Oil and natural gas exploration and production company, Anadarko Petroleum Corporation (APC) announced that it made a deepwater discovery in its Teak-2 prospect, located in the West Cape Three Points Block, offshore Ghana. The well discovered approximately 90 net feet of high-quality oil, condensate and natural gas pay.
The exploration well, drilled at a total depth of approximately 11,185 feet, encountered about 2,900 feet of water. The new find is located near the previous drilling success of the company, namely Teak 1 and Mahogany-2 well. The Teak 2 discovery is likely to be reserved by the company for future use.
Anadarko is working in a partnership with four other players in the Teak-2 prospect and has a 30.875% working interest. The working interest of the other players varies from 1.854% for Sabre Oil & Gas Holdings Ltd. to 30.875% for Kosmos Energy.
Anadarko continues to enjoy repeated drilling success in West Africa, particularly in offshore Ghana. The previous find for Anadarko was the Enyenra-2A appraisal well offshore Ghana, which encountered more than 120 net feet of oil and condensate pay, in this very month. In February, the company made a discovery in its Teak-1 prospect offshore Ghana that encountered about 240 net feet of oil, condensate and natural gas pay.
Anadarko has plans to explore additional prospects in the West African nations and for this purpose will move its drillship Discoverer Spirit from the Gulf of Mexico to West Africa. The company will drill the first Mercury appraisal well located in offshore Sierra Leone and also drill the Montserrado exploration well on Block 15 in offshore Liberia.
Anadarko currently retains a Zacks #3 Rank (short-term Hold rating). We maintain a Neutral rating on the stock. The major peers of the company are ConocoPhillips (COP) and Exxon Mobil Corp. (XOM).
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 2010 with a proved reserve of 2.42 billion barrels of oil equivalent.
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