By OGJ editors
HOUSTON, Aug. 19 -- Anadarko Petroleum Corp. and Chevron Corp. have signed an agreement to jointly participate in drilling four deepwater Gulf of Mexico prospects. Chevron will operate all four wells.
Under the agreement, Anadarko will pay a disproportionate share of the drilling costs to earn a 20-25% working interest in two appraisal wells and two exploration wells slated for completion by midyear 2006. Anadarko also will gain rights in 29 deepwater gulf blocks.
Anadarko reported that the accord will bolster its position in the gulf's Miocene Foldbelt trend, which is "a key growth area" for the company and an area where it already has three discoveries under development.
The appraisal wells to be drilled are Tonga, on Green Canyon Block 727, and Sturgis, on Atwater Valley Block 138.
The two planned exploration wells to be drilled are Turtle Lake, on Grand Canyon Block 847, and Caterpillar, on Mississippi Canyon Block 782, which is near Chevron's Blind Faith discovery.
Chevron, which will use drilling rigs that are already under contract, expects to spud Caterpillar within the next 2 months.
In a separate transaction with another company, Anadarko gained a 15% working interest in Chevron's Big Foot prospect currently being drilled on Walker Ridge Block 29.
Anadarko has interests in 270 deepwater blocks in the Gulf of Mexico.
