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Anadarko takes lead role in Canada’s north Reports natural gas discovery in northwestern Alberta; plans full slate of exploration, development activities for 2003 from cap-ex of C$540 million Gary Park PNA Canadian Correspondent
Anadarko Petroleum Corp., having absorbed takeovers of two Canadian companies in 2001, is fast-emerging as one of the leading players in Canada’s northern regions.
Spurred on by improved 2002 earnings and a natural gas discovery in northwestern Alberta, the Houston independent has set a capital spending program of C$540 million for its Canadian properties this year.
Its program is expected to see it become the pacesetter in the Northwest Territories, notably in the Fort Liard gas play of the lower Northwest Territories, where it is drilling five exploratory wells, has five more planned and holds permits for two development wells.
The company announced Feb. 27 that it has made a gas find in the Saddle Hills area, boosting its proven and probably reserves in the Alberta multi-zone play to 130 billion cubic feet from 90 billion cubic feet and a mere 6 billion cubic feet when it started exploration in late 2001.
Anadarko Canada president Bob Daniels said Saddle Hills is now a core development area, with C$68 million earmarked for development drilling, seismic and midstream activities to extend the play. Another five exploratory wells and nine development wells are scheduled for other zones in the same play, where Anadarko holds 35,000 net acres.
For all of Canada, Anadarko expects to complete 322 development and 43 explorations wells this year, targeting an increase in output of more than 10 percent to 33 million barrels of oil equivalent, after allowing for last year’s sale of heavy oil producing properties.
If it achieves that level, the company will rely on Canada for 16 percent of its worldwide volumes. British Columbia also growth area In addition to Saddle Hills and Fort Liard, primary growth areas include the Slave Point trend in northeastern British Columbia, where eight finds were reported in 2002; the Wild River area of Alberta’s Deep Basin; and a number of tight-gas plays in Western Canada. For those areas, the breakdown includes: two exploration and 46 developments wells to double output from in the Deep Basin tight play, where Anadarko holds 238,000 net acres; C$50 million in 130 development wells in the tight plays in Saskatchewan’s Hatton field and British Columbia’s Halfway River play; C$68 million for nine exploration and seven development wells in Slave Point; and delineation in British Columbia’s Monkman prospect where Anadarko, along with Talisman Energy Inc., National Fuel Exploration Corp. and Oiltec Resources Ltd. last year reported a regional play that could hold in excess of 1 trillion cubic feet of recoverable reserves.
Anadarko announced earnings for the final quarter of 2002 soared to US$309 million from US$108 million a year earlier, while year-end earnings rocketed to US$825 million from US$183 million, despite a drop in year-over-year revenues to US$3.86 billion from US$4.72 billion in 2001.
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