2. First Quarter 2008 ANADARKO PETROLEUM CORPORATION
Forward Looking Statement
This report contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Anadarko
believes that its expectations are based on reasonable
assumptions. No assurance, however, can be given that such
expectations will prove to have been correct. A number of
factors could cause actual results to differ materially from the
projections, anticipated results or other expectations
expressed in this presentation. Anadarko cannot guarantee
that it will successfully execute on its drilling and
development plans or meet its production guidance. See “Risk
Factors” in the company’s 2007 Annual Report on Form 10-K
and other public filings and press releases. Anadarko
undertakes no obligation to publicly update or revise any
forward-looking statements.
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3. First Quarter 2008 ANADARKO PETROLEUM CORPORATION
Overview
– RIG ACTIVITY –
1Q08 Rig Activity
Operated Non-Operated Total
24
Rockies 75
51
25
Southern 32
7
49
LOWER 48 107
58
2
Alaska 4
2
– CAPITAL SPENDING – 6
Gulf of Mexico 8
2
57
TOTAL U.S. 119
62
2
INTERNATIONAL 8
6
! The capital program totaled $1,056 million during the quarter, of
59
TOTAL COMPANY 127
68
which $782 million (74%) was dedicated to ongoing U.S. E&P
activity. Full-year capital expenditures are expected to be between
$4.9 and $5.1 billion with approximately 20% allocated to
– VOLUMES –
exploration.
! Production volumes for the 1st Qtr were 53 MMBOE, which
Capital Spending
exceeded guidance (50-52 MMBOE).
4Q07
1Q08
$ MM $ MM
Net Volumes
309
307
Rockies
1Q08 4Q07
158
189
Southern
Gas Liquids
Gas Liquids
467
496
LOWER 48 MMcf/d MBbl/d
MMcf/d MBbl/d
17
31
Alaska 45
970
Rockies 909 41
221
255
Gulf of Mexico 24
564
Southern 589 23
705
782
TOTAL U.S. 69
1,534
LOWER 48 1,498 64
99
102
INTERNATIONAL 20
0
Alaska 0 22
133
135
Midstream 70
604
Gulf of Mexico 522 68
60
37
Capitalized Items / Other 159
2,138
TOTAL U.S. 2,020 154
997
1,056
TOTAL COMPANY 68
0
INTERNATIONAL 0 83
2
-4
Midstream -7 3
0
3
Other 0 0
229
2,137
TOTAL COMPANY 2,013 240
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4. First Quarter 2008 ANADARKO PETROLEUM CORPORATION
Gulf of Mexico
LOUISIANA
TEXAS
New Orleans
Baldpate
Blind Faith
Net Volumes
1Q08 4Q07 Nansen
MMcf/d MBbls/d MMcf/d MBbls/d
604 522 68
TOTAL 70
Independence
Boomvang Hub
K2 Complex
– PRODUCING PROPERTIES –
Gunnison
APC acreage
Red Hawk
K2 Complex Constitution
APC facilities
Green Canyon 561/562/605/606/518/563/607 (APC 42% WI)
Green Canyon 608 (Marco Polo Field - APC 100% WI Suprasalt)
Updip of HKO
HKO to LKO
! At the K2 complex, we have completed drilling the Green Canyon Upside
Undrilled Potential
561 #2 development well. This down-dip appraisal well helped Anadarko WI
define the extent of the oil-bearing reservoirs that are present in the Flowlines
2008 Down-Dip Locations
unit's six producing wells and also encountered new off-structure,
oil-bearing sands. The well is currently being side-tracked to
further evaluate the extent of these sands.
Marco
K2 Unit
Polo
APC WI: 42%
! We continue to analyze our options for enhanced oil recovery
(EOR) and anticipate making a recommendation to partners on the
optimum technique for the field by year end.
! Another down-dip well, GC 606 #1, is expected to commence
drilling following activities on GC 561 #2.
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5. First Quarter 2008 ANADARKO PETROLEUM CORPORATION
Gulf of Mexico
– PRODUCING PROPERTIES (CONT.) –
Independence Hub
! With 15 wells producing, the Anadarko-operated Independence Hub
exceeded expectations with gross production averaging 841 MMcf/d
(444 MMcf/d net to Anadarko) in the 1st Qtr.
