Oil and gas exploration company Anadarko Petroleum Corporation (APC – Analyst Report) said that it has discovered new oil, condensate and natural gas pay at an exploration well offshore Ghana.
Located in the West Cape Three Points Block, offshore Ghana, the Teak-1 discovery well was drilled to a total depth of about 10,400 feet in water depths of about 2,850 feet. The Teak-1 discovery is located more than two miles in the northeast of the Mahogany-2 well.
Anadarko said that the Teak-1 well encountered roughly 240 net feet of oil and gas reserves in five separate Campanian and Turonian-age reservoirs. Of the reserves discovered, nearly 70 net feet of oil pay and almost 108 net feet of natural gas pay are located in the Campanian, and about 46 net feet of gas condensate pay and 16 net feet of oil pay in the Turonian reservoirs of a similar age to the Jubilee field.
Anadarko believes the high-quality oil discovered in the new Campanian-age reservoirs together with additional accumulations in Turonian marks a great start to its multi-well exploration program in the West Cape Three Points Block.
Going forward, the company will continue its appraisal activity in the Campanian and deeper Turonian zones. Meanwhile, the company plans to suspend the well for future use and mobilize the rig to drill the Teak-2 prospect.
Anadarko plans to immediately drill the Teak-2 well, which will test the Campanian and Turonian-age reservoirs in a separate fault block between the Teak-1 discovery and the Jubilee field.
Owners of the majority interest in the West Cape Three Points Block are Anadarko and Kosmos Energy, each with a 30.875% working interest, while Kosmos Energy also acts as an operator of the block. Other co-owners in the block include Tullow Oil plc (22.896% working interest), the E.O. Group (3.5%), Sabre Oil & Gas Holdings Ltd (1.854%) and the Ghana National Petroleum Corporation (10% carried interest).
Based in The Woodlands, Texas, Anadarko Petroleum is primarily engaged in the exploration, development, production, gathering, processing and marketing of natural gas, crude oil, condensate and natural gas liquids. Anadarko mainly competes with ConocoPhillips (COP – Analyst Report) and Exxon Mobil Corp. (XOM – Analyst Report).
We maintain our Neutral recommendation on Anadarko shares. Also, the company retains a short-term Zacks #3 Rank (Hold).