Anadarko to Raise 2012 Capex (USA)

Anadarko Petroleum Corporation announced its 2012 capital program and guidance, and the highlights of its Investor Conference to be held today.

Anadarko Investor Conference Highlights

--  Resolved Algeria exceptional profits tax (TPE) dispute with Sonatrach
--  Achieved first oil at the deepwater Gulf of Mexico Caesar/Tonga
    development
--  Confirmed tremendous productivity via successful flow test offshore
    Mozambique
--  Increased net resource estimates in the liquids-rich Eagleford Shale

“Anadarko is off to a great start in 2012 as it continues to build upon the strong operational results of 2011, while positioning the company for value-focused growth into the next decade,” Anadarko Chairman and CEO Jim Hackett said. “Anadarko’s deep portfolio provides the flexibility to allocate more than 90 percent of our 2012 E&P (exploration and production) capital toward oil and liquids-rich assets, while dialing back U.S. onshore dry gas activity in the currently over-supplied North American natural gas market environment. We expect this capital program to deliver full-year sales volumes in the range of 256 to 260 million BOE (barrels of oil equivalent), which takes into account both the effect of anticipated asset monetizations and reduced natural gas activity. We expect liquids sales volumes to comprise about 45 percent of total sales volumes in 2012, equating to an increase of approximately 25,000 barrels per day over the previous year. Additionally, the capital program reflects our continued commitment to our worldwide exploration program, which has delivered industry-leading results for several years, while discovering many new asset platforms for future growth.”

2012 Capital Program and Expectations Total 2012 capital expenditures are expected to be between $6.6 and $6.9 billion.

Offshore Mozambique, where Anadarko has made one of the most significant natural gas discoveries of the last decade, its partnership will continue to work toward achieving reserve certification in 2012 and a final investment decision (FID) in late 2013. As announced yesterday, the partnership conducted a successful drillstem test at the Barquentine-2 well that flowed at an equipment-constrained rate of 90 to 100 million cubic feet of natural gas per day (MMcf/d), which supports a well-design capability of 100 to 200 MMcf/d. Additionally, Anadarko is increasing the estimated recoverable resource range of the Offshore Area 1 discovery area by another 2 trillion cubic feet (Tcf). Anadarko’s discovery area in the deepwater Rovuma Basin is now estimated to hold 17 to 30-plus Tcf of recoverable natural gas.

“The strong results of 2011 and the list of significant achievements in just over two months in 2012 demonstrate our strategy is working,” said Al Walker, Anadarko President and Chief Operating Officer. “The announced 2012 capital program is aligned with estimated cash flow for the year, and would generate significant free cash flow at current strip prices. As an added measure to protect cash flows, we’ve locked in additional tactical hedges for oil volumes in 2012. We believe our announced 2012 capital program represents the appropriate level of investment to maintain financial discipline, while accelerating the value of our near-term oil and liquids-rich opportunities in the U.S. onshore, funding current mega-project developments, and continuing to build for the future with an active worldwide exploration program.”

[mappress]
LNG World News Staff, March 13, 2012