Texas-based Anadarko Petroleum Corporation (APC) recorded impressive results at its first well (Itauna #1) in block BM-C-29, located in about 250 feet of water, offshore Brazil. The Itauna #1 well witnessed over 275 net feet of oil and natural gas pay in two separate post-salt zones.
To date, the well has been drilled to a depth of approximately 15,250 feet with a planned total depth of nearly 18,000 feet. Once activities on this well are completed, the operating rig is scheduled to move to work for another operator. Anadarko expects the rig to return to this block again in 2011 for conducting appraisal activities.
Anadarko has joint ownership with Ecopetrol on the block BM-C-29, with both parties having 50% working interest each. Anadarko acts as the operator on the block.
Anadarko expects to increase the significant post-salt pay count on the block by conducting further studies that should reveal the unconsolidated formations in the existing hole. The company is further drilling to test two targeted pre-salt objectives and expect to complete activities in the well by year-end 2010.
Anadarko continues to swell its existing reserves through discovery of oil and gas in areas it has a working interest. The other recent discoveries include a 135 net feet of oil pay, in Mercury 1, offshore Sierra Leone, discovered in November 2010, a 416 net feet of natural gas pay, in the Offshore Area 1 of Mozambique’s Rovuma Basin, discovered in October, and a 115 net feet of oil pay in the Owo-1 sidetrack well offshore Ghana, found in September.
Anadarko Petroleum is an independent oil and gas company engaged in the acquisition, exploration and production of oil and gas primarily in the United States. The company also has exploration and production assets located in Algeria, Brazil, China, Indonesia, Mozambique and Ghana. The company ended 2009 with a proved reserve of 2.3 billion barrels equivalent.
The adjusted earnings of Anadarko at the end of the third quarter 2010 were 21 cents a share compared with a net loss of 11 cents in the year-ago comparable period. The Zacks Consensus Estimates for fourth quarter 2010, fiscal year 2010 and fiscal year 2011 are 21 cents per share, $1.78 per share and $2.13 per share, respectively.
Anadarko currently retains a Zacks #3 Rank (short-term Hold rating), in line with its closest peers Chevron Corp. (CVX) and Apache Corp. (APA).
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