, with proved reserves totaling approximately
2.06 billion energy equivalent barrels. In 2000, the company drilled 102 new
development wells and two exploratory wells in the Rocky Mountains and
produced an average of 300* MMcf of natural gas a day. Anadarko has
additional domestic operations in Texas, Louisiana, the Mid-Continent, Alaska
and in the shallow and deep waters of the Gulf of Mexico. Internationally, it
is active in Canada, Algeria, Tunisia, West Africa, Guatemala, Venezuela,
Brazil, Georgia, the North Atlantic and Australia.
* This production figure has been normalized to reflect a full-year of
production from Union Pacific Resources.
This news release contains forward-looking statements and projections made
in reliance of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Anadarko believes that these forward-looking statements
are based on current, reasonable and complete information and assumptions.
However, a number of factors could cause actual results to differ materially
from the projections, anticipated results or other expectations expressed in
this release. While Anadarko makes these forward-looking statements in good
faith, neither Anadarko nor its management can guarantee that the anticipated
future results will be achieved. Reference should be made to Anadarko's
Securities and Exchange Commission filings for additional important factors
that may affect actual results, including the section entitled "Additional
Factors Affecting Business" in the Management's Discussion and Analysis (MD&A)
included in the company's 1999 Annual Report on Form 10-K.
http://www.anadarko.com
SOURCE Anadarko Petroleum Corporation
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CONTACT:
media, Teresa Wong, 281-873-1203, or Rick
Robitaille, 307-232-9505, both of Anadarko Petroleum Corporation;
or Tom Sommers of Sommers & Assoc., 713-222-1600, for Anadarko
Petroleum Corporation; or investors, Paul Taylor, 281-874-3471,
or David Larson, 281-874-3265, both of Anadarko Petroleum
Corporation
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