Anadarko Expands Saddle Hills Gas Play

Anadarko Petroleum has drilled a natural gas discovery in the Saddle Hills area of Alberta, expanding the proven and probable reserves from 90 billion cubic feet (Bcf) previously to 130 Bcf of gas from this multi-zone play.

The Saddle Hills 15-34-75-7W6 discovery well, drilled into the Devonian, is currently flowing at a rate of 15.9 million cubic feet (MMcf) of gas per day. With this 100 percent-owned well online, total production from Saddle Hills increased to 73 MMcf per day from a total of nine wells, compared with just 2 MMcf per day a year ago.

Prior to Anadarko's activity increase in this area starting in late 2001, Saddle Hills had 6 Bcf of proven reserves. "Our exploration success and impressive production growth confirm Saddle Hills as a core development area for Anadarko," said Bob Daniels, President of Anadarko Canada Corporation. "We will continue to further define the Devonian potential this year, with two more exploratory wells and three development wells planned."

Delineation of this discovery well will be a key focus for Anadarko in 2003, with nearly C$68 million allocated to development drilling, seismic and midstream activities to extend the play.

An additional five exploratory and nine development wells also are planned for other zones in the same play.

Anadarko holds 35,000 net acres in the Saddle Hills area.