Anadarko Petroleum Corporation announced that it has signed an agreement with Texaco Exploration and Production Inc. for an exploration program in the Gulf of Mexico's sub-salt play. Under the agreement, Anadarko will acquire rights to future exploration in certain depths on 82 lease blocks in which Texaco has interests. The tracts are located offshore Louisiana, in water depths ranging from 85 to 2,400 feet. The 82 blocks comprise a total of approximately 400,000 gross acres. Anadarko's working interests in new prospects that it identifies and drills will vary depending on current Texaco partners.
As part of the agreement, Texaco has the option to retain a working interest in each exploratory prospect by participating in the initial exploration well drilled
by Anadarko. Texaco has an average working interest of 50% in the 82 blocks,which are subject to the agreement. Financial terms of the agreement were not disclosed. The transaction is expected to close by the end of July 1999.