Exhibit 99
Anadarko Announces Details of 2004 Capital Spending Plan
HOUSTON--(BUSINESS WIRE)--Feb. 6, 2004--Anadarko Petroleum
Corporation--(NYSE:APC)
-- Projected spending between $2.6 billion and $2.9 billion
-- Focused on adding high-margin reserves
The Board of Directors of Anadarko Petroleum Corporation
(NYSE:APC) has approved capital spending for 2004 in the range of $2.6
billion to $2.9 billion. The company spent just under $2.8 billion in
2003.
"Anadarko's 2004 capital program offers us flexibility to pursue a
wide range of opportunities based on actual cash flow, and we have a
deep portfolio of projects in the event projected cash flows remain
strong," said Jim Hackett, Anadarko president and chief executive
officer.
Anadarko has allocated $2.3 billion to $2.6 billion for worldwide
exploration and development. Approximately 80 percent will be
designated for development and about 20 percent for exploration. The
company expects to operate an average of about 70 drilling rigs in
North America during 2004, compared with 57 during 2003.
"We're directing capital to the areas that have shown the best
performance and rate of return -- primarily the Lower 48 onshore where
we've achieved excellent results," Hackett said. "Our objective is to
add high-margin oil and gas reserves at better-than-average finding
costs.
"Anadarko made a number of significant discoveries in 2003, and a
top priority this year will be to delineate and develop those
discoveries. Similarly, we plan to carry out a focused exploration
program in North America, North Africa and the Middle East," he added.
Anadarko's overall plan includes about $300 million for
capitalized interest and overhead.
Based on its capital program, the company anticipates production
volumes will be between 193 million and 199 million barrels of oil
equivalent (BOE) in 2004. This is an increase of 1 to 4 percent over
2003 production of 192 million BOE.
LOWER 48 ONSHORE
Anadarko expects to spend about half of its exploration and
development budget in the Lower 48 onshore to drill nearly 900 wells.
In North Louisiana, the company will continue developing the
Vernon field. About 80 wells are planned in this area in 2004, and
natural gas production is expected to grow from about 190 million
cubic feet per day (MMcf/d) (gross) at the end of 2003 to more than
300 MMcf/d (gross) by the end of 2004.
In East Texas, roughly 120 development and five exploration wells
are planned for 2004 in the Bossier natural gas play. Development of
the Holly Branch, Dowdy Ranch and Bald Prairie areas will be the
emphasis.
In Central Texas, Anadarko plans to drill about 75 wells in the
Giddings and Brookeland fields in 2004. The company expects to
continue a successful program of re-entering existing shallow wells
and recompleting them to the Austin Chalk, extending the Brookeland
field and stimulating existing wells with water fracture treatments.
Anadarko expects to increase spending in West Texas this year to
drill nearly 80 natural gas wells. The program will aim to continue
development of the Ozona field and further delineate the Haley tight
gas play in the Delaware basin where the company has seen encouraging
initial results.
The company's program for the Western States is highlighted by
enhanced oil recovery (EOR) projects at the Salt Creek field and
Monell Unit in Wyoming, where production is predicted to increase
substantially over the next several years. To stimulate production,
the EOR projects are injecting carbon dioxide (CO2), which is being
transported across the state through a newly completed 125-mile
pipeline. Facilities work at Salt Creek and Monell will continue as
multiple phases of the CO2 flood are expected to progressively come
online in 2004 and beyond.
In conventional development drilling in Wyoming, Anadarko plans to
participate in about 125 natural gas wells throughout the greater
Green River Basin. As many as 100 of these wells will be drilled in
the Wamsutter field; roughly 35 percent will be Anadarko-operated. Up
to nine deep wells are planned in the Table Rock and Higgins fields
where Anadarko completed an expansion of its gas sweetening plant in
2003. Additionally, the company is drilling an exploration well in the
Hanna Basin in Wyoming. The well -- which targets a potentially
extensive deep-basin, tight-sands gas play -- is expected to reach
target depth this summer.
The company anticipates drilling as many as 130 coalbed methane
wells in the County Line, East Rock Springs and Atlantic Rim areas of
Wyoming this year. The company currently has three full-scale fields
producing coalbed methane and four additional pilot projects underway.
Overall, onshore Lower 48 production is expected to increase about
1 to 2 percent over the 2003 volumes of 109 million BOE -- offsetting
the 2004 depletion of the Kent Bayou field in south Louisiana that
contributed about 5 million BOE of production last year.
CANADA
Anadarko expects to drill about 175 development and 40 exploration
wells in Canada during 2004, with a spending plan that ranges from
$375 million to nearly $425 million. The company expects to operate an
average of about 10 drilling rigs for the year.
Exploration focus areas will include the Fort Liard area of the
southern Northwest Territories, the Adsett area of northeastern
British Columbia, the British Columbia and Alberta foothills, and the
Peace River Arch of northern Alberta. Additionally, the company
anticipates drilling a significant exploration test in the Mackenzie
Delta in 2004.
Development drilling and additional plant expansion for the Wild
River area is planned for 2004. Over the last year, Anadarko has
achieved 100 percent drilling success and significantly increased
production in the Wild River area, ending the year at 88 MMcf/d of
gas.
