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HOUSTON--(BUSINESS WIRE)--March 12, 2007--Anadarko Petroleum
Corporation (NYSE:APC) today announced it has agreed to sell a portion
of its interest in the K2 Unit in the Gulf of Mexico to two
undisclosed parties for $1.2 billion. The sale is effective Jan. 1,
Year to date, gross daily production averaged 37,100 barrels of
oil equivalent per day from six wells within the K2 Unit, in which
Anadarko currently has a 65 percent working interest and is operator.
The sale represents a 23.2 percent working interest. Following the
transaction, Anadarko will remain the K2 Unit operator with a 41.8
percent working interest.
"This partial sale affirms our view of the value of this field and
its contribution to our equity story, as well as keeping us ahead of
schedule on debt reduction efforts," Anadarko Chief Financial Officer
Al Walker said.
"This transaction allows us to both diversify our risk profile and
retain a meaningful working interest as the operator in the unit,"
Anadarko Chairman, President and Chief Executive Officer Jim Hackett
said. "We believe there is outstanding upside potential in this unit
and are working with our partners to finalize plans to enhance the
recovery of oil from this large reservoir."
"We believe getting our debt reduced quickly and maintaining a
solid investment grade credit rating are integral to the successful
execution of our business model," Hackett said. "We continue to be
very pleased with the pace of, and values realized in, our divestiture
The transaction is expected to close in the second quarter of
2007, subject to applicable pre-emption rights of co-owners in the
subject leases and other closing conditions agreed to by the parties.
Scotia Waterous marketed the assets, while UBS and Credit Suisse
served as Anadarko's financial advisors.
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 2006, the
company had 3.0 billion barrels-equivalent of proved reserves, making
it one of the world's largest independent exploration and production
companies. In August 2006, Anadarko acquired Kerr-McGee Corporation
and Western Gas Resources, Inc. in separate transactions.
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 to differ
materially from the projections, anticipated results or other
expectations expressed in this news release. Anadarko cannot guarantee
that it will successfully integrate the recently acquired businesses
or complete its pending or proposed asset sales. See "Risk Factors" in
the company's 2005 Annual Report on Form 10-K and other public
filings, press releases and discussions with company management.
Anadarko undertakes no obligation to publicly update or revise any
CONTACT: Anadarko Petroleum Corporation, Houston
Susan Richardson, 832-636-1537
John Christiansen, 832-636-8736
John Colglazier, 832-636-2306
SOURCE: Anadarko Petroleum Corporation