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Investor Relations:
John ColglazierVice [email protected]
Chris Campbell, [email protected]
Danny [email protected]
Operations Report2008 ANADARKO PETROLEUM CORPORATION
Third Quarter
Forward Looking Statement . . . 2
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Drilling Efficiencies . . . . . . . . . . . . . . 4
Rockies . . . . . . . . . . . . . . . . . . . . . . . . . 5-6
Southern. . . . . . . . . . . . . . . . . . . . . . . . 7-8
Gulf of Mexico. . . . . . . . . . . . . . . . . 9-13
International / Frontier . . . . . . 14-16
NYSE:APC www.anadarko.com
NYSE:APC www.anadarko.com 2
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION
Forward Looking Statement
Cautionary Note to U.S. Investors: The United States Securities This report contains forward-looking statements within the and Exchange Commission (“SEC”) permits oil and gas meaning of Section 27A of the Securities Act of 1933 and Section companies, in their filings with the SEC, to disclose only proved 21E of the Securities Exchange Act of 1934. Anadarko believes reserves that a company has demonstrated by actual production or that its expectations are based on reasonable assumptions. No conclusive formation tests to be economically and legally assurance, however, can be given that such expectations will prove producible under existing economic and operating conditions. to have been correct. A number of factors could cause actual results Anadarko uses certain terms in this operations report, such as to differ materially from the projections, anticipated results or “estimated recoverable resources,” “recoverable oil” and similar other expectations expressed in this operations report. Anadarko terms that the SEC’s guidelines strictly prohibit Anadarko from cannot guarantee that it will successfully execute on its including in filings with the SEC. U.S. Investors are urged to exploration, drilling and development plans or meet its consider closely the disclosure in Anadarko’s Form 10-K for the production guidance. See “Risk Factors” in the company’s 2007 year ended December 31, 2007, File No. 001-08968, available from Annual Report on Form 10-K and other public filings and press Anadarko at www.anadarko.com or by writing Anadarko at: releases. Anadarko undertakes no obligation to publicly update or Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The revise any forward-looking statements.Woodlands, Texas 77380 Attn: Investor Relations. You can also obtain this form from the SEC by calling 1-800-SEC-0330.
NYSE:APC www.anadarko.com 3
Overview
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION
– RIG ACTIVITY –
– CAPITAL SPENDING –
– VOLUMES –
!
!
The capital program totaled $1,181 million during the quarter. Full-year capital expenditures are expected to be between $4,650 and $4,750 million (excluding expensed exploration) with approximately 20% allocated to exploration.
rdSales volumes for the 3 Qtr were 51 MMBOE, which was within guidance (51-53 MMBOE), overcoming approximately 4.7 MMBOE of storm-related shut-ins during the period.
Rockies
Southern
LOWER 48
Alaska
Gulf of Mexico
TOTAL U.S.
INTERNATIONAL
Midstream
Capitalized Items / Other
TOTAL COMPANY
3Q08
$ MM
422
282
704
10
196
910
99
109
63
1,181
2Q08
$ MM
Capital Spending*
338
272
609
30
289
928
100
133
71
1,232
3Q08 2Q08 3Q07** vs. 2Q08
Net Volumes (MMBOE)*
Rockies
Southern
LOWER 48
Alaska
Gulf of Mexico
TOTAL U.S.
INTERNATIONAL
TOTAL COMPANY
17
11
27
2
10
39
7
47
3Q08
% Change
20
10
30
2
12
43
7
51
0%
-6%
-2%
-12%
6%
0%
8%
1%
20
11
31
2
11
44
7
50
*Data may not add to totals due to rounding. * Data may not add to totals due to rounding.** 3Q07 volumes exclude divested volumes.
vs. 3Q07
18%
-3%
10%
-16%
17%
10%
5%
9%
Rockies
Southern
LOWER 48
Alaska
Gulf of Mexico
TOTAL U.S.
