Anadarko CEO: 'Very Excited" About West Africa Oil Discovery
September 17 2009 - 2:45PM
Dow Jones News
Anadarko Petroleum Corp.'s (APC) Chief Executive said Thursday
the independent oil and gas producer is very optimistic about the
potential of its new oil discovery off the coast of Sierra Leone
and confirmed the existence of an active petroleum system in the
area.
"We're very, very excited about the potential this brings,"
Chief Executive James Hackett told Dow Jones, referring to the
Venus discovery, which is the first deepwater test in the Sierra
Leone-Liberian Basin.
Venus was drilled to a total depth of approximately 18,500 feet
in about 5,900 feet of water and encountered more than 45 net feet
of hydrocarbon pay.
With the success of the Venus well at the western limit in
Sierra Leone and the 1.2 billion barrel Jubilee field already
discovered in Ghana at the eastern limit of the system, Anadarko is
highly optimistic about the potential for further discoveries in
the area.
"It's a fantastic thing for the company," Hackett said.
But the executive disclosed few details about the implications
these discoveries could have for the company. Asked about the
possibility that the discoveries would make the Texas-based firm
the target of a takeover, Hackett said he is running the company
"to be compelling to investors." He declined to comment on the
possibility that Anadarko has solicited any interest.
The company, which announced the Venus discovery Wednesday, has
not provided yet important details of the resource found, such us
the gravity and viscosity of the oil, information that would help
to calculate the total potential of the basin.
"This is encouraging but it's just one well," said Bob Fryklund,
an oil consultant at IHS Inc. "We need to look and see if these
prospects prove up to be commercial."
Anadarko operates the Venus well, with a 40% interest. Its
co-owners are Woodside Petroleum Ltd (WPL.AU) of Australia, with
25%, Spain's Repsol YPF SA (REP.MC), with 25%, and Tullow, with
10%.
Hackett was also upbeat about the potential of Anadarko's
properties in the deepwater of the Gulf of Mexico, where the
company has made four discoveries this year.
Anadarko is a leaseholder in the Lower Tertiary trend, a rock
bed in the Gulf of Mexico that runs miles below the sea floor. The
area was brought into focus early this month when oil giant BP PLC
(BP) announced that its Tiber prospect may contain more than 3
billion barrels of oil, one of the biggest discoveries ever in the
Gulf of Mexico.
Anadarko is set to drill an appraisal well this month at its
Rickenbacker prospect in the Keathely Canyon, where BP's find is
located.
"We've got a lot of plays and a lot of drilling to do in that
same territory," Hackett said. "It's U.S. oil, and we love
that."
Anadarko's shares were trading down 14 cents, or 0.22%, to
$67.71.
-By Ian Talley, Dow Jones Newswires; 202-862-9285;
ian.talley@dowjones.com
-By Isabel Ordonez; at Dow Jones Newswires; 713.547.9207;
isabel.ordonez@dowjones.com
(James Herron in London contributed to this story)