Anadarko Improves 2003 Finding & Development Cost

Anadarko Petroleum announced its 2003 finding and development (F&D) costs are expected to be at the low end of its previous guidance of $7.50 - $8.50 per barrel of oil equivalent (BOE), a significant improvement over 2002 results.

"Anadarko's capital program is delivering results," Robert J. Allison, Jr., Anadarko chairman, president and CEO said. "So far this year, we've had discoveries and development successes in each of our core areas: the Gulf of Mexico, U.S. onshore, Canada and Algeria. We're seeing better than expected success in our Bossier and Vernon plays in East Texas and North Louisiana, and in our enhanced oil recovery properties in Wyoming.

"As a result, I'm pleased to report that, while there are still a lot of moving parts, I fully expect our F&D costs for 2003 to end up near the low end of our $7.50 to $8.50 guidance range," Allison added. "With more success during the remaining part of this year, we may achieve even better numbers.

"We're also making progress in lowering overhead costs," Allison said. "In July, we launched an effort to cut more than $100 million off our annual cost structure. That means we're freeing up more money to invest in exploration and development that will add reserves and long-term value for shareholders."

Allison noted that the company has intensified its focus on doing what Anadarko has done historically -- finding and producing oil and gas at low cost.