Anadarko Petroleum Corporation (APC) said it has discovered light boil at the Akasa-1 exploration well on the West Cape Three Points Block offshore Ghana. Drilled to total depths of 12,850 feet (3,920 meters) in water depths of 3,800 feet (1,160 meters), the well encountered 108 net feet (33 meters) of high-quality oil pay from four main Turonian-aged sand packages, similar to those found in the Jubilee and Mahogany East areas.
The Akasa-1 discovery builds upon the partnership's successful West Cape Three Points program, enhancing the resource potential of this prolific area. Anadarko owns a 30.875% working interest in the West Cape Three Points Block.
Co-owners in the block include Kosmos Energy (30.875% working interest and operator), Tullow Oil plc (26.396% working interest), Sabre Oil & Gas Holdings Ltd (1.854% working interest) and the Ghana National Petroleum Corporation (10% carried interest).
The partnership plans to preserve the Akasa-1 discovery well for future use and plans further development in the area with appraisal activity at both Akasa and Teak. After successful appraisal, Anadarko expects the Akasa discovery along with previous discoveries at Teak to support further development on the block.
In addition to the Akasa, Anadarko also announced successful well results at the Tweneboa-4 well in the deepwater Tano Block. The well encountered sustained flow rates of nearly 3,500 barrels of condensate per day (BCPD) and 30 million cubic feet of natural gas per day (MMcf/d).
A previous test at the Tweneboa-2 well achieved flow rates of 6,500 barrels of oil per day (BOPD) and 4.8 MMcf/d. Altogether, data from these tests are being used to optimize development plans for the Tweneboa/Enyenra complex.
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% carried interest).
Anadarko's other deepwater programs include the Montserrado prospect, located southeast of Mercury-1 discovery well offshore Sierra Leone. Montserrado is the first deepwater well in Liberian waters, spud in late July. The company also has long-lead items in place, and commitments for two rig slots in Cote d'Ivoire, where Anadarko plans to begin drilling late this year or in early 2012 at the Kosrou-1X and Paon-1 exploration wells.
In the Gulf of Mexico, Anadarko has received drilling permits for the Heidelberg appraisal well, the Cheyenne East exploration well near the company's Independence Hub facility, and a development well in the Nansen field. Drilling activity at these locations is expected to begin later this year.
Based in The Woodlands, Texas, Anadarko Petroleum is primarily engaged in the exploration, development, production, gathering, processing and marketing of natural gas, crude oil, condensate and NGLs. The company primarily competes with ConocoPhillips (COP) and Exxon Mobil Corp. (XOM).
Anadarko currently has a Zacks #3 Rank (short term Hold rating). We maintain our long term ‘Neutral’ recommendation on the stock.
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