Anadarko Sells Southeast Colorado Producing Properties

Anadarko Petroleum has signed a sale agreement for the divestiture of its Southeast Colorado producing properties to an affiliate of Citation Oil & Gas Corp. for $107.6 million.

The producing property package includes an estimated 9 million barrels of oil equivalent (BOE) of proved reserves as of the effective date of the sale, July 1, 2004. The properties have current net production of approximately 3,000 BOE per day and are about 80 percent operated, with approximately 90 percent of the proved reserves classified as oil and nearly 100 percent developed.

The transaction is subject to normal closing conditions and purchase price adjustments and is expected to close by year-end 2004. Transaction advisors for Anadarko for this sale are Deutsche Bank Securities Inc. and Oil & Gas Journal Exchange/Madison Energy Advisors.