Oil and natural gas exploration and production company, Anadarko Petroleum Corporation (APC), announced that it has made another discovery of natural gas in the Offshore Area 1 of Mozambique’s Rovuma Basin at the Lagosta prospect.
This is the third major discovery for Anadarko in this region. The discovery well encountered a total of more than 550 net feet of natural gas play in multiple high-quality Oligocene and Eocene sands.
Anadarko is working in a partnership with five other players in the Offshore Area 1 of Mozambique and has a 36.5% working interest. The working interest of the other players ranges from Cove Energy Mozambique Rovuma Offshore Ltd. (8.5% working interest) to Mitsui E&P Mozambique Area 1, Limited (20% working interest).
The exploration wells, drilled at a total depth of approximately 13,850 feet, encountered about 5,080 feet of water. The partnership is planning to drill further at a total depth of 15,900 feet to evaluate the prospects at a deeper zone.
The new Lagosta discovery is located 16 miles to the south of the Barquentine discovery and 14 miles to the southeast of the Windjammer discovery. After completing the work on Lagosta, the partnership is planning to mobilize the rig 17.5 miles to the southwest to drill the Tubarao exploration well, which is also located in the 2.6-million-acre Offshore Area 1.
The company continues to boost its existing reserves through the finding of oil and gas in areas it has a working interest. Recently, the company announced a 135-net feet of oil play in offshore Sierra Leone. Another recent discovery was a 416-net feet of natural gas play, in the Offshore Area 1 of Mozambique’s Rovuma Basin, discovered on October 19, 2010.
Anadarko currently retains a Zacks #3 Rank (short-term Hold rating). We maintain a Neutral rating on the stock.
On a competitive landscape the operating margins of the company fared better than its peers – BP plc (BP), ConocoPhillips (COP) and Exxon Mobil Corporation (XOM) – in the trailing twelve months.
Based in Texas, 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 deepwater Gulf of Mexico, and Algeria. The company ended 2009 with a proved reserve of 2.3 billion barrels of oil equivalent.
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