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HOUSTON, TX, Dec 15, 2011 (MARKETWIRE via COMTEX) --Anadarko Petroleum Corporation (NYSE: APC) announced that it, along with its co-venturers, have sanctioned the development of the Lucius project, located in the Keathley Canyon area of the deepwater Gulf of Mexico.
"We are very pleased to achieve this important milestone in the development of the deepwater Lucius project," said Anadarko President and Chief Operating Officer Al Walker. "We expect Lucius to be among the most economic projects in our portfolio, as we plan to utilize 'off-the-shelf' technology and leverage our proven project-management skills in an area where we have extensive expertise. We estimate the Lucius unit holds more than 300 million BOE (barrels of oil equivalent) with relatively shallow and highly productive reservoirs that can be developed in a capital-efficient manner. Once completed, Lucius will establish important infrastructure in an emerging area of the Gulf of Mexico where we have identified additional prospects and opportunities. We expect to have an active drilling program in the unit beginning in 2012, and we look forward to working with our partners to achieve first production in 2014."
Lucius will be developed with a truss spar floating production facility with the capacity to produce in excess of 80,000 barrels of oil per day and 450 million cubic feet of natural gas per day. The spar is currently under construction at Technip's facility in Pori, Finland and will be the largest of Anadarko's operated spars -- a deepwater production solution pioneered by the company in 1997.
The Lucius unit includes portions of Keathley Canyon blocks 874, 875, 918 and 919. Anadarko operates the unit with a 35-percent working interest. Following the previously announced unitization agreement, Lucius interest owners entered into an agreement with the Hadrian South co-venturers, whereby natural gas produced from the Hadrian South field will be processed through the Lucius facility in return for a production-handling fee and reimbursement for any required facility upgrades.
Co-venturers in the Lucius unit include Plains Exploration & Production Company (NYSE: PXP) with a 23.3-percent working interest; Exxon Mobil Corporation (NYSE: XOM) with a 15-percent working interest; Apache Deepwater LLC, a subsidiary of Apache Corporation (NYSE: APA) (NASDAQ: APA) with an 11.7-percent working interest; Petrobras with a 9.6-percent working interest; and Eni with a 5.4-percent working interest.
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2010, the company had approximately 2.42 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko, please visit www.anadarko.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results (including the ultimate economics of the project) to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko's ability to successfully drill, develop and operate the drilling prospects identified in this news release or achieve first production in 2014. See "Risk Factors" in the company's 2010 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.
Cautionary Note to U.S. Investors: Effective Jan. 1, 2010, the United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms. Anadarko references in this release the estimated ultimate recovery of the Lucius project, and the SEC's guidelines strictly prohibit Anadarko from including such term in filings with the SEC. U.S. investors are urged to consider closely the disclosure in Anadarko's Form 10-K for the year ended Dec. 31, 2010, File No. 001-08968, available from Anadarko at www.anadarko.com or by writing Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380, Attn: Investor Relations. This form may also be obtained by contacting the SEC at 1-800-SEC-0330.
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SOURCE: Anadarko Petroleum Corporation