Anadarko Announces Major Discovery Offshore Mozambique

Anadarko Petroleum Corporation today announced its third major natural gas discovery this year in the Offshore Area 1 of Mozambique’s Rovuma Basin at the Lagosta prospect. The discovery well encountered a total of more than 550 net feet of natural gas pay in multiple high-quality Oligocene and Eocene sands.

“The Lagosta discovery, located approximately 16 miles to the south of the previously announced Barquentine discovery and 14 miles to the southeast of the Windjammer discovery, significantly expands this emerging world-class natural gas province,” Anadarko Sr. Vice President, Worldwide Exploration Bob Daniels said. “The Lagosta discovery continues to validate our geophysical models, and we expect to keep the Belford Dolphin drillship in the basin for the foreseeable future to continue a very active exploration and appraisal program, including at least one planned drillstem test in 2011.

“Although additional appraisal drilling will be required, we believe the three discoveries announced to date already exceed the resource size threshold necessary to support an LNG (liquefied natural gas) development, and we have assigned an integrated project team to begin advancing commercialization options. Given the global LNG trade and its indexing to the global crude market, this resource can provide tremendous economic value for the people of Mozambique, the government and the partnership,” added Daniels.

The Lagosta exploration well has been drilled to a current depth of approximately 13,850 feet in water depths of approximately 5,080 feet. The partnership plans to drill to a total depth of approximately 15,900 feet to evaluate a deeper zone. Once operations are complete at Lagosta, the partnership expects to mobilize the rig 17.5 miles to the southwest to drill the Tubarao exploration well, which also is located in the 2.6-million-acre Offshore Area 1.

Anadarko is the operator of Offshore Area 1 with a 36.5-percent working interest. Co-owners in the area are Mitsui E&P Mozambique Area 1, Limited (20 percent), BPRL Ventures Mozambique B.V. (10 percent), Videocon Mozambique Rovuma 1 Limited (10 percent) and Cove Energy Mozambique Rovuma Offshore, Ltd. (8.5 percent). Empresa Nacional de Hidrocarbonetos, ep’s 15-percent interest is carried through the exploration phase.

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 2009, the company had approximately 2.3 billion barrels-equivalent of proved reserves, making it one of the world’s largest independent exploration and production companies.

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Source: Anadarko Petroleum, November 29, 2010