Anadarko Announces Discovery Offshore Ghana Plans to Mobilize Rig From Gulf of Mexico to West Africa

HOUSTON, TX -- (Marketwire) -- 03/28/11 -- Anadarko Petroleum Corporation (NYSE: APC) today announced a deepwater discovery at the Teak-2 prospect, located in the West Cape Three Points Block offshore Ghana. The Teak-2 exploration well encountered approximately 90 net feet of high-quality oil, condensate and natural gas pay in stacked Campanian- and Turonian-age reservoirs.

'The Teak-2 discovery is another confirmation of our geologic model that adds to the substantial resource potential of the area and extends the success of our multi-well exploration program on the West Cape Three Points Block,' said Bob Daniels, Anadarko Sr. Vice President, Worldwide Exploration. 'We are very pleased with the results encountered in this discovery, which will be further evaluated with future appraisal activity. We continue to work with our partners and the Republic of Ghana to advance our exploration and appraisal programs, as well as the increasing number of development opportunities in both the West Cape Three Points Block and adjacent Deepwater Tano License.'

The Teak-2 well was drilled to a total depth of 11,185 feet in water depths of approximately 2,900 feet. The well is approximately 5,900 feet southwest and fault separated from Teak-1, and approximately two miles northeast of the Mahogany-2 well. After preserving the well at Teak-2 for future use, the partnership plans to mobilize the rig to drill the Banda prospect, also located in the West Cape Three Points Block.

Anadarko owns a 30.875-percent working interest in the West Cape Three Points Block, which is operated by Kosmos Energy (30.875-percent working interest). Other co-owners in the block include Tullow Oil plc (22.896-percent working interest), the E.O. Group (3.5-percent working interest), Sabre Oil & Gas Holdings Ltd (1.854-percent working interest) and the Ghana National Petroleum Corporation (10-percent carried interest).

West Africa Exploration Update

Anadarko has finalized plans for its previously announced 2011 drilling campaign in the Liberian Basin. To carry out this program, Anadarko intends to mobilize the Discoverer Spirit drillship from the Gulf of Mexico to West Africa after it finishes completion activities on the third Caesar/Tonga well. Subject to the finalization of a contract amendment with the rig owner, the Discoverer Spirit is expected to begin drilling in West Africa during the third quarter.

As part of this program, Anadarko plans to drill its first Mercury appraisal well, located approximately seven miles west of the Mercury discovery well offshore Sierra Leone in Block SL-07B-10. In addition, the company plans to drill the Jupiter exploration prospect on the same block later in the year. Anadarko operates Block SL-07B-10 with a 65-percent working interest.

Offshore Liberia, the company plans to drill the Montserrado exploration well on Block 15, which is operated by Anadarko with a 57.5-percent working interest. Further to the east, on Block 10, Anadarko recently completed the acquisition of a 2,400-square-kilometer 3D seismic survey. Processing of the survey is expected to take approximately six to nine months, and with the acquisition of this data, Anadarko will have 3D seismic information covering virtually all of its acreage in the Liberian Basin.

'Mobilizing the Discoverer Spirit to West Africa ensures our ability to deliver upon our exploration and appraisal programs in a timely fashion in an area that offers tremendous potential with more than 30 identified Jubilee-like prospects on our acreage,' said Al Walker, Anadarko President and Chief Operating Officer. 'We plan to keep the ENSCO 8500 rig in the Gulf of Mexico to conduct an extended well test at Lucius and, once we receive drilling permits, we are confident that we will be able to utilize the ENSCO 8500 and contract a deepwater rig of opportunity to resume our development and exploration programs in the Gulf.'

Maps of the Teak-2 discovery offshore Ghana and Anadarko's planned 2011 activity offshore Sierra Leone and Liberia 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 receive the necessary drilling permits in the Gulf of Mexico, finalize the amendment to the Discoverer Spirit rig contract, access the open rig market and 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


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