NEWS BULLETIN

August 31, 2000 --- Vol. 6, No. 42August 2000

Anadarko expands Canadian holdings, brings AEC in on ASRC acreage

Anadarko Petroleum Corp. said Aug. 31 that it has purchased interests in two Mackenzie Delta exploration licenses and sold a one-third working interest in its Arctic Slope Regional Corp. exploration area.

Anadarko, through its wholly owned subsidiary, Anadarko Canada Corp., purchased a 37.5 percent working interest in two exploration licenses in the Mackenzie Delta region of Canada's Northwest Territories from Alberta Energy Company Ltd. of Calgary. The licenses cover 530,000 acres. The purchase price was not disclosed.

In a separate transaction, AEC Oil & Gas (USA) Inc., a wholly owned subsidiary of Alberta Energy Co. Ltd., purchased from Anadarko a 33.33 percent working interest in Alaska North Slope acreage held under exclusive lease option by Anadarko. The lease covers 3.1 million acres under option from the Arctic Slope Regional Corp. in the Foothills region south of Prudhoe Bay.

The purchase price was not disclosed. Anadarko will serve as operator, with a 66.67 percent working interest.

Anadarko said the Mackenzie Delta interests will further the company's long-term interest in moving gas to Lower 48 markets.

"We believe Arctic gas will find its way to Canadian and American consumers through one or more of the pipelines being proposed from Canada and Alaska. Because Anadarko also holds a significant acreage position on the Alaska North Slope, this purchase puts us in a better position to have gas available for delivery into whatever pipeline is ultimately built, whether from Alaska or Canada or both," Robert J. Allison, Anadarko chairman and CEO, said in a prepared statement.

This is Alberta Energy's second acquisition of Alaska interests.

Phillips Alaska Inc. and Chevron U.S.A. Inc. said Aug. 3 that they had formed a new venture agreement for exploration and development on Alaska's North Slope with Alberta Energy Co. Oil and Gas (USA) Inc. covering nearly 150,000 acres.

The alliance provides for proportional ownership of seven leases containing approximately 28,504 acres offshore Prudhoe Bay in the proposed McCovey unit. Under the agreement, Alberta Energy will earn a 33.3 percent interest in the area leases through a farm-out agreement in the initial well. In addition, Phillips Alaska and Chevron will each hold a 33.3 percent interest in the proposed unit.

The second part of the alignment agreement includes approximately 114,262 acres in the Grizzly Gomo prospect area south of the Kuparuk oil field. Alberta Energy will earn a 20 percent interest in the area and Phillips Alaska and Chevron will each hold a 40 percent interest.


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