INTERNATIONAL
TOTAL COMPANY
Total
100
39
139
2
5
146
5
151
Non-Operated
3Q08 Rig Activity
68
12
80
1
1
82
2
84
Operated
32
27
59
1
4
64
3
67
NYSE:APC www.anadarko.com 4
Drilling Efficiencies
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION
– DRILLING EFFICIENCIES–
Anadarko has greatly enhanced drilling efficiencies across all of the company-operated, major development-drilling programs that utilize day-rate contracts. Increasing efficiencies in these major programs has enabled Anadarko to execute upon the programs without increasing capital during historic inflation in the industry. The chart above shows nearly double-digit improvement in each area in 2008 when compared to 2007 results.
Greater Natural Buttes
Wattenberg
Carthage
Chalk
Freestone
Spudto Spud
8%
17%
21%
7%
16%
RigMobilization
3Q08 Drilling Efficiencies*
23%
48%
24%
16%
28%
Spud toRig Release
2%
10%
20%
7%
14%
* Percent change from 2007 results. Note: Company-operated development-drilling programs with at least three rigs on day rate contracts.
NYSE:APC www.anadarko.com 5
Rockies
Monell
HelperWattenberg
Atlantic Rim
GreaterNatural Buttes
Pinedale
Wamsutter
Salt Creek
Powder River CBM
Tight Gas CBMEOR
MonellMoxa
WYOMING
UTAH COLORADO
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION
TIGHT GAS
Wattenberg
Pinedale
Wamsutter
Other
CBM
EOR
TOTAL
Greater Natural Buttes
3Q08
$ MM
Capital*
MMcf/d MBbls/dMMcf/d MBbls/d
2Q083Q08
Net Volumes*
120
103
44
35
17
70
33
422
261
165
54
78
71
378
4
1,011
3
20
1
7
3
0
12
46
240
174
73
70
68
379
4
1,008
4
19
1
7
4
0
12
46
Oper. Non-Op. Expl. Dev.
3Q083Q08
Rig Activity Completed WellsGross
7
8
0
1
0
15
1
32
1
1
28
7
4
27
0
68
0
0
0
0
0
0
0
0
96
111
62
49
23
287
4
632
– TIGHT GAS DEVELOPMENT –
Wattenberg
Greater Natural Buttes
!
!
Drilling efficiencies continued as 96 wells were completed during the quarter – an increase of 43% from last quarter, while running seven operated rigs compared to eight operated rigs last quarter.
rdIn the 3 Qtr, Anadarko drilled 104 wells and performed 311 fracs, ndsurpassing previous records set in the 2 Qtr. Anadarko is currently
running eight drilling rigs and is on pace to drill more than 380 wells and perform more than 1,100 fracs this year – a 60% increase over
Greater Natural Buttes achieved another great quarter – growing 2007. Planned annual third-party plant maintenance resulted in a nd stvolumes 9% from the 2 Qtr and 19% from the 1 Qtr, with a new two-week production curtailment.
gross-operated production record of 330 MMcf/d.
!
*Data may not add to totals due to rounding.
NYSE:APC www.anadarko.com 6
Rockies
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION
– COALBED METHANE DEVELOPMENT – – GREATER GREEN RIVER BASIN –
– ENHANCED OIL RECOVERY –
!
!
! !
!
!
!
Several sales-volumes records were set in September in the Powder River Basin (PRB), where volumes rebounded quickly following two separate maintenance events on the WIC pipeline system in August Anadarko continues to participate in an active program with 28 rigs and early September. Gross sales (operated and non-operated) currently running in the Pinedale area. Along with our partners, exceeded 800 MMcf/d and gross operated sales achieved a single-day Anadarko spud 202 wells and completed 169 wells through the end of
rdhigh of 430 MMcf/d. the 3 Qtr.
PRB development activity accelerated throughout the quarter, The Bureau of Land Management issued a Record of Decision for the following the end of seasonal wildlife stipulations. Anadarko and its Pinedale Final Environmental Impact Statement (FEIS) on Sept. 12 partner had a combined total of 37 rigs drilling on operated and non- that provides for year-round drilling and completion activity, which operated properties by the end of September. A total of 285 wells were should result in increased future activity.spud during the quarter, an average of over three wells per day.
Operators shut in approximately 23 MMmcf/d net to Anadarko because of low prices during September, while maintenance was performed on REX. Production has since been restored.
Rockies EOR properties surpassed the 10 MMBO cumulative production milestone from CO operations and are currently In the Wamsutter/Moxa areas, 31 Anadarko-operated wells and 162 2
non-operated wells have been drilled year to date.producing over 10,000 Bbl/d.
