HOUSTON--(Business Wire)--
Anadarko Petroleum Corporation (NYSE:APC) today announced the
details of its 2008 capital budget and provided production estimates
for 2008. Anadarko's Board of Directors has approved total capital
expenditures, including expensed exploration, of $4.5 to $4.7 billion.
The capital program includes approximately 20% for exploration
activities.
"Anadarko's 2008 capital program is geared toward accelerating the
value of the more than 7 billion BOE (barrels of oil equivalent) in
net risked captured resources in our asset base," said Jim Hackett,
Anadarko President, Chairman and CEO. "Exploration remains a key
component of the program, which also leverages our industry-leading
deepwater rig position, hub-and-spoke infrastructure in the Gulf of
Mexico and extensive midstream position onshore. Through a combination
of our product hedging strategy, basis swaps and firm transportation
commitments, we've reduced risk and ensured that we will have adequate
cash flow to fund our capital program while continuing to reduce
leverage. A focus on capital efficiency, reduced costs and reserve
growth will continue to drive our investment decisions and portfolio
management."
The company also increased its guidance for expected 2008 oil and
natural gas production to the range of 205 to 210 million barrels of
oil equivalent, as detailed in the guidance schedule attached to
Anadarko's fourth-quarter and year-end 2007 earnings release.
CAPITAL ALLOCATION BY AREA
Anadarko's capital budget for 2008 reflects the company's
commitment to accelerate the value of its net risked captured
resources with a particular emphasis on achieving double-digit
production growth in the Rocky Mountain region, continuing development
in the deepwater Gulf of Mexico, including the start-up of the Blind
Faith platform, driving toward first production at the Peregrino field
offshore Brazil and extending the company's deepwater exploration
activities worldwide. An approximate breakout of the company's 2008
capital budget by area is provided below:
-- 30% Rocky Mountains
-- 20% Southern U.S.
-- 25% Deepwater Gulf of Mexico
-- 15% International and Frontier
-- 10% Midstream
U.S. Onshore
The majority of the 2008 budget will focus on Anadarko's inventory
of development opportunities in the resource plays of the Rocky
Mountain and Southern regions. Approximately 2,700 to 3,000 U.S.
onshore development wells are planned in 2008, comprised of
approximately 85% in the Greater Natural Buttes, Wattenberg, Powder
River Basin and other areas in the Rocky Mountains, and approximately
15% in the company's Southern region including the Delaware Basin,
eastern Chalk and Carthage areas of Texas.
Anadarko has identified thousands of low-risk opportunities
onshore in the U.S., including infill drilling, re-completions and
other repeatable projects capable of delivering double-digit
production growth in the Rocky Mountain region for years to come.
During 2007, the company also expanded its midstream infrastructure in
the Rockies to enhance its ability to execute upon its development and
production activities. Two major projects scheduled to commence in
2008 will further expand processing and gathering capabilities in the
area. The first involves the second-phase expansion of the Chapita
plant in Greater Natural Buttes, which will add a cryogenic processing
facility that will double Chapita's current processing capacity to 500
million cubic feet per day (MMcf/d). The other significant project
will add 400 MMcf/d of gathering capacity at the Fort Union system,
bringing its total capacity to 1.3 billion cubic feet per day (Bcf/d)
and making it the largest capacity gathering system in the Powder
River Basin.
Deepwater Gulf of Mexico
The company's 2008 capital for the deepwater Gulf of Mexico is
primarily focused on development drilling, with a particular focus on
the eastern Gulf of Mexico and the K2 unit. In 2008, Anadarko also
anticipates drilling approximately six to eight exploration and
appraisal wells targeting Miocene and Lower Tertiary objectives.
International/Frontier
Anadarko has allocated the majority of its international capital
toward advancing projects in Brazil, Alaska, Algeria and China.
Anadarko also expects to increase its international exploration and
appraisal activities in 2008 - the majority of which will be focused
on deepwater opportunities in West Africa, Brazil and in the South
China Sea.
"We are confident that our 2008 capital program will again deliver
solid performance," said Anadarko Chief Operating Officer Karl Kurz.
"Our operations in the Rocky Mountains continue to drive predictable
production growth and reserve replacement. In 2008, we will also
benefit from a full year's production at Independence Hub, and we have
significant development projects ongoing at the Peregrino field
offshore Brazil and the Blind Faith field in the deepwater Gulf of
Mexico. Blind Faith is scheduled to come on line this year. In
addition, we are well positioned to transfer our skill sets and
expertise from the deepwater Gulf of Mexico to other deepwater areas
offshore Brazil, West Africa and the South China Sea."
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. 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 meet its production guidance, identify and
execute on exploration and drilling opportunities, and complete the
projects identified in this news release. See "Risk Factors" in the
company's 2006 Annual Report on Form 10-K and other public filings and
press releases. Anadarko undertakes no obligation to publicly update
or revise any forward-looking statements.
Cautionary Note to U.S. Investors: The United States Securities
and Exchange Commission permits oil and gas companies, in their
filings with the SEC, to disclose only proved reserves that a company
has demonstrated by actual production or conclusive formation tests to
be economically and legally producible under existing economic and
operating conditions. We use certain terms in this news release, such
as "net risked captured resources," that the SEC's guidelines strictly
prohibit us from including in filings with the SEC. U.S. Investors are
urged to consider closely the disclosure in our Form 10-K for the year
ended Dec. 31, 2006, File No. 001-08968, available from us at
www.anadarko.com or by writing us at: Anadarko Petroleum Corporation,
1201 Lake Robbins Drive, The Woodlands, Texas 77380 Attn: Investor
Relations. You can also obtain this form from the SEC by calling
1-800-SEC-0330.
Anadarko Petroleum Corporation
Media:
John Christiansen, 832-636-8736
john.christiansen@anadarko.com
or
Paula Beasley, 832-636-8765
paula.beasley@anadarko.com
or
Investors:
John Colglazier, 832-636-2306
john.colglazier@anadarko.com
or
Chris Campbell, CFA, 832-636-8434
chris.campbell@anadarko.com
or
Kristin Stomberg, 832-636-1156
kristin.stomberg@anadarko.com
Copyright Business Wire 2008
