Avante acquires Anadarko's Brazil assets

Offshore staff

(Brazil)- Avante Petroleum, the oil and gas E&P operator with interests across Latin America, has signed definitive agreements to acquire Anadarko Petroleum's wholly-owned subsidiary containing its operations in Brazil. The primary asset is the Tartaruga offshore oil field in the Sergipe-Alagoas basin.

The deal gives Avante a 67.5% working interest and future operatorship over a block covering 53 sq km located in shallow water known as block 1-SES-107D. The block currently produces oil from a single well situated on the Tartaruga oil field. Since its discovery in 1994, the field has produced over 700,000 bbl of light sweet crude with gravity 41º API.

In December 2005 a delineation well was spud on the field to gain further information on the production potential. This well will also test a deeper exploration objective known to be productive in other parts of the basin. The well is expected to reach the deeper objective later this month.

Avante has signed a definitive stock purchase agreement leading to the acquisition of 100% of the shares of Anadarko Brazil Company. The other partners in the license are Petrobras with 25.0% and TDC Engineering with 7.5%. Avante will be the future operator of the license pending government approvals and the formal closing of the transaction. The closing of the transaction is expected to take place during the first half of 2006, once the current drilling operations are completed.

Mark Rollins, CEO of Avante, said of the deal:

"We are delighted to have secured this proven asset which we believe to be highly prospective. The acquisition is in line with our strategy of delivering returns from mature or underdeveloped Latin American fields with proven reserves. We will use the latest technologies and operating techniques to maximize the potential of the block."

04/06/2006