Pinedale
Wamsutter / Moxa
NYSE:APC www.anadarko.com 7
Southern
CarthageBossier
East Chalk
South Texas
Haley
Ozona Tight Gas
Fractured Reservoirs
Other
Hugoton
Maverick
Marcellus
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION
Haynesville
Haley
Ozona
Mid-Continent
Bossier
Carthage
Chalk
S. Texas / Other
TOTAL
3Q08
$ MM Oper. Non-Op Expl. Dev.
3Q083Q08
Capital* Rig Activity Completed WellsGross
MMcf/d MBbls/dMMcf/d MBbls/d
2Q083Q08
Net Volumes*
56
3
4
28
67
60
64
282
5
1
0
3
5
8
5
27
3
0
0
1
2
2
4
12
0
0
0
0
0
0
0
0
6
9
1
4
31
5
13
69
90
32
56
145
85
41
84
532
1
1
2
0
5
11
5
25
84
41
59
156
82
44
92
557
0
1
1
0
5
12
5
24
The Chalk team continued an active drilling program with eight operated rigs running throughout the quarter. Seven wells were
All production in the Southern Region has been fully restored. spud and six wells were completed.However, following Hurricane Ike, production was curtailed for a number of days across the region due to damages sustained by third-
rdparty infrastructure. The cumulative 3 Qtr volume impact in the region was approximately 0.3 MMBOE. At the end of the quarter, the Bear Grass field reached a gross
production record of 45 MMcf/d. The team also successfully tested the first pilot well on 20-acre spacing in Bear Grass, with encouraging results that may lead to a 20-acre-spacing development
The Carthage asset team continued to execute a successful program, program. The Bossier asset team ran three rigs throughout the completing 22 operated wells. quarter, with seven wells spud and four wells completed.
Chalk
Bossier
Carthage
!
!
!
*Data may not add to totals due to rounding.
NYSE:APC www.anadarko.com 8
Southern
Marcellus ShaleGas Fairway
Current Drilling
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION
Haley / Delaware Basin Marcellus
Maverick Basin
Haynesville
! !
!
!
The Anadarko/Chesapeake partnership had eight rigs running in Anadarko's leasehold expanded to approximately 644,000 gross rdthe Delaware Basin during the 3 Qtr, with seven wells spud and six acres after successful participation in the Pennsylvania State Forest
rdwells completed. lease sale. Our first horizontal well spud during 3 Qtr and brings the total number of wells spud this year to four. Testing of two
thvertical wells will continue in the 4 Qtr, and we expect to complete another vertical well and our first horizontal well by year end.
Anadarko has completed a number of wells with very encouraging results in its U.S. onshore exploration program, including the Maverick Basin, Haynesville and Marcellus Shale plays.
rdTwo horizontal wells were drilled during the 3 Qtr for a total of four horizontal wells drilled during 2008 (two Eagleford and two Pearsall tests). Testing continues in the Eagleford where fracture
rdstimulations and completions commenced late in the 3 Qtr. The
thPearsall horizontals will be stimulated and tested during the 4 Qtr.
Anadarko has more than 80,000 net acres in the prospective fairway of the Haynesville Shale, the majority held by production underneath our producing fields in the Carthage area in Texas and Elm Grove in Louisiana. The first Anadarko-operated Haynesville
rdwell was spud, drilled and cored late in the 3 Qtr with completion
thoccurring early in the 4 Qtr. Three to four exploratory tests in the Haynesville, including one horizontal well, are planned by year end.
– EXPLORATION –
NYSE:APC www.anadarko.com 9
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION
Gulf of Mexico
T E X A S L O U I S I A N ANew Orleans
IndependenceHub
Marco Polo
Baldpate/Conger
Nansen
APC acreage
APC facilities
Gunnison
Boomvang
Power Play
Red Hawk
Constitution
– PRODUCING PROPERTIES –
Once again, Anadarko's operated facilities in the deepwater Gulf of Mexico proved their robust design and construction by weathering several named storms with only minor superficial damage. The weather did have a significant effect on Gulf of Mexico production,
rdwith a cumulative 3 Qtr volumes impact of almost 4.5 MMBOE net to Anadarko. However, within a relatively short time frame, repairs were made. All of Anadarko's operated facilities are operational with approximately 73% of normal Gulf production back on line. The remainder is curtailed due to damage to third-party platforms and other third-party infrastructure further downstream. As a result of these lingering repairs, an additional three to five million barrels of production will likely be deferred and has been factored into the
thupdated 4 Qtr volume guidance.
