Anadarko test well hits giant reservoir in GoM

BANGALORE (Reuters) – Anadarko Petroleum Corp (APC.N) said one of its deepwater test wells in the Gulf of Mexico (GoM) hit oil and gas bearing sands in what could be one of its biggest finds ever, sending its shares up 4 percent.

The company said it encountered 600 net feet of high quality oil bearing sands with additional gas bearing sands at an appraisal well, which was drilled to a total depth of about 20,600 feet in about 7,100 feet of water.

“This is triple the 200 net feet of primarily natural gas pay found in the discovery well and Lucius is now likely to be APC’s largest ever GoM discovery,” Citigroup analyst Robert Morris wrote in a research note to clients.

Morris said today’s results increase the oil potential from the find to the 250-500 million barrels of oil equivalent (mmboe) range, up from the earlier generic target size of 100 mmboe.

Reuters