Anadarko Expands Gulf of Mexico Discovery

Anadarko Petroleum reports that its K2 North No. 2 well encountered a total of 165 feet of net oil pay. With the field's oil-water contact still not established, this delineation well increases the size of the K2 North discovery.

The K2 North field, located on Green Canyon Block 518 in the Gulf of Mexico, is expected to begin production through the Marco Polo platform in 2005. Anadarko has a 100 percent working interest in the block.

"The K2 North field is an example of how Anadarko is building its Gulf of Mexico deepwater program to be a core component of the growth strategy," said Jim Hackett, Anadarko President and CEO. "We have yet to determine the field limits, but the delineation well extends the discovery significantly."

The well's bottom-hole location is located about one mile northwest of Anadarko's K2 North No. 1 discovery, which was announced in November 2003.

The No. 2 well was spudded in December 2003 in about 4,000 feet of water and was drilled to a total depth of 29,180 feet. Noble Drilling's semisub, Noble Paul Romano is remaining on location to further delineate the field.

"This well also has positive implications for the neighboring K2 field, in which we hold a 52.5 percent interest," added Hackett.

The K2 field will also be tied back to the Marco Polo platform with first production expected in 2005. Anadarko is currently completing the first of six pre-drilled development wells from its Marco Polo field, which is on schedule for first production in July 2004.

Anadarko currently has access to 538 blocks in the Gulf of Mexico; 243 of those are in deepwater.