SOURCE: Anadarko Petroleum Corporation

Anadarko Petroleum Corporation

March 12, 2012 16:15 ET

Anadarko Achieves First Oil at Its Gulf of Mexico Caesar/Tonga Development

HOUSTON, TX--(Marketwire - Mar 12, 2012) - Anadarko Petroleum Corporation (NYSE: APC), as operator, today announced first production at the Caesar/Tonga development in the Green Canyon area of the deepwater Gulf of Mexico. Production from Caesar/Tonga, with an estimated resource base of 200 to 400 million barrels of oil equivalent (BOE), is expected to ramp up to approximately 45,000 BOE per day from the first three subsea wells. A fourth development well is expected to be drilled and completed later this year, as part of the planned Phase I development.

"We are excited to announce we began producing high-quality oil from the Caesar/Tonga development on March 7, 2012; an outstanding accomplishment by our project team consisting of co-owners, our employees and contractors," said President and Chief Operating Officer Al Walker. "Our ability to safely achieve cost savings of almost $1 billion by leveraging our existing, operated infrastructure in the deepwater Gulf of Mexico continues to demonstrate the value of our hub-and-spoke approach to exploration and development. Caesar/Tonga is yet another capital-efficient, deepwater project in our Gulf of Mexico portfolio that we have successfully developed. This development and the Gulf of Mexico are an important part of Anadarko's liquids growth and our domestically produced energy."

In addition to utilizing Anadarko's 100-percent operated Constitution spar floating production facility, the Caesar/Tonga development also included the first application of steel lazy wave riser technology in the Gulf of Mexico. The Constitution spar is located in Green Canyon Block 680 in about 5,000 feet of water. It began production in 2006 with a capacity of 70,000 barrels of oil per day and 200 million cubic feet of natural gas per day. In 2009, Anadarko began making modifications to the topsides of the Constitution facility to accommodate production from the Caesar/Tonga area, approximately 10 miles to the east.

Anadarko operates the Caesar/Tonga development with a 33.75-percent working interest. Co-owners in the development include Statoil Gulf of Mexico LLC (23.55-percent working interest), Shell Offshore Inc. (22.45-percent working interest) and Chevron U.S.A. Inc. (20.25-percent working interest).

A map and images of the Caesar/Tonga development and Constitution spar will be available on the company's website under the Anadarko News tab at www.anadarko.com.

Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2011, the company had approximately 2.54 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko, please visit www.anadarko.com.

This news release 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 news release, including Anadarko's ability ramp production and commercially operate the drilling prospects and projects identified in this news release. See "Risk Factors" in the company's 2011 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.

Cautionary Note to U.S. Investors: Effective Jan. 1, 2010, the United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC's, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms. Anadarko uses certain terms in this news release, such as "estimated resource base," and similar terms that the SEC guidelines strictly prohibit Anadarko from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in Anadarko's Form 10-K for the year ended Dec. 31, 2011, File No. 001-08968, available from Anadarko at www.anadarko.com or by writing Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380, Attn: Investor Relations. This form may also be obtained by contacting the SEC at 1-800-SEC-0330.