Anadarko Petroleum Corp. has made a large natural gas discovery in the Saddle Hills area of Alberta, expanding the proven and probable reserves from the multi-zone play to 130 Bcf from the previous estimates of 90 Bcf. Before Anadarko began to step up its activity in Saddle Hills late in 2001, the play held an estimated 6 Bcf of proven reserves.

The Saddle Hills discovery well, drilled into the Devonian formation, is currently flowing at a rate of 15.9 MMcf/d, the company said. The Houston-based explorer, which owns 100% interest in the well, said total production now online has increased to 73 MMcf/d from nine wells, compared with just 2 MMcf/d a year ago. Anadarko holds 35,000 net acres in the Saddle Hills area.

“Our exploration success and impressive production growth confirm Saddle Hills as a core development area for Anadarko,” said Bob Daniels, president of Anadarko Canada Corp. “We will continue to further define the Devonian potential this year, with two more exploratory wells and three development wells planned.”

Daniels said delineation of this discovery well will be a key focus for Anadarko in 2003, with nearly C$68 million allocated to development drilling, seismic and midstream activities to extend the play. An additional five exploratory and nine development wells also are planned for other zones in the same play.

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