MMcf/d MBbls/dMMcf/d MBbls/d
2Q083Q08
Net Volumes
TOTAL 448 51 301 68
NYSE:APC www.anadarko.com 10
Gulf of Mexico
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION
Jubilee
Vortex
Mondo NW Atlas NW
Atlas
Cheyenne
SpidermanSan Jacinto
Q
Merganser
Jubilee
Vortex
Mondo NW Atlas NW
Atlas
Cheyenne
SpidermanSan Jacinto
Q
Merganser
IndependenceHub
– PRODUCING PROPERTIES (CONT.) –
Independence Hub Power Play
Marco Polo
Boomvang
! The Independence Hub platform was shut in for approximately 10 Garden Banks 258/302 (APC 45% WI)days in late July/early August for a check up on the third-party export
ndpipeline. Upon completion, the facility quickly ramped up to full rates Prior to Hurricane Ike, Power Play was brought on line during the 2 rdand is currently producing approximately 900 MMcf/d gross. Qtr and maintained its initial rate of 9,000 BOE/d gross in the 3 Qtr.
Due to damages sustained at the Hess-operated Baldpate platform, volumes were subsequently shut-in during the month of October. However, recent repairs to the platform have brought back production at full rate.
Green Canyon 608 (APC 100% WI)
Anadarko is currently reinjecting approximately 10 MMcf/d of natural gas into the Marco Polo reservoirs and producing at restricted rates from the Marco Polo and K2 fields as downstream third-party infrastructure damage prevented Anadarko from bringing production back on line at full rate. Anadarko anticipates that downstream repairs will be complete and full production will be back on line at year end.
East Breaks 643/642/688 (APC 30% WI)East Breaks 598 (APC 100% WI)East Breaks599 (APC 33% WI)
The facility experienced no significant hurricane-related damage and is currently producing at pre-storm rates.
!
!
!
NYSE:APC www.anadarko.com 11
Gulf of Mexico
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION
– PRODUCING PROPERTIES (CONT.) –
Nansen
Red Hawk
Gunnison
Constitution
Conger
East Breaks 558/602/646/689/690 (APC 50% WI)
Anadarko continued its platform rig program at Nansen, with The Conger subsea wells were not damaged by the storms. However, successful completion of the A-4 well. The well was brought on line at damage to the third-party host platform resulted in a complete shut in 20 MMcf/d gross and the platform rig was demobilized from the of all incoming production. Anadarko anticipates that repairs will be facility prior to hurricane season. completed and the Conger wells will be back on line in 1st Qtr 2009.
East Breaks 646 #8 and 646 #7ST wells (Shackleton and DP-1) remain on schedule for a mid-year 2009 startup, with installation
stactivities scheduled to commence in the 1 Qtr 2009. Garden Banks 877 (APC 50% WI)
Plans to initiate drilling operations on a third well, GB 877 #3, in the st
1 Qtr of 2009 remain on track. The prospect targets new fault blocks, Garden Banks 667/668/669 (APC 50% WI) with proven field pay in addition to several new horizons. If
successful, the well would be immediately completed and brought on Anadarko is currently producing oil at approximately 3,000 Bbls/d line in the second half of 2009.gross, and re-injecting natural gas into the reservoir. Repairs to downstream facilities are expected to be complete in November, when the platform should resume pre-storm production rates.
Green Canyon 680 (APC 100% WI)
While the Constitutional spar is operational, downstream third-party Garden Banks 215 (APC 25% WI) infrastructure damage prevented Anadarko from bringing
production back on line. Anadarko anticipates that third-party Completion operations on the GB 215 #8 ST1 well were completed downstream repairs will be complete and production will be back on and the well was brought on line. Initial production quickly ramped line, prior to year end.up to a rate of approximately 40 MMcf/d and 8,000 BBls/d gross.
! !
!
!
!
!
!