Production from Canada is expected to increase 3 to 5 percent over
2003's volumes of more than 30 million BOE. Growth is expected
primarily from development projects in the Wild River deep-basin area
and Northeast British Columbia.
ALGERIA
Anadarko's capital program for Algeria is expected to remain
roughly flat compared to 2003, with spending of less than $70 million
and an increased emphasis on exploration in 2004. As many as nine
exploration and delineation wells are planned, including the first
wells on Block 403c/e and 406b acreage, as well as appraisal drilling
on Block 404.
The Ourhoud field became fully operational during the first half
of 2003 with facility capacity reaching 230,000 barrels per day (bpd)
of oil. Anadarko plans to drill or participate in a total of about 25
development wells to further develop the Ourhoud and Block 404 fields
in 2004.
Algerian net production is expected to increase more than 5
percent compared to 2003's 19 million BOE.
GULF OF MEXICO
Anadarko plans to spend about $600 million for projects in the
Gulf of Mexico.
Under the development program, as many as six deepwater wells are
planned in the K2 and K2-North areas where first production is
expected in 2005. Additionally, the company plans to begin installing
sub-sea tie backs from these fields to the newly installed Marco Polo
platform, which is expected to come online in mid-2004.
In the subsalt, the company expects to complete platform
construction for the Tarantula discovery, which is expected to come
online by early 2005 and eventually reach a peak net production of
about 40 MMcf/d of gas and 8,000 bpd of oil.
In addition, nearly 20 conventional development wells are planned
on the Outer Continental Shelf.
Anadarko plans to drill an estimated seven exploration wells in
the Gulf of Mexico this year, of which five are located in deepwater
acreage -- including the Eastern Gulf. The company is in discussions
with partners to put in place an Eastern Gulf development plan that,
if sanctioned, would enable Anadarko to begin booking reserves in 2004
for its recent discoveries.
The company's Gulf of Mexico development and infrastructure
projects are expected to add reserves and provide for substantial
production growth in 2005.
ALASKA
In Alaska, Anadarko expects to participate in a three- to
four-well program at Moose's Tooth in the NPR-A, west of the Alpine
field. Additionally, Anadarko will participate in the acquisition of
3-D seismic data to further evaluate Alpine satellite opportunities.
A facility expansion at the Alpine field, where Anadarko holds a
22-percent working interest, is scheduled to be completed around the
end of the year. The infrastructure project is expected to increase
gross production capacity by 5,000 bpd to 110,000 bpd of oil. In
addition, 12 wells are planned as part of the ongoing Alpine field
development.
Net annual production from Alpine is expected to remain about the
same as last year -- approximately 6 million BOE.
OTHER INTERNATIONAL
In other international activity, Anadarko plans to spend about
$100 million -- primarily for ongoing development projects in
Venezuela and exploration drilling in Qatar and Tunisia.
In Venezuela, Anadarko plans to participate in about 15
development wells and more than 50 workovers in its
45-percent-interest Oritupano-Leona field.
Production from these areas is expected to increase modestly over
the 8 million BOE produced in 2003.
ANADARKO WEBCAST SCHEDULED FOR FEB. 23
On Feb. 23, Anadarko will host a live webcast with investors and
analysts to discuss 2004 activity and other areas of interest. More
details will be posted at www.anadarko.com prior to Feb. 23. A replay
of the presentation will also be made available on the company Web
site.
Anadarko Petroleum Corporation is one of the world's largest
independent oil and gas exploration and production companies, with
proved reserves of 2.5 billion barrels of oil equivalent at year-end
2003. Anadarko's operational focus extends from the Gulf of Mexico and
prolific Texas, Louisiana and Mid-Continent basins, up through the
western U.S. and Canadian Rockies and onto the North Slope of Alaska.
Anadarko also has significant production in Algeria, Venezuela and
Qatar and is executing strategic exploration programs in several other
countries. More information is available at www.anadarko.com.
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities and Exchange Act of 1934. Anadarko believes that its
expectations are based on reasonable assumptions. No assurance,
however, can be given that its goals will be achieved. A number of
factors could cause actual results to differ materially from the
projections, anticipated results or other expectations expressed in
this release. While Anadarko makes these forward-looking statements in
good faith, neither Anadarko nor its management can guarantee that the
anticipated future results will be achieved. Anadarko discloses proved
reserves that comply with the Securities and Exchange Commission's
(SEC) definitions. Additionally, Anadarko may disclose estimated
reserves, which the SEC guidelines do not allow us to include in
filings with the SEC. See Regulatory Matters and Additional Factors
Affecting Business in the Management's Discussion and Analysis
included in the company's 2002 Annual Report on Form 10-K.
CONTACT: Anadarko Petroleum Corporation, Houston
Media Contacts:
Teresa Wong, 832-636-1203
teresa_wong@anadarko.com
or
Lee Warren, 832-636-3321
lee_warren@anadarko.com
or
Margaret Cooper, 832-636-8355
margaret_cooper@anadarko.com
or
Investor Contacts:
David Larson, 832-636-3265
david_larson@anadarko.com
or
Stewart Lawrence, 832-636-3326
stewart_lawrence@anadarko.com