CALGARY, Alberta, March 26 /PRNewswire/ -- Anadarko Petroleum Corporation
(NYSE: APC) announced that with the completion of the Berkley Petroleum Corp.
(Toronto: BKP.) acquisition, Anadarko has increased the total capital spending
plan for its Canadian operations by 49 percent to U.S. $386 million, excluding
the acquisition transaction.
"We're extremely excited about the prospects we've been working this
winter in British Columbia, Alberta, Saskatchewan and the Northwest
Territories," said Anadarko Canada Corporation President James J. Emme.
"We're seeing some promising early indications from our exploratory drilling
programs in Northeast British Columbia and Northwest Alberta, in particular.
"The Berkley assets offer some excellent opportunities for both
exploration and development in addition to those we've been working
previously," Emme added. "As a result, we intend to accelerate our overall
activity level in Canada substantially over the next few years."
Anadarko had originally budgeted $259 million for Canadian operations for
2001. The acquisition will increase capital spending by $127 million for the
combined company, which includes $38 million of additional spending over
Berkley's original 2001 plans. Berkley spent $46 million in the first two and
a half months of 2001. The company expects to drill more than 600 net wells
in Canada in 2001.
Anadarko currently is the sixth most active driller in Canada and plans to
increase its winter activity level from a peak rig count of 28 rigs working in
2001 to as many as 35 rigs in winter 2002. In addition, the company expects
to run 15 rigs this summer in Alberta, British Columbia and Saskatchewan.
The Berkley acquisition increased Anadarko's Canadian reserves by
42 percent, to 312 million barrels of oil equivalent, of which 65 percent is
natural gas. It also increased the company's total acreage position in Canada
from 3 million to 4.7 million net acres.
During the 2001 winter drilling season Anadarko continued to expand its
Jean Marie natural gas play in Northeast British Columbia, where the majority
of its drilling activity has been focused. Anadarko increased its acreage
position in the play by 80,000 acres in February 2001, to 167,600 net acres.
The company currently has 12 horizontal wells at various stages of completion,
including four dual horizontal wells.
Six Jean Marie wells will begin producing by early April at a combined
rate of 10 million cubic feet a day -- the initial capacity of the production
facilities. These wells tested at daily rates of between 2 million and
4 million cubic feet a day of gas. Four of the remaining six wells will begin
producing this summer, and the remaining two next winter. The company expects
to conduct a summer drilling program in Jean Marie as well.
In the Buckinghorse prospect area -- also in Northeast British Columbia --
the company drilled two successful exploration wells. The Green a-A55-A
flowed at a rate of 4.3 million cubic feet a day, and the 44-a well is flowing
at a stabilized rate of 5.5 million cubic feet a day. Anadarko owns a
100 percent working interest in both wells. Other high-impact exploration in
Northeast British Columbia includes one well at the Conroy prospect and one
well currently testing at Kobes.
In the southern Northwest Territories and Northeast British Columbia,
development drilling in the Liard Maxhamish area resulted in five new gas
completions from the Mississippian Mattson formation. Anadarko holds working
interests ranging from 33 to 50 percent.
The company also recompleted two gas wells in the Liard Maxhamish area.
First production is expected shortly, with expected initial gross production
volumes of 20 million cubic feet a day.
In the Mackenzie Delta further north in the Northwest Territories, a
450-kilometer 2-D seismic survey is in progress and should be complete by
mid-April. Anadarko and its partners have contracted a rig for drilling as
early as next winter. Anadarko holds a 37.5 percent working interest.
Alberta Energy Corporation is the operator.
In northern Alberta, 10 successful oil wells were drilled this winter in
the Dawson area, each with initial production rates of between 250 and
1,000 barrels per day of light oil. The company has a 33-well drilling
program planned for the remainder of this year, focusing on new pool wildcats
and exploitation drilling opportunities identified from this winter's
discoveries. Other high-impact exploration includes one well at the
Blackstone prospect.
In the Wild River/Wild Hay area in northwestern Alberta, the company is
currently engaged in a two-rig natural gas development drilling program.
Significant production growth is expected as numerous wells in this multi-pay
area are completed throughout the year.
In the Larne area of northwestern Alberta, the company participated in two
successful exploratory Devonian Slave Point tests. Each well tested at rates
between 1.5 million to 4 million cubic feet per day of gas. First production
is expected in mid-April 2001. Anadarko holds a 50 percent working interest.
In the heavy oil area of eastern Alberta, Anadarko drilled a total of
17 development wells with a 100 percent success rate. The company added
520 barrels a day of new production as a result of winter drilling.
In addition, a 330-square kilometer 3-D seismic program will be completed
by the end of March in the heavy oil fields. Anadarko controls 80,000 net
acres in this sparsely drilled area. An aggressive summer drilling program is
planned, with two to three rigs running.
In the Hatton shallow gas project in southwestern Saskatchewan, the
company drilled 27 development wells during the winter season, with
15 currently on production. Currently, daily net production from Hatton is
70 million cubic feet. More than 250 wells are planned for the summer
drilling season.
Houston-based Anadarko Petroleum Corporation is the world's largest
independent E&P company, with proved reserves of more than 2 billion barrels
of oil equivalent. 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. Anadarko is the most active driller in North
America. Internationally, Anadarko is active in Canada, Algeria, Tunisia,
Egypt, West Africa, Guatemala, Venezuela, Argentina, 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 2000 Annual Report on Form 10-K.
SOURCE Anadarko Petroleum Corporation
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CONTACT:
media, Nadine Barber, 403-231-0509, or Anne
Pearson, 281-876-8368, or investors, Paul Taylor, 281-874-3471,
or David Larson, 281-874-3265, all of Anadarko Petroleum
Corporation
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