Independence
! The Cheyenne #3 well (LL 399 #3, APC 100% WI) was drilled to a
Hub
total depth of 19,344 feet and completed in the 1st Qtr. The well is being
tied back to the Independence Hub facility and is expected to begin
producing in the 2nd Qtr.
! Since early April, production on the hub has been shut-in due to a leak
San Jacinto
in the third-party-owned export pipeline. Estimated repairs are
Spiderman
scheduled to be completed by mid-May, and we expect to ramp-up
production shortly thereafter.
Mondo NW Atlas NW
Q
Boomvang
Atlas
Merganser
East Breaks 643/642/688 (APC 30% WI) Vortex
East Breaks 598 (APC 100% WI)
Jubilee
East Breaks599 (APC 33% WI)
Cheyenne
st
! The East Breaks 688 #6 ST well was drilled and completed in the 1
Qtr, encountering pay sands in the BS-27 and BS-30 sand intervals.
The well is expected to be tied back to the Boomvang spar and begin
nd
production in the 2 Qtr.
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6. First Quarter 2008 ANADARKO PETROLEUM CORPORATION
Gulf of Mexico
– PRODUCING PROPERTIES (CONT.) –
Nansen Gunnison
East Breaks 558/602/646/689/690 (APC 50% WI) Garden Banks 667/668/669 (APC 50% WI)
! During the 1st Qtr, Anadarko drilled and began completion operations
! Four satellite wells at Northwest Nansen were hooked up to the
Nansen spar in the 4th Qtr of 2007 and began production in the 1st Qtr on a new development well, GB 677 #2, in the Gunnison field. The
of 2008. well encountered multiple pay horizons, and first production is
expected in the 2nd Qtr.
! A two-well recompletion program was initiated and is expected to be
nd
completed in the 2 Qtr. Conger
! A two-well satellite program to the southeast of the Nansen spar Garden Banks 215 (APC 25% WI)
began during the 1st Qtr. Both wells are planned to be tied back to the
Nansen spar and begin production in the 1st Qtr of 2009. ! Anadarko will participate in a recompletion operation on the Conger
#8 well beginning in the 2nd Qtr. Production is expected during the 3rd
Ticonderoga Qtr.
Green Canyon 768 (APC 50% WI) Red Hawk
! The connection of the GC 768 #3 and #1 ST 4 wells to the Garden Banks 877 (APC 50% WI)
Constitution spar (APC 100% WI) were completed, and the wells were
brought on line during the 1st Qtr. ! Recompletion operations on the GB 877 #1 ST 2 well began in the 1st
nd
Qtr and are expected to conclude in the 2 Qtr.
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7. First Quarter 2008 ANADARKO PETROLEUM CORPORATION
Gulf of Mexico
– MAJOR DEVELOPMENTS –
Power Play Blind Faith
Garden Banks 258/302 (APC 45% WI) Mississippi Canyon 695/696 (APC 25% WI)
! Platform modifications, flowline fabrication and installation ! The Blind Faith (Chevron-operated) semi-submersible production
continue to be on schedule for Anadarko's Power Play discovery. platform sailed from Ingleside, Texas, to its final location on
Mississippi Canyon 650 in the 1st Qtr. Mooring, platform and pipeline
Power Play will be a subsea tieback to the Baldpate facility and is
expected to be on line late in the 2nd Qtr. installation and commissioning continue for an expected start up in
the 2nd half of 2008. The facility is currently being upgraded to a
Caesar / Tonga Complex capacity rating of 70,000 BOEPD.
Green Canyon 683 (APC 20% WI)
Green Canyon 726/727/770 (APC 37.5% WI)
! Progress continues on development of the Caesar / Tonga complex.
Detailed reservoir simulation and subsea concept-validation work
st
occurred in the 1 Qtr. In addition, unitization discussions were
initiated with agreement that a phased development to the
Constitution spar (APC 100% WI) is the preferred option.
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8. First Quarter 2008 ANADARKO PETROLEUM CORPORATION
Gulf of Mexico
– EXPLORATION –
! Anadarko was the apparent high bidder on 20 deepwater tracts in the
Central and Eastern Gulf of Mexico Oil and Gas Lease Sales 206 and
224. Bidding alone and with partners, the company was successful on
20 total bids, representing an expenditure of $143 million net to
Anadarko. The bids are subject to approval by the U.S. Interior
Department's Minerals Management Service. The company's
winning bids were primarily focused on high-impact, drillable targets
in the Miocene fairway.
