Independent oil and gas producer
Anadarko Petroleum Corporation
) has made another major natural gas discovery in Offshore Area 1
of Mozambique's Rovuma Basin. The Atum discovery well encountered
more than 300 net feet (92 net meters) of natural gas play in two
high-quality Oligocene fan systems.
The new discovery is located 10 miles (16.5 kilometers)
northwest of Offshore Area 1. This well was drilled to a depth of
12,665 feet (3,860 meters) in 3,285 feet (1,000 meters) of water.
This discovery is expected to add 10 to 30 trillion cubic feet
("Tcf") of recoverable resources over a period of time.
Anadarko operates Offshore Area 1 of Mozambique jointly with
five other companies and has a working interest of 36.5%. The
working interests of the other co-owners are as follows: Mitsui
E&P Mozambique Area 1, Limited (20%), Empresa Nacional de
Hidrocarbonetos, ep (15%), BPRL Ventures Mozambique B.V. (10%),
Videocon Mozambique Rovuma 1 Limited (10%), and Cove Energy
Mozambique Rovuma Offshore, Ltd. (8.5%). Now, the consortium is
planning to start a four-well appraisal program at this
Anadarko has been actively carrying out exploration activities
in this region, particularly in Mozambique. In May 2011, Anadarko's
Golfinho discovery well encountered more than 193 net feet (59 net
meters) of natural gas play in two high-quality Oligocene fan
systems. This discovery was located 20 miles (32 kilometers) to the
northwest of the Prosperidade complex, with a potential to
contribute 7 to 20 Tcf of recoverable resources over a period of
Now the company expects Offshore Area 1 of Mozambique to
contribute total estimated recoverable natural gas resource of
30-60 Tcf. At the same time, the current total gas upside of the
discovered reservoirs on the block will be 100 Tcf.
Anadarko has been operating in Mozambique for quite some time
and achieved drilling success in Lagosta and Camarao. It is
continuously improving its overall portfolio on the back of its
drilling successes in Mozambique, Ivory Coast, Ghana and the Gulf
At present, global oil and gas companies are teaming up with
local players to discover unexplored reserves in Asia and Africa.
Anadarko has also joined this international bandwagon. In Africa,
besides Mozambique, the company is expanding its operations at
CI-103 Block in Cote d'Ivoire ("Ivory Coast"), Deepwater Tano and
West Cape Three Points in Ghana, and Block SL-07B-11 in Sierra
In the first quarter of 2012, Anadarko spent $385 million to
continue with its aggressive exploration activities and invested a
substantial amount to revamp its African operations. A few days
ago, Anadarko's Paon-1X exploration well encountered more than 100
net feet (31 meters) of oil play in a Turonian-aged reservoir
offshore Ivory Coast.
Over the years, there has been a surge in natural gas demand
given its clean burning nature. We expect that power generation
companies will use natural gas as fuel in place of coal. Also,
newly-installed units are more likely to use natural gas as fuel,
thus increasing its consumption.
Anadarko Petroleum Corporation currently retains a Zacks #3
Rank, which translates into a short-term Hold rating.
The Woodlands, Texas-based Anadarko Petroleum Corporation is
primarily engaged in the exploration, development, production,
gathering, processing and marketing of natural gas, crude oil,
condensate and natural gas liquids. The company competes with
Atlas Resource Partners, L.P.
ANADARKO PETROL (APC): Free Stock Analysis
(ARP): ETF Research Reports
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