Anadarko Announces Lucius Unitization
July 18 2011 - 7:15AM
Marketwired
Anadarko Petroleum Corporation (NYSE: APC) today announced the
finalization of a unitization agreement with Exxon Mobil
Corporation and co-owners to develop the Lucius field. The
unitization includes portions of Keathley Canyon blocks 874, 875,
918 and 919 in the deepwater Gulf of Mexico. Anadarko will operate
the unit with a 35-percent working interest. Following the
unitization agreement, the Lucius interest owners entered into an
agreement with the Hadrian South co-venturers whereby natural gas
produced from the Hadrian South field will be processed through the
Lucius facility in return for a production-handling fee and
reimbursement for any required facility upgrades.
"As a result of these agreements, we expect Lucius to be among
the most economically efficient projects in our portfolio, while
providing important infrastructure in an emerging area of the Gulf
of Mexico," said Al Walker, Anadarko President and Chief Operating
Officer. "We've already placed orders for the long-lead items,
including the truss spar floating production facility, which will
have a capacity of more than 80,000 barrels of oil per day (BOPD)
and 450 million cubic feet of natural gas per day. We look forward
to working with our new co-owners and anticipate sanctioning the
project later this year, with first production expected in
2014."
Anadarko and the co-owners also recently completed an extended
well test at the Lucius discovery that provided assurance regarding
the flow rates and excellent reservoir characteristics of the
field. With equipment-constrained rates in excess of 15,000 BOPD of
high-quality oil (29° API gravity), the test provided additional
confidence in Anadarko's previous resource estimates and indicated
that Lucius can be developed with a minimal number of wells.
Co-owners in the Lucius unit include Plains Exploration &
Production Company (NYSE: PXP) with a 23.3-percent working
interest; Exxon Mobil Corporation (NYSE: XOM) with a 15-percent
working interest; Apache Deepwater LLC, a subsidiary of Apache
Corporation (NYSE: APA) (NASDAQ: APA) with an 11.7-percent working
interest; Petrobras with a 9.6-percent working interest; and Eni
Petroleum with a 5.4-percent working interest.
A map of Lucius will be available under the "Media
Center/Anadarko News" tab at www.anadarko.com.
Anadarko Petroleum Corporation's mission is to deliver a
competitive and sustainable rate of return to shareholders by
exploring for, acquiring and developing oil and natural gas
resources vital to the world's health and welfare. As of year-end
2010, the company had approximately 2.42 billion barrels-equivalent
of proved reserves, making it one of the world's largest
independent exploration and production companies. For more
information about Anadarko, 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 news release, including
Anadarko's ability to successfully sanction the Lucius project,
achieve first production and receive the necessary permits in the
Gulf of Mexico to successfully drill, complete, test and produce
the wells and prospects identified in this news release. See "Risk
Factors" in the company's 2010 Annual Report on Form 10-K and other
public filings and press releases. Readers are cautioned not to
place undue reliance on forward-looking statements, which speak
only as of the date hereof. Anadarko undertakes no obligation to
publicly update or revise any forward-looking statements.
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Anadarko Contacts Media: John Christiansen Email
Contact 832.636.8736 Brian Cain Email Contact 832.636.3404
Investors: John Colglazier Email Contact 832.636.2306 Clay
Gaspar Email Contact 832.636.2541 Wayne Rodrigs Email Contact
832.636.2305
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