! The Green Bay prospect (Walker Ridge 372 #1), which spud in
December 2007, reached a total depth of 30,516 feet in March. The
LOUISIANA
well, which targeted the Lower Tertiary, has been plugged and TEXAS
New Orleans
abandoned. Anadarko was the operator with a 25% working interest,
with partners StatoilHydro (40% WI), Devon Energy (23.4% WI),
Blind Faith
ConocoPhillips (10% WI) and Nippon Oil Exploration U.S.A. (1.6%
WI).
Caesar
! Anadarko is currently drilling the Sturgis North #1 (Atwater Valley
138), which spud in early February with a middle Miocene target. The
well is drilling in 3,431 feet of water, with a proposed total depth of Sturgis North
31,500 feet. Anadarko and partners Chevron (operator), StatoilHydro
and Devon Energy each hold a 25% working interest in the well.
West Tonga APC acreage
Exploratory Drilling
Green Bay Major Developments
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9. First Quarter 2008 ANADARKO PETROLEUM CORPORATION
Rockies
Gross
Rig Activity Completed Wells
Net Volumes Capital
1Q08 1Q08
1Q08 1Q08
4Q07
Expl. Dev.
Oper. Non-Op.
$ MM
MMcf/d MBbls/d MMcf/d MBbls/d
TIGHT GAS
Natural Buttes 219 3 182 2 96 8 3 0 89
Wattenberg 165 17 172 16 69 6 1 0 111
Pinedale 69 1 77 1 28 0 23 0 33
Wamsutter 82 8 72 6 14 1 7 0 27
Other 84 5 102 3 18 1 3 0 19
CBM 348 0 300 1 50 7 14 0 239
EOR 3 11 4 12 32 1 0 0 2
970 45 909 41 307 24 51 0 520
TOTAL
Tight Gas
EOR CBM
– TIGHT GAS DEVELOPMENT –
Greater Natural Buttes
Powder River CBM
! The Greater Natural Buttes area continued to set production
records. A new gross single-day operated production record of 280
Pinedale Salt Creek MMcf/d was achieved during the quarter.
Wamsutter ! 52 operated wells were spud and 65 operated wells were completed
Moxa Monell
during the quarter.
Monell
Atlantic Rim
All 16 wells on the 10-acre White River pad have been drilled, with
!
completion activities ongoing. This innovative project was awarded
Greater
Wattenberg the Earth Day Award from the Utah Division of Oil, Gas and Mining
Natural Buttes
Helper
for Environmental and Technical Excellence.
! As a result of 10-acre potential and 20-acre performance, the team
increased total resource estimates for the field by 2.3 Tcfe to 9.2 Tcfe.
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10. First Quarter 2008 ANADARKO PETROLEUM CORPORATION
Rockies
Wattenberg
! Activity at the Wattenberg field in Colorado continued at a brisk pace, ! Anadarko and its JV partner Williams drilled a combined 109 wells in
the Powder River Basin during the 1st Qtr 2008. The company plans to
drilling 74 gross operated wells and performing a record 247 frac jobs
for the quarter. The six-rig program is expected to grow to eight by the drill or participate in more than 900 wells (530 operated) during 2008.
end of the summer.
! Performance from the Big George Coals continues to exceed
Pinedale expectations with indications of shorter dewatering time and earlier
first gas in the Anadarko-operated Powder Valley and Williams Draw
! Anadarko (10% WI) participated in drilling 67 non-operated wells units.
during the quarter.
! Ongoing field-compression expansion and midstream projects,
st
including the installation of the Big George Line and County Line
! In the 1 Qtr, Questar received regulatory approval for a 5-acre pilot.
amine treatment facilities, are expected to have a positive volume
In December 2007, Ultra's 5-acre pilot was also approved. This is
impact over the next several months.
expected to increase the overall field recovery and add to Anadarko's
proved reserve base.
! Anadarko drilled 30 of 160 planned 2008 wells in Atlantic Rim during
the 1st Qtr.
