Anadarko Petroleum Corp. and its partners have another successful deepwater subsalt appraisal well on their K2 discovery, in the Gulf of Mexico on Green Canyon block 562, 180 mi south of New Orleans.
"We're pleased to discover the potential field size of K2 could be larger than Anadarko's previous estimates," said Robert J. Allison Jr., Anadarko chairman, president and CEO. "The K2 No. 3 appraisal well was intended to confirm the northwestern edge of the field, but the field extends even deeper and farther beyond what we had predicted. In fact, the outermost limits of K2 are still unknown."
Later this summer, Anadarko plans to drill an exploration well on the northern adjacent block, Green Canyon block 518, in which the company holds a 100% working interest.
Agip Petroleum Co. Inc. spudded the K2 No. 3 well in February 2003 in 3,900 ft of water. The well reached a total depth of more than 27,000 ft and encountered a total of 208 ft of oil pay in two sands with no oil-water contact. The findings confirm the prior estimated gross reserves of about 100 MMboe, and the lack of an oil-water contact suggests additional reserve potential.
The well extended the limit of the proven oil column down dip an additional 800 ft on the K2 structure.
Anadarko holds a 52.5% working interest in the project; other partners include operator Agip 18.2%, ConocoPhillips Co. 16.8%, and Unocal 12.5%.
The K2 partner companies expect to make a decision on development plans as early as this summer. They are considering options including a separate structure or a tie-back to the nearby Marco Polo facility, which will be installed late this year and operated by Anadarko. First production from K2 could be late 2004 or early 2005.
In 1999, the No. 1 well and sidetrack were drilled on the same block, about 4,000 ft away. The wells encountered only one zone with average net pay of 60 ft. In September 2002, the No. 2 well found a total of 339 ft of pay. The No. 2 was also sidetracked up dip to evaluate the extent of the discovery and encountered 84 ft of net pay from three intervals.
Anadarko owns an interest in 378 blocks in the Gulf of Mexico, of which 167 are in deepwater.
05/27/03