Independent oil and gas producer
Anadarko Petroleum Corporation
) made another light oil discovery in offshore Ghana. The Ntomme-2A
appraisal well successfully drilled oil in the Deepwater Tano Block
and encountered 128 net feet (39 meters) of light oil in standstone
Earlier, in August 2011, Anadarko discovered light oil at the
Akasa-1 exploration well on the West Cape Three Points Block
offshore Ghana. The offshore well encountered 108 net feet (33
meters) of high-quality oil pay from four main Turonian-aged sand
The Ntomme-2A appraisal well, drilled at a total depth of
approximately 12,810 feet (3,905 meters), encountered about 5,675
feet (1,730 meters) of water.
Anadarko holds an 18% working interest in the Deepwater Tano
Block. Tullow Oil plc is the operator with a 49.95% working
interest, and the other partners in the block are Kosmos Energy
(18% working interest), Sabre Oil & Gas Holdings Ltd (4.05%
working interest) and the Ghana National Petroleum Corporation (10%
Anadarko's African exploration continues to pay rich dividends
to the company. At the beginning of the week the company made
a successful natural gas discovery in offshore Mozambique.
The drilling well has encountered 777 total net feet (237 meters)
of natural gas pay in multiple zones.
Ghana has recently gained importance in the international oil
and gas production markets. Its proved reserves were much lower
than neighboring Nigeria. However, international operators are
exploring offshore Ghana in search of oil and gas.
On June 8, 2011,
) announced the discovery of oil at the Paradise-1 deepwater
exploration well offshore Ghana. Hess will be operating the well
with a 90% working interest, while Ghana National Petroleum Corp.
("GNPC") will control the remaining 10%.
International oil and gas operators are investing big money in
Africa with a business expansion motive as they believe that both
onshore and offshore fields have an abundance of oil and natural
gas. If we look at the bigger picture, the petro-dollars, which are
coming in these economically weak countries, can be utilized for
overall development. In reality, drilling investments in Africa
have actually widened the divide between the haves and the
have-nots, with the benefits derived from a national treasure
reaped by only a handful.
Ghana has only lately joined the bandwagon of development. We
eagerly wait to see whether the country can bring about economic
growth riding on its liquid gold assets.
We have a long-term Neutral recommendation on Anadarko, which
coincides with the Zacks # 3 Rank, translating into a short-term
Hold rating retained by the stock.
Based in Texas, Anadarko Petroleum is an independent oil and gas
company engaged in the acquisition, exploration, and production of
oil and gas primarily in the deepwater Gulf of Mexico in the US and
ANADARKO PETROL (
): Free Stock Analysis Report
HESS CORP (
): Free Stock Analysis Report
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