The Board of Directors of Anadarko Petroleum Corporation has approved an expansion of the company's 2008 capital budget by approximately $400 million. Anadarko now expects 2008 capital expenditures, including expensed exploration, to be in the range of $4.9 to $5.1 billion. The additional capital is expected to have a positive impact on the company's 2008 production estimates and its 2008 reserve bookings.
"Anadarko is accelerating the development, production and value of our substantial inventory of nearer-term growth projects," Anadarko Chairman, President and CEO Jim Hackett said. "Stronger-than-anticipated commodity prices and the recently announced divestitures of the Peregrino field offshore Brazil and the Kaskida Unit in the deepwater Gulf of Mexico have created an opportunity to increase the company's capital expenditures in 2008. We expect the additional capital to enhance our operating metrics and generate stronger production volumes and reserve adds. As a result, we are increasing the midpoint of our full-year production guidance by 2 million BOE (barrels of oil equivalent). In addition, we are increasing our 2008 anticipated reserve bookings to at least 250 million BOE of proved reserves -- an increase of approximately 10 percent over prior estimates at the same reserve-replacement-cost target.
"In addition to the already expected double-digit production growth in the Rocky Mountain region, the additional capital will enable us to accelerate development activities in the Texas and Mid-Continent areas that offer higher-margin, lower-risk production volumes in the near term. We also plan to direct a portion of the increased capital toward exploration drilling in the emerging Marcellus Shale area in the Appalachian Basin of Pennsylvania where we have access to 2 approximately 500,000 gross acres in the fairway of the play. Separately, we expect to direct additional capital toward the enhancement of our acreage position in the deepwater Gulf of Mexico and our midstream infrastructure onshore," Hackett added.
For the full year, Anadarko expects production volumes to be in the range of 207 to 212 million BOE -- up from the previous guidance of 205 to 210 million BOE.
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