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|Anadarko Reports Outstanding Central Texas Well Results; Perseverance Uncovers New Upside Potential and Valuable Natural Gas|
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HOUSTON, April 3 -- As America's demand for natural gas continues to increase, Anadarko Petroleum Corporation (NYSE: APC) is working hard to produce new reserves from old fields. Today the company announced results from the Fife Unit No. 2 well in Central Texas, which flowed natural gas at a rate of 51 million cubic feet per day with 1,510 pounds of tubing pressure.
The Fife well, located in the Navasota River field of Washington County, Texas, reached a total vertical depth of 14,080 feet, then was drilled laterally for almost 5,000 feet. The well, in which Anadarko has a 100 percent working interest, began producing March 24.
"The Giddings area is a prime example of how perseverance pays off," said John N. Seitz, Anadarko President and Chief Operating Officer. "Although this play has been around for a long time -- and perhaps misunderstood in the past -- Anadarko has revitalized the area and is producing sustained volumes of much needed natural gas.
"By drilling deeper, we're finding much stronger results than anyone previously thought were possible," he said.
The company's net volumes in Central Texas have swelled to more than 235 million cubic feet (MMcf) of gas per day and 14,700 barrels of oil per day. Currently, Anadarko has nine rigs operating throughout its Central Texas play, including the natural gas-rich Georgetown formation and the Buda formation, which produces gas and oil.
The Fife well is a confirmation of the nearby Becker No. 1 Georgetown re- entry discovery drilled by Anadarko in 2000. The Becker No. 1, which has produced at a rate of 50 MMcf/d, is still a strong well producing 25 MMcf/d. Its cumulative production since being redrilled in July 2000 is 5.7 Bcf. Three more wells and one re-entry well are currently under way in the immediate vicinity.
Of the 130 development wells planned for 2001 in the Giddings field, two- thirds will be re-entries of existing wells. By re-entering and recompleting old wells -- and drilling deeper to the Georgetown and Buda formations -- the company is tapping new reserves at very economical costs.
The company holds 750,000 net acres in the greater Giddings area and operates more than 1,200 wells, giving Anadarko significant potential to exploit deeper opportunities through horizontal re-entries.
"We're putting our intellectual capital to work, finding new ways to produce more natural gas," Seitz said. "As one of the most active drillers in North America, Anadarko is definitely doing its part to help balance the domestic natural gas market."
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 one of the most active drillers in North America. Internationally Anadarko is active in Canada, Algeria, Tunisia, West Africa, Guatemala, Venezuela, Georgia and the North Atlantic.
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
CONTACT: media, Lee Warren, 281-874-3321, or Teresa Wong, 281-873-1203, or investors, Paul Taylor, 281-874-3471, or David Larson, 281-874-3265, all of Anadarko Petroleum Corporation