Anadarko Petroleum Corp. has discovered natural gas at its Jubilee prospect in the eastern Gulf of Mexico. The Atwater Valley 349 No. 1 discovery well is the first well drilled in Anadarko's eastern Gulf of Mexico exploration program.
The discovery well was spudded in February in 8,800 ft of water, 200 mi southeast of New Orleans. It encountered 83 ft of net pay and Transocean's Deepwater Millennium drilled to 18,310 ft. Estimated field size is 40-50 MMboe. Anadarko holds a 100% interest in the Jubilee discovery and adjacent blocks.
"This discovery is encouraging for three reasons," said Robert J. Allison, Jr., Anadarko chairman, president and CEO. "First, we validated our geologic model and seismic imaging technology by finding productive sands exactly as predicted. Second, this provides a good start to our eastern Gulf of Mexico exploration program, which targets estimated unrisked potential of about 2 billion BOE. And third, the pay zone found at Jubilee is one of the primary prospective intervals in our nearby Hawkeye prospect and all other prospects on our eastern Gulf blocks."
The company believes Jubilee could be commercially produced when hub facilities are established in the area.
Toward that goal, Anadarko will begin drilling its high-potential Hawkeye prospect at Lloyd Ridge block 360 in 9,100 ft of water. Anadarko holds a 100% working interest in Hawkeye.
The company has committed to a third drilling slot on the Deepwater Millennium drillship for possible delineation or to drill another deepwater prospect in the area. Within the overall eastern Gulf, Anadarko has a 100% interest in 38 blocks, with 17 identified prospects.
"We've assembled a strong acreage position in the Gulf, we've completed extensive technical analysis, and we're excited to put our drilling program into action," Allison said.
In 2003, Anadarko plans to drill 40 wells in the Gulf, 10 of which are exploration wells. The company holds 374 leases in the Gulf with 165 in deepwater. It also holds options to earn working interests in an additional 122 blocks.
04/07/03