Anadarko Completes $118M Gulfstream Acquisition

Anadarko Petroleum Corp. has completed the acquisition of 100% of the common shares of Canadian-based Gulfstream Resources Canada Ltd., an international oil and gas company with assets in Qatar and Oman. The acquisition ups Anadarko's proved reserves by 70 MMboe.

Anadarko reported that the shares were acquired for C$2.65/share, for a total transaction value of approximately U.S.$118 million plus the assumption of U.S.$10 million in Gulfstream debt. Anadarko Canada, a subsidiary of Anadarko, carried out the acquisition that was first announced in late June.

Through the Gulfstream purchase, Anadarko Canada will have working interests in three Qatar Blocks and one Oman Block. In Oman Block 30, the first horizontal well is being drilled in the Hafar field as part of the company's developing strategy. Anadarko estimates that gross natural gas production will average 84 MMcf/d when the field is fully developed in mid-2002. Gulfstream is the operator on the block with a 100% interest.

The Qatar blocks also look promising the company said. In Block 12, net production from the Al Rayan field is currently more than 4,500 b/d of oil, with redevelopment of the field expected to come in the next year. The redevelopment is expected to more than double Anadarko's production from the Al Rayan field. Qatar Block 13 is still in developmental planning stages due to a dispute over boundaries. The perimeter of the block has been in dispute since 1986, but was recently settled by the International Court of Justice in spring 2001. Qatar Block 11 also has two exploration wells planned for this year.

Gulfstream owns a 65% contract interest in Blocks 12 and 13 with BP acting as operator. Wintershall operates Block 11 with Gulfstream holding a 49% interest.

Anadarko said Gulfstream's operations will continue as part of its international exploration and operations groups. These groups oversee many of Anadarko's international activities from the Houston headquarters.

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