Anadarko, Partners Hit Oil Pay Offshore Ghana

Anadarko Petroleum Corp.
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Anadarko Petroleum Corp. on Monday announced an oil discovery at the Mahogany-1 exploration well on the deepwater West Cape Three Points Block offshore the Republic of Ghana. The well, which is located in a water depth of 4,330 feet, has encountered a gross hydrocarbon column of approximately 885 feet with 312 feet of net stacked pay in a Cretaceous sandstone reservoir.

To date, the well has been drilled to a depth of approximately 12,083 feet and is planned to reach a total depth of 13,780 feet. Once the well reaches target depth, it will be suspended pending further evaluation and appraisal drilling.

Anadarko is the technical operator of the well with a 30.875% interest. Kosmos Energy is the block operator and holds a 30.875% interest. Other partners include Tullow Ghana Limited, an affiliate of Tullow Oil plc, with a 22.896% interest and Sabre Oil and Gas Limited with a 1.854% interest in the block. The E.O. Group, a Ghanaian oil and gas company, holds a 3.5% interest in the block. The Ghana National Petroleum Corporation will be carried through the exploration and development phases with a 10% participating interest.

"We are encouraged by the results of the Mahogany-1 well, and we look forward to continued cooperation with the Republic of Ghana as we work with our partners to appraise this discovery," said Bob Daniels, Anadarko's Senior Vice President, Worldwide Exploration. "This is an exciting start to our 2007 exploration program offshore West Africa, which includes two additional deepwater exploration wells this year - one offshore the Republic of Benin and one offshore Nigeria."

The Mahogany-1 well was drilled using the "Belford Dolphin" deepwater drillship, which is under long-term contract to Anadarko. Once the "Belford Dolphin" completes drilling operations on the Mahogany-1 well, Anadarko will move it to drill the Sota-1 well in Block 4 offshore Benin, in which it holds a 40% interest and is also the operator. The drillship stopped in West Africa to drill the Mahogany-1 and Sota-1 exploration wells before it moves to the Gulf of Mexico to drill additional tests in Anadarko's 2007 exploration program.