Anadarko Well Hits New Deep Water Gulf of Mexico Oil Discovery

04 25, 2013 by Fox Business

Anadarko Petroleum Corp. (APC) discovered a new deep water Gulf of Mexico oil play, as the company's Phobos-1 well entered about 250 net feet of high-quality oil.

The energy producer said the Phobos-1 well was drilled to a total depth of 28,675 feet in roughly 8,500 feet of water, about 11 miles south of Anadarko's Lucius discovery, which is under development.

The company said it is incorporating data from the Phobos well to determine future activities.

"Phobos marks our third significant deep water success this year," said Bob Daniels, senior vice president international and deep water exploration.

The well is the company's first in the previously untested Sigsbee Escarpment area of the Gulf of Mexico, said Mr. Daniels, adding that the well's close proximity to the company's Lucius project is expected to "further enhance the economics of this potential future development."

Anadarko is the operator of the Phobos discovery with a 30% working interest.

Co-owners include Plains Exploration & Production Co. (PXP) with a 50% working interest and Exxon Mobil Corp. (XOM) with a 20% working interest.

Anadarko's operations in shale fields such as the Eagle Ford in south Texas and the Wattenberg in northeast Colorado have driven higher production in recent quarters. The company has also had a string of exploration successes off the coast of Mozambique.

Earlier this month, the company said it discovered a new natural-gas field offshore Mozambique and said it had completed drilling a well offshore Kenya.

Shares closed Wednesday at $83.32 and were inactive premarket. The stock has risen 15% since the start of the year.