HOUSTON, Oct. 20 /PRNewswire/ -- Anadarko Petroleum Corporation
(NYSE: APC) today announced that the Company's annual energy production is
expected to grow at an average rate of 18 percent per year, from 48 million
energy equivalent barrels (EEBs) (or 131,500 EEBs per day) in 1998 to an
estimated 92 million EEBs (or 252,000 EEBs per day) in 2002. The Company said
that the new production forecast is based on development of known fields and
does not include any new exploration discoveries.
Commenting on the production forecast, Anadarko Chairman, President and
Chief Executive Officer Robert J. Allison, Jr. said, "Today we're updating a
production estimate that we first revealed in 1996. Many things about
Anadarko have changed since then. Our proved reserves are 50 percent larger
today, and we have new discoveries in Alaska, Algeria and the Gulf of Mexico
that need to be included in the production forecast. These new discoveries
give us a more balanced production profile in the future than our previous
estimate.
"On the other hand, commodity prices have stayed down longer than we'd
like and that keeps us from aggressively exploiting some of our domestic
assets. Plus, even though Algeria reserves and production are larger today
than they were two years ago, the exact timing of future field development in
Algeria is always difficult to predict.
"Despite the downturn in commodity prices, we've continued to deliver
exploration success. I believe our exploration program is the best in the
industry, not only because of the success we've enjoyed, but also because of
the potential upside from projects that we will drill later this year, in 1999
and beyond," said Allison.
A table of the production forecast along with information on Anadarko's
key assumptions is attached.
ANADARKO PETROLEUM CORPORATION
PRODUCTION FORECAST
(In million energy equivalent barrels)
Production Forecast Production Forecast
1996 October 1998
1998 53 48
1999 62 52
2000 76 55
2001 --- 77
2002 --- 92
Key assumptions for the October 1998 production forecast are:
-- This new forecast is based on development of known fields and does not
include any new exploration discoveries. Capital spending is
estimated at about $700 million per year.
-- Continuation of aggressive development and exploitation drilling
projects in the U.S. mid-continent basins of central Oklahoma,
southwest Kansas and east Texas mainly focused on gas during periods
of lower oil prices. New drilling should offset natural declines over
the next four years and hold net onshore production at 33-35 million
EEBs per year.
-- Continued focus on attractive field development projects in
conventional offshore fields, plus continued development of the
Mahogany and Agate sub-salt fields, East Cameron 157 Field and
Matagorda Island 622/623 Field and development of the Tanzanite and
Hickory sub-salt discoveries. Annual net offshore production is
expected to grow from 11 million EEBs in 1998 to 27 million EEBs in
2002.
-- Field development projects in Alaska with annual net production
growing from zero in 1998 to 5 million EEBs in 2002.
-- Continued development to install Stage II production facilities at the
HBNS field in Algeria, as well as initial development and construction
of production facilities at other large oil fields, including the El
Biar Field (formerly HBN), the HBNSE Field, the Qoubba Field and
several smaller satellite fields such as the RBK and BKNE fields.
Gross production is expected to grow from a current rate of
30,000 BO/D to 330,000 BO/D by the end of 2002. Anadarko's net
production in Algeria is expected to grow from 1.5 million EEBs in
1998 to over 25 million EEBs in 2002.
To receive a copy of this table in a color or black and white graph
format, please contact Anadarko at 281-874-1606.
This press release and the accompanying table contain forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 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 under Item 7 of the Form 10-K in the 1997 annual report.
For more information, contact:
Analysts and Investors: Media:
A. Paul Taylor, Jr. Carol L. Cox
Phone: 281-874-3471 Phone: 281-873-3855
Steve C. Campbell
Phone: 281-874-3260
For additional information about Anadarko, please visit the company's Web
site at http://www.anadarko.com on the Internet.
SOURCE Anadarko Petroleum Corporation
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Related links:
http://www.anadarko.com
Company News On-Call:
http://www.prnewswire.com/comp/038950.html or fax,
800-758-5804, ext. 038950
CONTACT:
Analysts and Investors: A. Paul Taylor, Jr.,
281-874-3471, or Steve C. Campbell, 281-874-3260, or Media:
Carol L. Cox, 281-873-3855, all of Anadarko Petroleum Corporation
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