– COALBED METHANE DEVELOPMENT –
! Production from Anadarko's coalbed methane (CBM) assets – ENHANCED OIL RECOVERY –
continued to grow during the quarter. Powder River CBM continued
to set production records as total gross sales volumes for Anadarko- ! Total gross CO2 oil production exceeded 10,000 BOPD for a milestone
operated and non-operated interests topped 700 MMcf/d during the this quarter, with Salt Creek achieving a new daily production record
month of March. of 7,350 BOPD. Additionally, Salt Creek cumulative EOR production
surpassed 5 MMBO during the quarter.
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11. First Quarter 2008 ANADARKO PETROLEUM CORPORATION
Southern
Gross
Net Volumes Rig Activity Completed Wells
Capital
1Q08 1Q08 1Q08
1Q08
4Q07
$ MM Expl. Dev.
MMcf/d MBbls/d Oper. Non-Op
MMcf/d MBbls/d
101 26 7 3 1 5
Haley 0 104 0
40 3 1 0 0 14
Ozona 1 40 1
59 2 0 0 0 4
Mid-Continent 1 63 0
153 24 2 1 0 8
Bossier 0 158 0
81 50 6 0 0 30
Carthage 5 77 5
38 30 6 2 1 6
Chalk 12 50 13
92 54 3 1 0 14
S. Texas / Other 5 97 4
Tight Gas
564 189 25 7 2 81
TOTAL 24 589 23
Fractured Reservoirs
Other
Carthage
Marcellus
Shale
! Carthage continued an active drilling program with six rigs running
throughout the quarter. Rig efficiencies are being realized as the
Hugoton vertical drilling program saw an average decrease of four drilling
days per well within the quarter. The horizontal drilling program
continues to provide encouraging results with five wells drilled to
date.
Haley
Carthage
Freestone
Bossier East Chalk
Ozona
Maverick ! The Bossier asset has performed well in recent months – achieving
its highest gross operated production rate since 2005 at more than
260 MMcf/d. Based on recent success, the two-rig program will ramp
South Texas up to three rigs in the 2nd Qtr.
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12. First Quarter 2008 ANADARKO PETROLEUM CORPORATION
Southern
Haley / Delaware Basin Appalachian Basin
! Marcellus shale play leasing continued in the 1st Qtr in
! The Anadarko/Chesapeake partnership had 10 rigs running in the
Delaware Basin during the 1st Qtr, with six wells spud and six wells Pennsylvania. Current leasehold in the play is approximately
completed. 600,000 gross acres. The company anticipates drilling five to ten
wells in the play this year, the first of which is expected to spud
during the 2nd Qtr of 2008.
– EXPLORATION –
Maverick Basin
APC Leasing Activity
Industry Activity
! In early April, Anadarko entered into a joint exploration agreement
with TXCO Resources, Inc. on its 349,000-acre lease in the area. The
agreement allows for TXCO to earn up to a 50% working interest Appalachian Basin
based on a drill-to-earn arrangement beginning with four wells this
year followed by an option extension through 2013. TXCO has
farmed-in St. Mary Land and Exploration Company and both
intend to drill horizontal wells targeting the Pearsall and Eagleford
shale formations in the area.
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13. First Quarter 2008 ANADARKO PETROLEUM CORPORATION
International / Frontier
Net Volumes Capital
1Q08 4Q07 1Q08
$ MM
MBbls/d MBbls/d
22 31
Alaska 20
67 14
Algeria 51
– DEVELOPMENT – 16 16
China 17
0 72
Other 0
Alaska China 105 133
TOTAL 88
! Average gross oil production for the Colville River unit during the 1st ! During the quarter, oil production averaged 46 MBOPD (gross) and
the Bohai 8 Rig returned from dry dock to the CFD 11-6/12-1S field to
Qtr was approximately 110 MBOPD (gross). During the quarter,
continue development drilling.
several development wells were drilled in the Fiord area with one rig,
which will eventually mobilize to Qannik for additional development
Brazil
drilling for the remainder of 2008. In addition, construction continues
for various modules in connection with the Qannik development at
! During the quarter, Anadarko announced the sale of its 50% interest
CD2 with initial production from this reservoir anticipated to begin
in the Peregrino field to partner StatoilHydro. The transaction is
in late 2008.
expected to be completed in the 2nd half of 2008, pending government
! A second rig was brought into the Nanuq area at the end of the 1st Qtr approvals.
to drill and complete up to two development wells.