NYSE:APC www.anadarko.com 12
Gulf of Mexico
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION
– MAJOR DEVELOPMENT PIPELINE –
Caesar / Tonga K2 Complex
Mission Deep
Blind Faith
Green Canyon 683/726/727/770 (APC 33.75%) Green Canyon 561/562/605/606/518/563/607 (APC 42% WI)
The partnership drilled a confirmation well of the West Tonga Sidetracking operations continued on the GC 562 #4 ST2, with the discovery. The GC 770 #1 ST 1, located approximately 3,000 feet from well being drilled through the M-20 Sand. Core and fluid samples the GC 726 #1 BP 3 discovery well, encountered high-quality subsalt were obtained from the M14 sand and Anadarko is preparing to core Miocene sands with more than 700 feet of net pay in dipping the M20 sand to confirm recent evidence of additional aquifer support formations. The discovery is part of a large continuous reservoir in both sands, which may result in an improved primary recovery included in a 20,880-acre unit formed for development with the factor. Work continues to determine the optimum development plan Caesar discovery, located three miles further to the north. for the field.Development activities are on track for startup in the first half of 2011.
Development activities at the Caesar/Tonga complex progressed in the rd
3 Qtr. Procurement activities on long-lead items, front-end Green Canyon 956 (APC 50% WI)engineering and design (FEED) studies continued. Preliminary
rdtesting on the high-pressure riser that will enable development of the During the 3 Qtr, Anadarko initiated sidetrack appraisal operations field as a subsea tieback to the Anadarko Constitution spar is expected at its Mission Deep discovery. Anadarko is currently evaluating its to be complete by year end. In addition, the unitization agreement, options with respect to this field.previously approved by partners, was approved by the MMS.
Mississippi Canyon 695/696 (APC 25% WI) – Chevron operated
Blind Faith commissioning continues, with first production expected by year end.
!
!
!
!
!
NYSE:APC www.anadarko.com 13
Gulf of Mexico
Second Quarter 2008 ANADARKO PETROLEUM CORPORATION
T E X A S L O U I S I A N ANew Orleans
Tonga
Sturgis North
Blind Faith
APC acreage
Exploratory Drilling
Major Developments
Caesar
Shenandoah
Vito
Heidelberg
K2 Complex
Mission Deep
– EXPLORATION –
!
!
!
!
The Shenandoah prospect (Walker Ridge 8) was spud in early June. The well has a Lower Tertiary (Wilcox) objective and is projected to reach total depth of 31,000 feet (30,500 feet total vertical depth) in the
th4 Qtr. Anadarko is operator and holds a 30% working interest. Partners include Conoco-Phillips (40% WI), Cobalt (20% WI) and Marathon (10% WI).
The Sturgis North prospect (Atwater Valley 138) was spud in early February and was plugged and abandoned at the end of the quarter.
The Heidelberg exploration well (Green Canyon 859) is scheduled to thspud in the 4 Qtr. The well is a Miocene target that is on trend with
the Tonga West discovery and has a projected total depth of 28,500 feet in 5,025-foot water depth. Anadarko holds a 44.25% working interest and is the operator. Partners include Mariner (12.5% WI), ENI (12.5% WI), Exxon (9.375% WI), Cobalt (9.375% WI), Statoil-Hydro (12% WI).
The Vito exploration well (Mississippi Canyon 984) is scheduled to th
spud in the 4 Qtr. The well is a middle Miocene test and has a projected total depth of 29,500 feet in 4,000 feet of water. Anadarko is operator with 20% working interest, along with Statoil-Hydro (25% WI) and Shell (55% WI). Shell will operate after the exploration well has been drilled.
NYSE:APC www.anadarko.com 14
International / Frontier
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION
3Q08
$ MM
Capital*
MBbls/dMBbls/d
2Q083Q08
Net Volumes*
Alaska
Algeria
China
Other
TOTAL
18
64
14
1
97
21
56
17
0
94
– DEVELOPMENT –
Alaska China
Algeria Brazil
! !
!
!
! !
!
