Anadarko makes third deep-water discovery in eastern Gulf of Mexico

Nov 14, 2003 01:00 AM

Anadarko Petroleum has made its third deep-water discovery in the eastern Gulf of Mexico on its Spiderman prospect, the company said.
The discovery well was drilled in 8,100 feet of water to a depth of 18,065 feet. Production from this find could help cement plans by Anadarko and others to build a production hub facility in the area that would also service previous discoveries at the Jubilee and Atlas prospects, among others.

Since the eastern Gulf is a relatively new area for oil and gas exploration and production, it needs production facilities and pipelines to bring oil and natural gas to shore. Anadarko has been in discussions with potential partners for such a production facility.
"We are talking to our partners and other companies that have production in the area," Anadarko spokeswoman Margaret Cooper said.

Other producers in the area are BP, Devon Energy, Kerr McGee and BHP Billiton. GulfTerra Energy Partners also has been mentioned as a possible partner in a facility. GulfTerra owns and operates numerous pipelines and platforms in the Gulf. The news of the discovery sent Anadarko's shares up, but it gave a bigger boost to one of Anadarko's partners in the project, Spinnaker Exploration.
Last month, the company said Atlas and Jubilee have commercial potential. Jubilee is estimated to hold reserves equivalent to 40 mm to 50 mm barrels of oil. The pre-drill target for Spiderman was 325 bn cf of gas, according to a recent report by Sanders Morris Harris analyst Irene Haas.

"Anadarko made an early commitment to the Eastern Gulf, and we're seeing that pay off with our third discovery there this year," Jim Emme, Anadarko's vice president of exploration. "We have a large inventory of prospects in the Eastern Gulf, and we expect this area to become an important part of Anadarko's worldwide growth portfolio."
Anadarko's existing discoveries, Emme said, are enough to justify building a hub for the three fields. "We believe our existing discoveries support a commercial project, and with each new discovery, the economics of producing from the Eastern Gulf just get better and better," he said.

The well is on DeSoto Canyon block 621, about 180 miles southeast of New Orleans. Anadarko is the operator of Spiderman and holds a 45 % working interest. Dominion Exploration & Production holds 36.67 % and Spinnaker holds 18.33 %.
Spinnaker owns a 33.33 % working interest in two nearby and related prospects, San Jacinto and Niobrara. An appraisal well should commence at San Jacinto in early 2004, the company said.

Source: Houston Chronicle
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