! Anadarko continues to progress field development through the
Integrated Project Team with StatoilHydro until the sale is closed.
Algeria
Ghana
! A milestone event was reached in March of this year with cumulative
gross production surpassing 1 billion barrels of oil.
! An integrated development team has been formed with the partners
and is working toward 2008 project sanction for the Jubilee field.
! During the quarter, oil production from the Hassi Berkine South and
the Ourhoud Central Processing Facilities was 443 MBOPD (gross).
! Inquiries are being made in the FPSO market, with several options
Several development wells were drilled during the period.
available for first production in 2010.
! The planned maintenance shutdown of Hassi Berkine South, which
was deferred from 4th Qtr 2007, began in late March and was completed ! The partnership has contracted for a drilling ship to arrive before the
end of 2008 to begin the development drilling program.
on schedule in mid-April. The facility is back on line.
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14. First Quarter 2008 ANADARKO PETROLEUM CORPORATION
International / Frontier
– EXPLORATION –
Alaska
! Drilling operations were completed at the Jacobs Ladder prospect on ! Anadarko is mobilizing a drillship with dynamic positioning from the
the Eastern North Slope of Alaska. The well was drilled to a total Gulf of Mexico to Brazil to execute its anticipated three-well drilling
depth of 14,416 feet. Following logging operations, no commercial program in 2008.
hydrocarbons were encountered and the well has been plugged.
Anadarko operates with a working interest in the prospect of 50%. Algeria
st
! During the quarter, Anadarko began drilling two wells – Gubik-3 and ! During the 1 Qtr, the ZEKE-1 exploration well was drilled in Block
Chandler-1 – in the Foothills area of Alaska's North Slope. The 403 c/e (APC 66% WI). The well did not encounter commercial oil
Gubik-3 encountered natural gas in two zones. Drilling on the quantities and was plugged and abandoned. An appraisal well of the
2007 ZENN-1 oil discovery is planned to spud in the 3rd Qtr.
Chandler-1 well has been suspended for re-entry next season. These
two wells are the first in a two to three year drilling program to
determine the prospectivity and potential commerciality of the area.
Anadarko is the operator with a 33.34% working interest in
approximately 1 million acres in the Foothills Partnership lands.
Brazil
! The Serpa subsalt prospect in Block 24 of the Espírito Santo Basin was
slated to reach a total depth of 19,500 feet. Total depth has not been
reached and the partnership is evaluating the potential to utilize a
different rig to complete drilling operations on the well. While the
primary objective has yet to be reached, the partners were encouraged
by evidence of an active petroleum system in the subsalt section
encountered in the well. Anadarko has a 30% working interest with
partners Petrobras (operator, 40% WI) and EnCanBrazil Ltda (30%
WI).
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15. International / Frontier
– EXPLORATION (CONT.) –
China
! During the 1st Qtr, Anadarko conducted G&G studies and interpreted ! Following completion of the Odum #1 well, the rig moved to the
Mahogany #2 appraisal well. The well, located in 3,540 feet of water
recently acquired 2D seismic data on deepwater Block 43/11 in the
on the West Cape Three Points Block offshore Ghana, encountered
South China Sea. 2D seismic acquisition has resumed and is expected
to be completed by the end of the 2nd Qtr. Preparations are under way high-quality stacked reservoir sandstones with approximately 165
to drill a planned 4,000-meter exploratory test during the 2nd half of feet of net oil-bearing pay. Moreover, the Mahogany-2 well is located
approximately seven miles to the northeast and up-dip from the
2008.
successful Hyedua-1 well on the Deepwater Tano license, indicating a
gross oil column of nearly 1,955 feet. We now plan to perform a
Ghana
drillstem test on the Mahogany-2 well to gain a better understanding
of the fluid and flow characteristics, which we anticipate will lead us to
! In the first quarter, our partnership announced a discovery at the
update our estimated resource range of the area.
Odum #1 well offshore Ghana in the West Cape Three Points block.
The well is located in 3,151 feet of water and approximately eight
miles from the Mahogany #1 discovery well. The Odum #1 well
confirmed a separate and potentially significant oil accumulation in
the area. We plan to shoot additional 3-D seismic to provide clearer
view of the size and expected impact of this project.
APC Acreage
Discoveries
Successful Appraisal
Drilling
Jubilee Field
Prospect
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