ANCHORAGE, Alaska, May 5 /PRNewswire/ -- Anadarko Petroleum Corporation
(NYSE:APC) reported that it participated in apparent high bids on 99 blocks
in the National Petroleum Reserve-Alaska (NPR-A) area offered at the federal
lease sale held in Anchorage, Alaska, on Wednesday, May 5, 1999. Anadarko bid
with ARCO Alaska, Inc. on 92 of the 99 apparent high bids. Anadarko bid alone
on the remaining seven apparent high bids. Overall, Anadarko bid on a total
of 125 blocks in the sale. Anadarko said its net exposure on the 99 high bids
totaled approximately $16.5 million. The high bids are subject to approval by
the Bureau of Land Management.
Together, the 99 blocks comprise a total of 628,405 gross acres. The
NPR-A area is located on Alaska's North Slope.
Anadarko and its partnership with ARCO Alaska were the top bidders at the
lease sale, exposing a combined total of $86.6 million at the lease sale. The
Anadarko/ARCO Alaska partnership had the single top bid in the sale on Tract
51 at $3.655 million.
``Our participation in the NPR-A lease sale reflects Anadarko's strong
commitment to Alaska, which is one of our core areas,'' said John N. Seitz,
President and Chief Operating Officer. ``Since the early 1990s, we have
aggressively expanded our oil and gas interests in Alaska. We consider Alaska
to be among the most attractive areas in the world to add significant
reserves. We are very excited to add these blocks in the NPR-A to our growing
portfolio in Alaska.
``I also want to add that we are pleased the Department of the Interior
decided to hold this lease sale. On behalf of Anadarko, I want to express our
appreciation to Governor Knowles, his staff and the legislature for their hard
work and efforts in making this important lease sale happen,'' Seitz said.
Of the 99 successful bids, Anadarko has a 22% working interest in 92 of
the blocks. ARCO Alaska holds the remaining 78% interest in these 92 blocks.
Anadarko holds a 100% working interest in the remaining seven successful
bids and will operate these blocks.
The NPR-A blocks are adjacent to the Colville River Unit where Anadarko
and ARCO Alaska are developing the Alpine oil field. The size of the NPR-A
blocks range from 5,760 acres (a quarter township) to 11,520 acres (a half
Prior to the NPR-A lease sale, Anadarko had interests in more than
676,000 gross acres in state, federal and fee lands in Alaska. In addition,
Anadarko has exploration access to another 2.2 million acres owned by the
Arctic Slope Regional Corporation in the Foothills on the North Slope. (See
below for additional details.)
On the North Slope, Anadarko has a 22% working interest in the Alpine oil
field, which is scheduled to begin production in mid-2000. ARCO Alaska serves
as operator of Alpine and holds the remaining 78% working interest. Anadarko
and ARCO Alaska also jointly hold six offshore lease blocks in the Beaufort
Sea west of the Alpine field.
In August 1998, Anadarko entered into an agreement with the Arctic Slope
Regional Corporation (ASRC) that gives Anadarko exclusive access to more lands
for exploration than any other oil company operating in the state. The
agreement, which covers the Foothills region in the northern portion of the
state, provides Anadarko with exploration rights to 2.2 million gross acres
that ASRC currently owns and future rights to an additional 240,000 acres upon
ASRC's selection and receipt of title.
Anadarko also has other interests in the North Slope and the Cook Inlet
This press 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 assurances, however, can be given that its goals
will be achieved. See Additional Factors Affecting Business in the
Management's Discussion and Analysis (MD&A) included in the Company's 1998
Annual Report on Form 10-K.