Lucius sidetrack confirms discovery

A sidetrack appraisal well on the Lucius discovery in the Gulf of Mexico Keathley Canyon block 875, encountered about 600 net ft (183 m) of oil and gas pay in subsalt Pliocene and Miocene sands, operator Anadarko reports.

Offshore staff

HOUSTON -- A sidetrack appraisal well on the Lucius discovery in the Gulf of Mexico Keathley Canyon block 875, encountered about 600 net ft (183 m) of oil and gas pay in subsalt Pliocene and Miocene sands, operator Anadarko reports.

"The successful Lucius appraisal well confirms this is a major discovery with substantial resource potential," says Bob Daniels, Anadarko Sr. VP, Worldwide Exploration. “The reservoirs are characterized by excellent porosity and permeability and contain high-quality oil.”

The Lucius appraisal well was drilled as an up-dip sidetrack, approximately 3,200 ft (975 m) due south of the discovery well. Semisub Ensco 8500 drilled it to 20,600 ft (6,279 m) TD in 7,100 ft (2,164 m) of water. The Lucius discovery well, announced last December, was drilled to 20,000 ft (6,096 m) TD and encountered more than 200 net ft (61 m) of pay. Anadarko says it will continue appraisal activity in the area this year as it evaluates development options. The company previously mentioned that it was considering a tieback to theRed Hawk cell spar as one development scenario.

Anadarko operates the Lucius well with a 50% working interest. Partners are Plains E&P Co. (33.33%) and Mariner Energy Inc. (16.67%).

Following work on Lucius, Anadarko will use Ensco 8500 to appraise the Heidelberg discovery, which was announced in early 2009. Anadarko operates Heidelberg with a 44.25% working interest.

1/27/2010

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