Oil and gas company Anadarko Petroleum Corporation (APC) announced the success of its Enyenra-2A (formerly known as Owo) appraisal well, offshore Ghana. The well, which encountered more than 120 net feet of pay, confirms that the Owo discovery is a major “light oil field”.
The drilling results and other data confirm the total net pay at the Enyenra-2A well. The results reveal nearly 105 net feet of oil pay in high-quality sandstone reservoirs located in the upper and lower Enyenra channels, and a new discovery in the Turonian Deep that comprise roughly 16 net feet of condensate pay.
The Enyenra-2A appraisal well is located more than four miles south and down-dip from the original Owo discovery well, in the Deepwater Tano License. The well was drilled to a total depth of about 13,890 feet in water depths of 5,490 feet.
Anadarko believes that the well results are positive as pressure data indicates the upper channel is in contact with the original Owo discovery well. The company said additional analysis is under way to determine the extent and thickness of the newly discovered condensate reservoir in the Turonian Deep.
Anadarko said it will continue the active appraisal and testing program in the Enyenra and adjacent Tweneboa fields, expecting it to become commercial later this year. The company also said it plans to suspend the well for future use on the completion of operations at Enyenra-2A.
The drillship drilling at Enyenra-2A will then move to drill the Tweneboa-4 well, which is also in the Deepwater Tano License.
Anadarko is the owner of an 18% working interest in the Deepwater Tano License. Other owners in the discovery include Tullow Oil plc with a 49.95% working interest (operator), Kosmos Energy with an 18% working interest, Sabre Oil & Gas with a 4.05% working interest and the Ghana National Petroleum Corporation with a 10% carried interest.
Last month, Anadarko discovered another exploration well, the Teak-1 discovery well, offshore Ghana. The Teak-1 well encountered roughly 240 net feet of oil and gas reserves in five separate Campanian and Turonian-age reservoirs.
Of the reserves discovered, nearly 70 net feet of oil pay and almost 108 net feet of natural gas pay are located in the Campanian, and about 46 net feet of gas condensate pay and 16 net feet of oil pay in the Turonian reservoirs of a similar age to the Jubilee field.
Given Anadarko’s large pipeline of growth projects and its continued exploration successes, we believe the company will keep up with its company-wide production growth trend over the next few years. Anadarko expects its 2011 production growth to come from its U.S. onshore oil plays; Shale plays exposure – the Eagleford and Marcellus shale plays, and the ongoing exploration program in Brazil, Africa and Indonesia.
Based in The Woodlands, Texas, Anadarko Petroleum is primarily engaged in the exploration, development, production, gathering, processing and marketing of natural gas, crude oil, condensate and natural gas liquids. Anadarko mainly competes with ConocoPhillips (COP) and Exxon Mobil Corp. (XOM).
We maintain our Neutral recommendation on Anadarko shares. Also, the company retains a short-term Zacks #3 Rank (Hold).
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