Anadarko Petroleum Corp., Houston, (NYSE: APC) has made its third major gas discovery in 2010 in Offshore Area 1 in Mozambique's Rovuma Basin. The discovery well, Lagosta, encountered more than 550 net feet of natural gas pay in multiple high-quality Oligocene and Eocene sands.
"The Lagosta discovery, approximately 16 miles to the south of the previously announced Barquentine discovery and 14 miles to the southeast of the Windjammer discovery, significantly expands this emerging world-class natural gas province," says Bob Daniels, senior vice president, worldwide exploration. "The Lagosta discovery continues to validate our geophysical models, and we expect to keep the Belford Dolphindrillship in the basin for the foreseeable future to continue a very active exploration and appraisal program, including at least one planned drillstem test in 2011."
Daniels adds that notwithstanding additional appraisal drilling, the company's three discoveries already exceed the resource size threshold necessary to support a LNG development. "Given the global LNG trade and its indexing to the global crude market, this resource can provide tremendous economic value for the people of Mozambique, the government and the partnership," says Daniels.
The Lagosta exploration well was drilled to a current depth of approximately 13,850 feet in approximately 5,080 feet of water. The partnership plans to drill to a total depth of approximately 15,900 feet to evaluate a deeper zone. Once operations are complete at Lagosta, the partnership expects to mobilize the rig 17.5 miles to the southwest to drill the Tubarão exploration well, which is also in the 2.6-million-acre Offshore Area 1.
Anadarko operates Offshore Area 1 with a 36.5% working interest. Co-owners are Mitsui E&P Mozambique Area 1 Ltd. (20%), BPRL Ventures Mozambique BV (10%), Videocon Mozambique Rovuma 1 Ltd. (10%) and Cove Energy Mozambique Rovuma Offshore Ltd. (8.5%). Empresa Nacional de Hidrocarbonetos ep's 15% interest is carried through the exploration phase.
As of year-end 2009, Anadarko had approximately 2.3 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies.
Recommended Reading
Report: Will Civitas Sell D-J Basin, Buy Permian’s Double Eagle?
2025-01-15 - Civitas Resources could potentially sell its legacy Colorado position and buy more assets in the Permian Basin— possibly Double Eagle’s much-coveted position, according to analysts and media reports.
Ovintiv Closes Montney Acquisition, Completing $4.3B in M&A
2025-01-31 - Ovintiv closed its $2.3 billion acquisition of Paramount Resource’s Montney Shale assets on Jan. 31 after divesting Unita Basin assets for $2 billion last week.
Ovintiv Swaps the Uinta for Montney in Multiple M&A Moves
2024-11-15 - Ovintiv is expanding greatly in the Canadian Montney Shale play through a US$2.38 billion deal with Paramount Resources and exiting the newly booming Uinta Basin in Utah with a $2 billion sale to FourPoint Resources.
After Big, Oily M&A Year, Upstream E&Ps, Majors May Chase Gas Deals
2025-01-29 - Upstream M&A hit a high of $105 billion in 2024 even as deal values declined in the fourth quarter with just $9.6 billion in announced transactions.
Scout Taps Trades, Farm-Outs, M&A for Uinta Basin Growth
2024-11-29 - With M&A activity all around its Utah asset, private producer Scout Energy Partners aims to grow larger in the emerging Uinta horizontal play.