Untitled Document
Untitled Document

Anadarko Phobos discovery in deepwater Gulf of Mexico shows promise

Anadarko Petroleum Corp. (NYSE: APC) has made another oil discovery in the deepwater Gulf of Mexico. The Phobos-1 well encountered approximately 250 net feet of oil pay in Lower Tertiary-aged reservoirs.

“Our 2013 Gulf of Mexico exploration program is off to an outstanding start, as Phobos marks our third significant deepwater success this year,” Anadarko Sr. Vice President International and Deepwater Exploration Bob Daniels said. “Phobos is our first well in the previously untested Sigsbee Escarpment area of the Gulf of Mexico and successfully tested a significant four-way structure in the Lower Tertiary. Phobos’ close proximity to our Lucius project is expected to further enhance the economics of this potential future development.”

Analysts at Jefferies LLC noted Thursday that the potential could be sizable. While no oil was encountered in the Pliocene/Miocene/Wilcox targets, the oil discovery in the Lower Tertiary has low viscosity and the reservoir has good (15%) porosity, the analysts wrote in a note to investors Thursday.

The prospect “could have more than 100 mmboe of resource potential assuming the four-way structure has 8,000 acres of closure,” the analysts said. “In comparison, the nearby Lucius prospect has a resource potential of more than 300 mmboe.”

The Phobos discovery, located in Sigsbee Escarpment block 39, was drilled to a total depth of 28,675 feet in approximately 8,500 feet of water, approximately 11 miles south of Anadarko’s Lucius discovery, which is under development. Anadarko currently is incorporating the data from the Phobos well to determine future activities.

Anadarko is the operator of the Phobos discovery with a 30% working interest. Other co-owners in Phobos are Plains Exploration & Production Co. (NYSE: PXP) with a 50% working interest and Exxon Mobil Corp. (NYSE: XOM) with a 20% working interest.

Overall, the Phobos discovery adds incremental upside to shares, said Jefferies, who noted shares of Anadarko were trading at its P1 of $83/shr.

 

Related Articles

Enterprise elects board of its general partner

04/24/2014 Enterprise Products Partners LP reports the election of the board of directors for its general partner. The board is made up of nine members, five of whom are independent, non-management directors,...
Rig operating in the Marcellus Shale

Moody's: Marcellus Shale one of the most profitable regions in US

04/09/2014 Exploration and production companies that extract natural gas from the Marcellus Shale will benefit more than natural gas producers elsewhere in North America, even if gas prices weaken, Moody’s In...

Ultra Petroleum makes executive leadership transition

04/02/2014 Ultra Petroleum Corp. reports that William Picquet intends to retire from the company at the end of April. In connection with Picquet’s retirement, Ultra's board of directors has promoted Brad John...

QED Energy Associates appoints Northrup as president and CFO

03/28/2014 QED Energy Associates, which provides engineering technician consulting and sourcing, has appointed Ashley Northrup as QED's president. She will retain her role as CFO and is a partner in the firm.

ONGC names Sarraf as chairman and managing director

03/17/2014

Dinesh Kumar Sarraf is the new chairman and managing director of ONGC and chairman of ONGC Group of Companies.

More Oil & Gas Financial Articles

Enterprise elects board of its general partner

Thu, Apr 24, 2014

Enterprise Products Partners LP reports the election of the board of directors for its general partner. The board is made up of nine members, five of whom are independent, non-management directors, in accordance with New York Stock Exchange listing standards.

Rig operating in the Marcellus Shale

Moody's: Marcellus Shale one of the most profitable regions in US

Wed, Apr 9, 2014

Exploration and production companies that extract natural gas from the Marcellus Shale will benefit more than natural gas producers elsewhere in North America, even if gas prices weaken, Moody’s Investors Services said in a recent report.

Ultra Petroleum makes executive leadership transition

Wed, Apr 2, 2014

Ultra Petroleum Corp. reports that William Picquet intends to retire from the company at the end of April. In connection with Picquet’s retirement, Ultra's board of directors has promoted Brad Johnson to the role of senior vice president of operations, effective April 1.

QED Energy Associates appoints Northrup as president and CFO

Fri, Mar 28, 2014

QED Energy Associates, which provides engineering technician consulting and sourcing, has appointed Ashley Northrup as QED's president. She will retain her role as CFO and is a partner in the firm.

ONGC names Sarraf as chairman and managing director

Mon, Mar 17, 2014

Dinesh Kumar Sarraf is the new chairman and managing director of ONGC and chairman of ONGC Group of Companies.

Most Popular

Oil & Gas Jobs

Search More Job Listings >>
Subscribe to OGFJ