Anadarko Provides U.S. Onshore Operations Update

Tue Dec 4, 2012 7:30am EST

* Reuters is not responsible for the content in this press release.

  HOUSTON, TX, Dec 04 (Marketwire) -- 
Anadarko Petroleum Corporation (NYSE: APC) today provided an update on
its U.S. onshore activities, announcing that four of its core operating
areas recently surpassed the gross processed production milestone of
100,000 barrels of oil equivalent (BOE) per day. 

    The Wattenberg field in northeastern Colorado, the Eagleford Shale in
southwest Texas, the Greater Natural Buttes area in northeastern Utah and
the Marcellus Shale in north-central Pennsylvania each achieved
production records during the month of November, with all exceeding gross
processed production levels of 100,000 BOE per day. The Wattenberg field
continues to deliver significant growth, with sales volumes expected to
grow more than 10 percent sequentially from the third quarter of this
year. This growth rate is highlighted by the performance of the
horizontal program, which recently established a gross production record
of more than 45,000 BOE per day. Additionally in the field, the company
continues to enhance its capital efficiency by optimizing lateral
lengths, completions stages and well density, while increasing the
footage drilled and reducing drilling cycle times.

    Anadarko's operations in the liquids-rich Eagleford Shale also continue
to exhibit significant growth in sales volumes, while realizing further
improvements in drilling and completions performance. To date in the
fourth quarter of 2012, the company's drilling cycle times have averaged
less than 9.5 days per well, representing a 25-percent improvement
compared to the fourth quarter of 2011, with a recent all-time record of
5.4 days for a 12,000-foot well. Anadarko also continues to achieve
production records in its liquids-rich East Texas horizontal program and
in the Permian Basin's Avalon Shale and Bone Spring plays.

    "Surpassing the milestone of 100,000 BOE per day in four of our core U.S.
onshore operating areas demonstrates the quality, capabilities and
increasing scale of Anadarko's portfolio," said Anadarko President and
CEO Al Walker. "Our ability to continue driving production growth in a
very capital-efficient manner supports our confidence in the portfolio's
ability to deliver full-year sales volumes within guidance (265 to 267
million BOE) on the strength of U.S. oil and natural gas production,
which is expected to offset our decision to reject ethane in certain
fields. Finally, we expect to deliver these results while improving our
direct oil and gas operating costs by an additional 15 cents per BOE in
the fourth-quarter to a new range of $3.90 to $4.00 per BOE."

    Supplemental Information
 Attached to this news release are graphs
illustrating net sales volumes for the Wattenberg field, Eagleford Shale,
Greater Natural Buttes area and Marcellus Shale, as well as an updated
chart of net sales volumes in the Wattenberg Horizontal program. 

    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 2011, the company had approximately 2.54
billion barrels-equivalent of proved reserves, making it one of the
world's largest independent exploration and production companies. For
more information about Anadarko and APC Flash Feed updates, 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 meet its
production and capital expectations and to complete, test and produce the
wells and prospects identified in this news release. See "Risk Factors"
in the company's 2011 Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and other public filings and press releases. Anadarko
undertakes no obligation to publicly update or revise any forward-looking
statements.

    
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Anadarko Contacts 

Media:
John Christiansen
john.christiansen@anadarko.com
832.636.8736

Brian Cain
brian.cain@anadarko.com
832.636.3404

Christina Ramirez
christina.ramirez@anadarko.com
832.636.8687

Investors:
John Colglazier
john.colglazier@anadarko.com
832.636.2306

Wayne Rodrigs
wayne.rodrigs@anadarko.com
832.636.2305

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