!
rdGross oil production for the Colville River Unit averaged 99,000 Bbl/d During the 3 Qtr, oil production averaged 46,000 Bbl/d gross from rdduring the 3 Qtr, reflecting the planned annual facility maintenance Bohai Bay.
shutdown executed in August.Development drilling continued, with two wells drilled in the CFD
Development drilling at the Qannik Satellite continued as four new 11-1 field and four wells drilled in the CFD 12-1S field during the wells were drilled and completed during the quarter. quarter.
rdDuring the 3 Qtr, oil production from the Hassi Berkine South and Sale of the Peregrino project is progressing toward transaction close, the Ourhoud Central Processing Facilities was 448,000 Bbl/d gross. which should be around year-end 2008.
The BKNE-B field came on production two months ahead of forecast and is currently producing at 4,000 Bbl/d. Additional drilling in the
thfield is scheduled for 4 Qtr 2008 and into 2009.
Anadarko and its partners broke ground and began site preparation for the El Merk project.
10
19
13
67
109
*Data may not add to totals due to rounding.
NYSE:APC www.anadarko.com 15
International / Frontier
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION
– EXPLORATION –
Brazil China
! !
!
rdAnadarko announced a significant pre-salt discovery at the Wahoo During the 3 Qtr, Anadarko completed acquisition of 1,550 prospect on block BM-C-30 offshore Brazil in the Campos Basin at the kilometers (~960 miles) of 2D seismic. Preparations continue for a
rd thend of the 3 Qtr. Since that time, the well reached total depth of planned 4,000-meter (~13,000-foot) exploratory well during late 4 stapproximately 20,000 feet, encountered an additional oil Qtr 2008 or early 1 Qtr 2009.
accumulation in a deeper zone and confirmed the quality of the previously announced reservoir. Extensive logging, fluid and pressure sampling has now confirmed more than 200 feet of net pay consisting of high-quality, high-gravity crude oil in the upper zone with additional hydrocarbon-bearing sands encountered in a deeper zone. Anadarko believes the reservoir properties are similar to the giant Jubarte field, which is estimated to hold more than a billion barrels of recoverable oil. Anadarko and its partners are currently running casing to total depth to prepare for drillstem tests in 2009 to further evaluate the multiple hydrocarbon-bearing zones, as well as further exploration and appraisal drilling on the block in 2009.
Having control of the Transocean Deepwater Millennium drillship enables Anadarko to execute upon its pre-salt program, which includes appraisal drilling around the Wahoo well, re-entering the Serpa prospect in the Espírito Santo Basin and drilling at least five additional deepwater pre-salt tests in the Espírito Santo and Campos basins.
NYSE:APC www.anadarko.com 16
International / Frontier
Third Quarter 2008 ANADARKO PETROLEUM CORPORATION
Cretaceous Trend2 BBOE Discovered
Under-Explored
Tertiary Trend103 BBOE Discovered
Cretaceous Trend8 BBOE Discovered
2008 Drilling
APC Discovery
APC Acreage
2009 Drilling
– EXPLORATION (CONT.) –
Ghana West Africa
! !
!
!
Plans to sanction the Jubilee Field, with estimated recoverable Anadarko was awarded a 100% working interest in Block 10, a 3,465-resources of between 500 million and 1.8 billion BOE, remain on square-kilometer (~1,340-square-mile) tract offshore Liberia. This track. A suitable FPSO has been selected and a Letter of Intent has block is located in the Liberian basin and is on trend with the been signed on the vessel. Project awards on several long-lead items emerging Upper Cretaceous fan play.
rdwere executed in the 3 Qtr.
Anadarko signed a contract to acquire 3D seismic on Liberia blocks The deepwater drilling rig Blackford Dolphin arrived during the 15, 16 and 17 as part of the exploration program. The current plan is to second week of October, and the Erik Raude rig is expected to arrive acquire 4,700 square kilometers (~1,800 square miles) of data over the before the end of 2008. These two rigs will continue the exploration, deepwater portion of the blocks to evaluate for potential Cretaceous appraisal and development well drilling program in the Deepwater fan prospect development in this emerging basin. Seismic acquisition
thTano Lisence and West Cape Three Points blocks. In addition, the is planned to start in the 4 Qtr. Anadarko operates the blocks with a partners have contracted for two additional rigs, the Aban Abraham 65% working interest.and Atwood Hunter, which will arrive in early 2009 and will be focused on exploratory and appraisal work.