HOUSTON, July 29 /PRNewswire/ -- Anadarko Petroleum Corporation
(NYSE: APC) announced that it has signed an agreement with Texaco Exploration
and Production Inc., a wholly-owned subsidiary of Texaco Inc. (NYSE: TX), for
an exploration program in the Gulf of Mexico's sub-salt play.
Under the agreement, Anadarko will acquire rights to future exploration in
certain depths on 82 lease blocks in which Texaco has interests. The tracts
are located offshore Louisiana, where water depths range from 85 to
2,400 feet. The 82 blocks comprise a total of approximately 400,000 gross
acres.
Anadarko's working interests in new prospects that it identifies and
drills will vary depending on current Texaco partners. As part of the
agreement, Texaco has the option to retain a working interest in each
exploratory prospect by participating in the initial exploration well drilled
by Anadarko. Texaco has an average working interest of 50% in the 82 blocks,
which are subject to the agreement.
Financial terms of the agreement were not disclosed. The transaction is
expected to close by the end of July 1999.
"The agreement with Texaco represents an important addition to Anadarko's
sub-salt exploration portfolio," said John N. Seitz, President and Chief
Operating Officer of Anadarko. "This relationship doubles our acreage in the
sub-salt trend, which was one of our major objectives for 1999. We are
planning to move aggressively on these blocks with seismic and drilling
activities. With this agreement, we now have more running room in this very
successful and economic play."
Matt Cabell, Vice President, Exploration of Texaco's Gulf of Mexico unit
said, "The Gulf of Mexico is one of Texaco's worldwide exploration focus
areas. This agreement allows Texaco to increase its exploration activity in
the Gulf of Mexico and leverage the assessment of this sub-salt acreage
earlier than anticipated."
SOURCE Anadarko Petroleum Corporation
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CONTACT:
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