HOUSTON, July 29 /PRNewswire/ -- Anadarko Petroleum Corporation
(NYSE: APC) said today that the Company has made a significant crude oil and
natural gas discovery in its "sub-salt" exploration program. The Tanzanite
discovery is located in the Gulf of Mexico at Eugene Island South Addition
Block 346 in 314 feet of water about 75 miles offshore Louisiana.
The exploration well (the OCS-G 14482 No.1) encountered more than 450 feet
of continuous hydrocarbon pay. An extensive suite of well logs has been run
on the reservoir, which confirms a major accumulation of hydrocarbons and
shows excellent porosity of about 30%. Extensive 3-D seismic data indicate a
productive reservoir extent of about 1,000 acres. Based on all of the
available information to date, Anadarko believes this reservoir contains at
least 140 million energy equivalent barrels (EEBs) of reserves. Three
additional pay zones totaling approximately 70 feet of net pay are present in
the wellbore. Further drilling on the prospect could significantly increase
the size of these estimates by increasing the aerial extent of the main
reservoir and determining the extent of the other pay zones.
Robert J. Allison, Jr., Anadarko Chairman, President and Chief Executive
Officer, said, "The Tanzanite discovery dramatically increases our domestic
reserve base (524 million EEBs at year-end 1997). We believe this could be
one of the largest discoveries made in the shallow waters of the Gulf of
Mexico since we discovered the Matagorda Island 622/623 Field in 1980. This
proves that giant fields can still be found in the U.S. Anadarko has the
resources, prospects and people in place to grow this Company significantly
over the next few years. We are not through finding giant oil fields."
The Tanzanite exploration well reached a total depth of 14,350 feet. The
Company will conduct extensive production tests on the No.1 well and results
will be announced when finished. The Company has contracted with Rowan
Companies, Inc. to immediately drill a delineation well in the Field.
Anadarko has acquired and will install a template (well guide) on the sea
floor to properly space future wells. Design work on the production platform
is underway. Anadarko is currently negotiating a contract for construction of
the production platform. Construction of the platform is expected to take
about 24 months.
Anadarko owns a 100% working interest in the Tanzanite Field.
Background information on the Sub-Salt Program
The term "sub-salt" refers to exploration wells that target potential
hydrocarbon zones below large tabular sheets of salt in the earth's
subsurface. Recent breakthroughs in both drilling techniques and seismic
acquisition and processing are essential to success in the play.
Anadarko is one of the most active companies in the Gulf of Mexico
"sub-salt" play. Since 1993, the Company has participated with partners in
drilling 10 exploration wells in the play. Five of these wells successfully
found hydrocarbons: Mahogany ('93), Teak ('94), Agate ('95), Monazite ('96)
and Tanzanite ('98) and five wells were dry holes.
Two of these discoveries are currently on production. The Mahogany Field
was the industry's first commercial sub-salt discovery and went on production
in December 1996. Partners are Phillips Petroleum -- operator (37.5% working
interest), Anadarko (37.5%) and Amoco (25%). Current production is about
15,000 barrels of oil per day (BOPD) and 30 million cubic feet of gas per day
(MMcf/d). Field development continues at Mahogany. The Agate Field began
production last week through the Mahogany platform and is producing about
17 MMcf/d and 2,000 barrels of condensate per day; partners are Phillips --
operator (50% working interest, and Anadarko (50%).
Anadarko currently owns a total of 41 lease blocks that encompass
20 sub-salt prospects in the shallow waters of the Gulf of Mexico. One other
sub-salt exploration project is currently drilling at Grand Isle Block 116
called the Hickory prospect; partners are Anadarko -- operator (50% working
interest), Shell USA (37.5%) and Ocean Energy Inc. (12.5%).
*This release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act 1934. Anadarko believes that its expectations are based on
reasonable assumptions. No assurances, however, can be given that its goals
will be achieved. See Additional Factors Affecting Business in the
Management's Discussion and Analysis (MD&A) included in the Company's 1997
Annual Report on Form 10-K.
SOURCE Anadarko Petroleum Corporation
 back to top
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 038950
CONTACT:
A. Paul Taylor of Anadarko Petroleum,
281-875-1101
|
