Anadarko and Partners Makes Oil Discovery in Algeria

Anadarko Petroleum, Sonatrach and partners Maersk Olie Algeriet AS and Eni/Lasmo Oil (Algeria) Ltd, have made an oil discovery at the Hassi Berkine North East prospect on Block 404 of the Berkine Basin, Algeria.

The exploration well HBNE-1 was drilled to a total depth of 3,300 metres at a location five kilometres east of the Hassi Berkine field. The well encountered 16 metres of net oil pay in the TAGI reservoir, and has tested at a rate of 4,092 barrels of oil per day and 6.7 million cubic feet per day of gas through a 36/64 inch choke at a flowing tubing pressure of 2201 psi.

Rex Alman, managing director, Anadarko Algeria Company, said: "We are delighted to begin the year with the news of this discovery, located close to our existing infrastructure in Anadarko's core Hassi Berkine area. We are considering a number of development options for placing this discovery on production quickly and cost-effectively.

"HBNE is our first successful well since resuming our exploration drilling program in Algeria in October 2002, and we hope to continue this success into 2003, when a number of exploration wells are planned. Our latest exploration well, SFSW, spudded in mid-January. We have also acquired 1,031 kilometres of 2D seismic data, which is being evaluated, and we continue to build up our prospect inventory."

The Sonatrach/Anadarko Association has discovered over 2 billion barrels of oil since the Production Sharing Agreement was signed in 1989. Under terms of the agreement, Anadarko and its partners fund Sonatrach's 51% share of exploration costs and are entitled to recover these costs out of production in the exploitation phase.