GULF ACTION PACES ANADARKO BUDGET HIKE

May 9, 1994

Anadarko Petroleum Corp., Houston, has boosted its 1994 capital budget to $460 million from the $370 million planned earlier, largely on the strength of increased spending in the Gulf of Mexico. The company's revised budget calls for increased investments in offshore leases, exploratory drilling onshore and offshore in the U.S., and construction of platforms and other development facilities in the gulf.

Anadarko Petroleum Corp., Houston, has boosted its 1994 capital budget to $460 million from the $370 million planned earlier, largely on the strength of increased spending in the Gulf of Mexico.

The company's revised budget calls for increased investments in offshore leases, exploratory drilling onshore and offshore in the U.S., and construction of platforms and other development facilities in the gulf.

"These are exciting times for Anadarko...," said Robert J. Allison Jr., president, chairman, and chief executive officer. "Our continued success in exploration drilling warrants additional investments."

Anadarko said the increase in spending is due mainly to acquisition of gulf leases in the Minerals Management Service's Sale 147, conducted Mar. 30 in New Orleans. The company exposed $98.5 million as high bidder on 26 of the 31 blocks it sought (OGJ, Apr. 11, p. 36).

As of Apr. 28, MMS had awarded 17 of the blocks to Anadarko, and assuming its partners back in for interests in some blocks, the company's estimated net expenditure for offshore leases will be about $75 mithon this year.

Anadarko expects cash flow and existing available credit facilities to meet its capital and operating requirements in 1994.

Allison also said increased spending levels will generally match dollars received from the sale of noncore producing leases. To date, the company has received $55 million from the sale of leases in Canada, Arkansas, Louisiana, and eastern Oklahoma.

A package of Rocky Mountain leases will be offered for sale this year.