Anadarko boosts Canadian capital budget 49%

Anadarko Petroleum Corp. has increased capital spending plans for its Canadian operations by 49% to $386 million (US) this year. James Emme, Anadarko Canada Corp. president, said the acquisition of the Berkley Petroleum Corp. assets provides excellent opportunities.

March 27, 2001

2 min read

By the OGJ Online Staff

HOUSTON, Mar. 27�Anadarko Petroleum Corp. has increased capital spending plans for its Canadian operations by 49% to $386 million (US) this year.

James Emme, Anadarko Canada Corp. president, said the acquisition of the Berkley Petroleum Corp. assets provides excellent opportunities in addition to existing prospects in British Columbia, Alberta, Saskatchewan, and the Northwest Territories.

Berkley Petroleum was acquired for $11.40/share (Can.) in cash for an equity value of $777 million (US) and assumed an estimated $250 million (US) of Berkley debt (OGJ Online, Feb. 13, 2001).

Anadarko originally set a $259 million budget for Canadian operations this year. The acquisition will increase capital spending by $127 million for the combined company, which includes $38 million of additional spending above Berkley's original 2001 plans.

Anadarko is the sixth most active driller in Canada and plans to increase its winter activity level from a peak rig count of 28 rigs working in 2001 to as many as 35 rigs in winter 2002.

In addition, Anadarko Canada expects to run 15 rigs this summer in Alberta, British Columbia, and Saskatchewan.

The Berkley acquisition increased Anadarko's Canadian reserves 42% to 312 million boe, of which 65% is gas. It also increased the company's acreage in Canada to 4.7 million acres from 3 million.