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|Anadarko Expands Its Exploration Frontier in Indonesia|
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HOUSTON, Jul 26, 2005 (BUSINESS WIRE) -- Anadarko Petroleum Corporation (NYSE:APC)
-- EXPLORATION JOINT VENTURE AGREEMENT REACHED WITH MEDCO ENERGI
-- PROVIDES ANADARKO ACCESS TO NEARLY 8 MILLION ACRES ON & OFFSHORE INDONESIA
Anadarko Petroleum Corporation (NYSE:APC) has significantly increased its access to exploration acreage in Indonesia through an exploration joint venture agreement with Medco Energi International, Indonesia's largest independent exploration and production company.
Under the agreement, Anadarko subsidiaries are gaining access to 13 production sharing contracts totaling 7.8 million acres onshore and offshore Sumatra, Kalimantan, Sulawesi, Java and Papua. Anadarko has committed to a three-year work program to fund exploration activities at a cost of U.S. $80 million, subject to the satisfaction of certain conditions. Anadarko has the opportunity to earn up to a 40 percent interest in each production sharing contract where a successful exploration well is drilled at Anadarko's cost and a plan of development is approved.
"Anadarko is very pleased to have reached this joint venture because it provides access to a large amount of highly prospective acreage in prolific basins across Indonesia where we look forward to applying our proven exploration expertise," said Bob Daniels, Anadarko Senior Vice President, Exploration & Production. "Medco Energi is a very experienced Indonesian operator, and this agreement, coupled with the offshore block we are currently exploring, strengthens Anadarko's commitment to the region and provides Anadarko a stronger foothold from which to explore in a proven hydrocarbon province."
In December 2004, Anadarko was awarded exploration and production rights to the North East Madura III (NEM III) Block by the Government of Indonesia. Anadarko recently opened an office in Jakarta, Indonesia and is preparing to drill the initial two wells on the NEM III block.
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by developing, acquiring and exploring for oil and gas resources vital to the world's health and welfare. As of year-end 2004, the company had 2.37 billion barrels of oil equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. Anadarko's operational focus in North America extends from the deepwater Gulf of Mexico, up through Texas, Louisiana, the Mid-Continent, western U.S. and Canadian Rockies and onto the North Slope of Alaska. Anadarko also has significant production in Algeria, Venezuela and Qatar, and exploration or production positions in several other countries. For more information about how Anadarko is bringing excellence to the surface, please visit: www.anadarko.com.
This news 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 of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this presentation. 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. Anadarko discloses proved reserves that comply with the SEC's definitions. Additionally, Anadarko may refer to potential resources and net risked resource potential, which are inherently more uncertain than proved reserves and are not allowed to be included in filings with the SEC. See "Regulatory Matters and Additional Factors Affecting Business" in the Management's Discussion and Analysis (MD&A) included in the company's Annual Report on Form 10-K.
SOURCE: Anadarko Petroleum Corporation
Anadarko Petroleum Corporation, Houston