Anadarko divesting US properties for $850 million and stake in Wyoming fields

Anadarko Petroleum Corp., Houston, agreed to divest certain US properties for $850 million in cash and interests in two oil and gas fields in Wyoming. The names of the buyers were not released.

Sept. 10, 2004

By OGJ editors
HOUSTON, Sept. 10 -- Anadarko Petroleum Corp., Houston, agreed to divest certain US properties for $850 million in cash and interests in two oil and gas fields in Wyoming. The names of the buyers were not released.

Terms of the transaction include 108 million boe in proved reserves as of yearend 2003, and current production of 38,000 boe/d in 180 fields across Texas, Oklahoma, Kansas, Wyoming, Utah, Louisiana, and Alabama.

The properties to be divested include about 30% of Anadarko's fields worldwide, but only 4% of the company's yearend 2003 reserves and 7% of its current production.

As part of the sale, Anadarko will receive cash, as well as the buyers's interests in Brown Cow and Hartzog Draw fields in Wyoming, representing 2 million boe of proved reserves and 7 million boe of probable reserves.

The divestures are part of Anadarko's previously announced plan to reduce its debt and buy back stock. Anadarko plans to sell properties representing 15% of its yearend 2003 proved reserves and 25% of its current oil and gas production, with after-tax proceeds expected to exceed $2.5 billion (OGJ Online, June 10, 2004).