ANCHORAGE, Alaska, Aug. 13 /PRNewswire/ -- Anadarko Petroleum Corporation
(NYSE: APC) today announced a major exploration agreement with Alaska's Arctic
Slope Regional Corporation (ASRC), giving the Company exclusive access to more
lands for exploration than any oil company operating in the state. Anadarko
now has exploratory access for up to 3.3 million acres controlled by ASRC.
The agreement provides Anadarko with exploration rights to 2.3 million
acres that ASRC has under title today. Anadarko also has exploration rights
to an additional 1.0 million acres now held by the Bureau of Land Management
(BLM). From that 1.0 million acres, ASRC will eventually claim title to about
240,000 acres as a part of its land selection rights under the Alaska Native
Claims Settlement Act.
Following initial evaluation, Anadarko has the option to lease prospective
acreage from ASRC for further exploratory work. Future phases of the
agreement will be based on a work commitment by Anadarko.
John N. Seitz, Anadarko's Executive Vice President of Exploration and
Production, said, "We are excited about our new partnership with ASRC. This
agreement provides us with access to prospective acreage and it will help
maximize the value of these lands for the benefit of the ASRC shareholder.
Alaska is now a core area for Anadarko, and we have exploration programs
underway in three major hydrocarbon basins: the North Slope, the Cook Inlet
and the Foothills region.
In State Lease Sale 87 held in June 1998, Anadarko was the third most-
active bidder, investing $8.1 million (net) to acquire 26 tracts, 20 of which
the Company holds alone and six of which it holds with Fina, Inc. The ASRC
acreage in the Foothills is intermingled and adjacent to some of these
recently acquired state lands.
Anadarko has been in Alaska since the early 1990s. The Company is a 22-
percent partner in the ARCO Alaska-operated Alpine Field, located on the North
Slope. Under a separate agreement, Anadarko (operator) and ARCO Alaska are
exploring 166,000 acres in Cook Inlet Basin. The partners recently spud their
first well at the Moquawkie prospect, located onshore about seven miles north
of the village of Tyonek.
Anadarko is one of the world's largest independent exploration and
production companies with proved reserves of more than 800 million equivalent
barrels. Anadarko is headquartered in Houston, Texas and has an office in
Anchorage, Alaska.
For more information, please call 907-563-9519 in Alaska, or 281-874-3491
in Houston.
Anadarko in Alaska
Background Information
Anadarko has an active exploration program in three regions of Alaska:
Cook Inlet/Kenai Peninsula, the North Slope along the Barrow Arch and the
Central Arctic/Foothills region. Through the end of 1997, Anadarko had
invested more than $60 million in Alaska. In 1998, the Company has planned
expenditures of about $83 million. The largest component of the 1998 budget
is earmarked for the development of the Alpine Field on the North Slope.
Cook Inlet
In 1996, Anadarko signed a two-year strategic alliance with ARCO Alaska in
Cook Inlet Basin. Anadarko operates this joint venture and is combining new
exploration ideas with ARCO Alaska's strong acreage position. Under the terms
of the agreement, ARCO Alaska contributed 127,000 acres to the venture.
Anadarko and ARCO Alaska acquired 39,000 acres in State Sale 85, bringing the
total acreage position to 166,000 acres. The partners each have a 50-percent
working interest in the agreement.
Over the last 18 months, Anadarko has acquired about 280 miles of new 2-D
seismic data on both sides of Cook Inlet. Using new and existing seismic
data, Anadarko mapped a number of exploratory prospects. The first prospect
-- known as Moquawkie -- spud in late June 1998. The Moquawkie prospect is
located on the west side of Cook Inlet near the Village of Tyonek. The Tyonek
Native Corporation owns the surface lands and Cook Inlet Region, Inc. owns the
subsurface.
Anadarko continues to study the geologic potential of Cook Inlet Basin.
In the winter of 1998, Anadarko led a consortium in shooting the first
regional 3-D seismic program (96 square-miles) ever conducted on the Kenai
Peninsula.
Alpine
Discovered in April 1994, ARCO Alaska (operator) and Anadarko announced
the Alpine Field as commercial in 1996. The Field has proven and potential
oil reserves of 365 million barrels (gross). This is the largest U.S. onshore
discovery in 15 years and it is the fifth largest field on the North Slope.
First production of 40,000 BOPD is expected in 2000, increasing to 70,000 BOPD
in 2001. Technological advancements have significantly reduced the surface
impact of field development on the North Slope. The Alpine Field encompasses
about 40,000 acres of aerial extent. Field development will only impact about
100 acres of surface. Development wells are being "clustered" from two
central drilling locations. The Field is being developed much like an
offshore platform, with no roads or bridges. All personnel and supplies will
be flown to the Field. Alpine Field development is about 20 percent complete.
Foothills
Anadarko has an exclusive exploration agreement with the Arctic Slope
Regional Corporation for 3.3 million acres. Anadarko has the option to lease
prospective acreage from ASRC, including 2.3 million acres that ASRC has under
title and an additional 240,000 acres it will claim title to through its land
selection rights under the Alaska Native Claims Settlement Act. Anadarko will
immediately begin evaluating existing seismic data in the Foothills region.
Central Arctic
Anadarko was high-bidder on 26 of 35 tracts in State Sale 87, held in June
1998. Anadarko is operator on all of the tracts. Anadarko bid alone on 20
tracts, marking the first time Anadarko has elected to solo-bid on the North
Slope. Anadarko and partner Fina, Inc. acquired six tracts.
Beaufort Sea
Anadarko's first wildcat well in Alaska was drilled in 1993. Anadarko was
a partner in the Exxon-operated Thetis Island prospect, located about five
miles offshore North Slope. The expendable exploratory well(1) encountered
encouraging oil shows. Anadarko took over the prospect from Exxon in 1997 and
continues its exploration efforts in the area.
In partnership with ARCO Alaska, the Company acquired six offshore blocks
totaling about 34,000 acres in Federal Lease Sale 144. About 46,000 acres
were acquired in State Lease Sale 86. ARCO Alaska operates these acres with
Anadarko holding a 22-percent working interest.
National Petroleum Reserve-Alaska
Anadarko is encouraged by the recent announcement by Secretary Bruce
Babbitt, Department of the Interior, to move forward with exploratory leasing
in the Northeast Planning Area of the National Petroleum Reserve-Alaska
(NPRA). About 4.0 million acres of the 4.6 million-acre area should be
available for lease in early 1999. The Company believes that NPRA is
prospective and has been acquiring proprietary seismic data in the area over
the past three winter exploration seasons.
Anadarko commends Governor Knowles and the efforts from Alaska state
agencies for their leadership in helping to develop this leasing scenario.
Industry has proven its ability to operate in sensitive environments.
Reasonable regulations should help make this a successful lease sale.
Anadarko believes that the potential to discover commercial reserves exists in
NPRA. Anadarko is currently reviewing the Final Environmental Impact
Statement issued by the Bureau of Land Management and will be making comments
in the next 30 days.
(1) Many exploration wells on the North Slope are termed "expendable."
Oftentimes exploratory wells are plugged and abandoned. If a
commercial reservoir is discovered, development drilling occurs from
a central location(s). See the Alpine Field narrative, for example.
SOURCE Anadarko Petroleum Corporation
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CONTACT:
A. Paul Taylor of Anadarko Petroleum
Corporation, 281-875-1101
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