Building on the success it has enjoyed so far in its Bossiernatural gas play in East Texas, Anadarko Petroleum Corp. plans tospend nearly a third more in the region this year, almost $535million total, to expand its development program and increase itsexploration prospects.

Last year, Houston-based Anadarko drilled 142 development wellsand increased its lease holdings for the play by 150% to 250,000acres in East Texas and North Louisiana. It produced 60 Bcf fromthe two areas of its Bossier development in 2000, up from 22 Bcf in1999. This year, it expects to increase Bossier production to 90Bcf.

“The Bossier accounted for over one third of our total gasproduction last year and became our single biggest U.S. natural gasfield – bigger than the giant Hugoton gas field in southwestKansas, where Anadarko began,” said COO John N. Seitz. “The steadyand predictable performance of these Bossier wells, plus our veryhigh success rate, good cost control and improvements in reservoirproduction through fracture stimulation combine to make thisproject one of the most attractive investments in Anadarko’sportfolio.”

More than half of the new 2001 budget for Bossier, nearly $420million, is slated for drilling and completion of 36 newexploratory and 186 development wells, and another $100 millionwill be spent on lease acquisition, expansion and upgrades ofgathering lines and treating facilities.

Seitz said that last year, Anadarko concentrated on expandingits lease position in East Texas. “Now we’re in a good position topursue a more extensive drilling campaign, and we have theresources, the people and the rigs to do that. Our leadershipposition, confirmed by our exploratory drilling successes lastyear, gives us the confidence to expand the limits of the play.”Overall, Seitz said Anadarko would increase its Bossier exploratoryprogram almost 70% this year.

Seven wildcats drilled last year in East Texas encounteredcommercial gas amounts in the Bossier. Along a similar trend inNorth Louisiana, one wildcat well drilled was not commercial andanother is still being evaluated. Most successful last year was theBlair A-3, an extension of the Dew field in Freestone County, TX,which flowed at a rate of 50 MMcf/d with 4,600 pounds of casingpressure. Another successful well was Thigpen A-1, a13,500-foot-deep Dew field extension, which had initial productionof 15.7 MMcf/d with 3,400 pounds of casing pressure.

“Our development success rate has been phenomenal,” said MikeCochran, vice president of exploration. “Each new well providesAnadarko additional confirmation about the Bossier petroleum systemmodel. We analyze each new data point quickly, incorporate theinformation into our regional models, and then we act on this newinformation. This constant refining of our models gives us anadvantage in technical understanding and immediately directs us tonew expansion areas and opportunities.”

Currently, Anadarko has 27 rigs drilling for the Bossier sandsin East Texas and six drilling a similar type play in JacksonParish, LA. It expected to drill its 300th well in the Bossier thisweek, and by the end of 2001 expects to have 500 producing wells inthe region.

Carolyn Davis, Houston

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