Anadarko Hits Oil Pay Offshore Sierra Leone

Anadarko Petroleum Corp. on Monday announced the Mercury-1 exploration well offshore Sierra Leone encountered approximately 135 net feet of oil pay in two Cretaceous-age fan systems. Mercury is the company s second deepwater test in the Sierra Leone-Liberian Basin and was drilled to a total depth of approximately 15,950 feet in about 5,250 feet of water by the Deepwater Millennium.

The Mercury well demonstrates that the stratigraphic trapping systems we ve identified are working, and that the petroleum system is generating high-quality oil, Anadarko Sr. Vice President, Worldwide Exploration Bob Daniels said. In the primary objective, the Mercury well encountered approximately 114 net feet of light sweet crude oil with a gravity of between 34 and 42 degrees API, with no water contact. An additional 21 net feet of 24-degree gravity crude was encountered in a shallower secondary objective.

These results continue to build momentum in the basin and enhance our confidence in the team s seismic interpretation and geologic modeling, added Daniels. We are preserving the wellbore for potential re-entry, DST (drillstem testing) or a down-dip sidetrack to further delineate the reservoir s areal extent, quality and deliverability. We also plan to continue working with the government of Sierra Leone and our partnership to accelerate exploration and appraisal activity in the area in 2011.

The Mercury discovery is located in offshore block SL-07B-10 approximately 40 miles east-southeast of Anadarko's previously announced Venus discovery. Anadarko holds an interest in more than 4.6 million acres on five deepwater blocks offshore Sierra Leone and Liberia, and has identified more than 17 prospects and leads on 3-D seismic on this acreage. Once operations are complete at the Mercury well, the company has committed to mobilize the drillship to Ghana to accelerate the appraisal program at the Owo and Tweneboa fields, which the company anticipates sanctioning in 2011.

Anadarko operates block SL-07B-10 with a 65-percent working interest. Co-owners in the block include Repsol Exploracion Sierra Leone, S.L. (25-percent working interest) and Tullow Sierra Leone B.V. (10-percent working interest).

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