CALGARY, Alberta, Feb. 9 /PRNewswire/ -- Anadarko Petroleum Corporation
(NYSE: APC) plans to invest $380 million CDN ($260 million USD) this year
through Anadarko Canada Corporation to drill 600 wells in Western Canada.
Canadian production is estimated to be 74,000 net barrels of oil equivalent
per day for 2001.
"Anadarko has laid out an aggressive growth strategy for Canada that ties
in strategically with the company's goal to grow its North American gas
business," said Jim Emme, President, Anadarko Canada Corporation. "Our
primary focus will be in our major operating areas in Alberta, British
Columbia and Saskatchewan where we plan to apply new advances in exploration
and drilling technologies. In addition to expanding our existing core areas,
we will also increase activity in our frontier plays in the Foothills,
Mackenzie Delta and the East Coast within the next two years."
Anadarko's core Western Canadian programs include the Moose Hills/Kehewin
heavy oil program in Northeastern Alberta, the Jean Marie gas play in
Northeast British Columbia and the Hatton shallow gas play in southwestern
Saskatchewan.
Approximately $265 million CDN ($180 million USD) of the capital budget
will go toward drilling development and exploratory wells. In the Moose Hills
area a 300 square kilometer (129 square mile) 3-D seismic acquisition program
is close to completion. The seismic data will be used to delineate recent
discoveries on approximately 80,000 net undeveloped acres in the area. The
company will have one rig running in the heavy oil project areas in March and
up to four rigs by June.
The company also has two active rigs in Western Alberta at Blackstone and
Pouce Coupe, and nine active rigs in British Columbia. A winter drilling
program for the Hatton shallow gas play is expected to begin mid-February,
with up to three rigs scheduled. Another shallow gas program will take place
during the summer of 2001 and will have up to six rigs in operation.
Northeastern British Columbia is one of Anadarko's busiest core areas, and
an active drilling season is currently under way in the area. The Jean Marie
play is one of British Columbia's most active plays, with over 700 billion
cubic feet of recoverable gas reserves discovered by the industry to date.
In the late fall of 2000, one of the company's Jean Marie dual horizontal
exploratory wells produced at an average test rate of 6 million cubic feet a
day (MMcf/d) while drilling. One follow-up well was drilled with similar test
results, and a third well was completed in late January, with testing to begin
shortly.
Within the Jean Marie play, the company currently has five exploratory
wells in different stages of drilling. At the peak of this year's winter
drilling program seven rigs will be in operation. A total of 15 wells are
expected to be drilled in the Jean Marie this season with eight of those
expected to be on production by summer 2001.
Other significant exploration activity in Northeast British Columbia is
under way in the Jedney/Buckinghorse area, adjacent to the Jean Marie play.
The company completed an all-weather road in late 2000 prior to the start of
drilling to ensure year-round access to the area. The 44-a Buckinghorse well
tested at a stabilized rate of 5.5 MMcf/d of gas and a second well is
currently drilling. A total of five development wells will be drilled in the
Jedney/Buckinghorse area in 2001. Additionally, significant outpost
exploration wells at the Conroy and Kobes projects are currently drilling.
In the coming months, Anadarko's Canadian activity is expected to peak at
14 active rigs, 10 of which will be in Northeast British Columbia. In
2001-2002, this is expected to increase to 22 rigs.
Beyond its core operations in Western Canada, Anadarko's growth strategy
for 2001 includes a focused effort on frontier exploration.
"The strategic combination of expanding existing plays in core areas and
significant entry into the frontier plays in the Mackenzie Delta and East
Coast of Canada will position Anadarko well for future growth," said Emme.
In the Mackenzie Delta, Anadarko holds 400,000 acres (net) where
9 trillion cubic feet (Tcf) of natural gas has already been discovered by
others, and up to 60 Tcf remains to be discovered, according to National
Energy Board estimates. The most significant of the company's acreage in the
north consists of two on-shore blocks adjacent to the natural gas-rich
Parson's Lake field, with partners Alberta Energy Company Ltd. and Gulf
Canada. In addition, the company holds an exploration license located
immediately northwest of the giant Taglu field. The company expects to
acquire seismic data this winter and have drillable prospects in these areas
by 2002.
On the East Coast, Anadarko, and its partner BP, committed $97 million CDN
($65 million USD) in late 2000 for Exploration Parcel Number Six in the
Scotian offshore. The 458,000-acre license is in deep water (approximately
2,000 meters or 6,562 feet) and is located 100 kilometers (62 miles) east of
Sable Island, where reserves are estimated at more than 3 Tcf. A work program
for the parcel will be developed in the second quarter of 2001.
Year-end 2000 proved reserves for Canada were 220 million barrels of oil
equivalent (BOE). Anadarko's Canadian operations are headquartered in Calgary
and the company employs approximately 500 people in Western Canada.
Houston-based Anadarko Petroleum Corporation is the world's largest
independent E&P company, with proved reserves totaling 2.06 billion BOE.
Domestically, it has operations in Texas, Louisiana, the Mid-Continent and
Rocky Mountain regions, Alaska and in the shallow and deep waters of the Gulf
of Mexico. It is the most active driller in North America. Internationally,
it is active in Canada, Algeria, Tunisia, West Africa, Guatemala, Venezuela,
Brazil, Georgia, the North Atlantic and Australia.
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.
SOURCE Anadarko Petroleum Corporation
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CONTACT:
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Wong, 281-873-1203, or investors, Paul Taylor, 281-874-3471, or
David Larson, 281-874-3265, all of Anadarko Petroleum Corporation
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