worldwide explorationfilecache.investorroom.com/mr5ir_anadarko/668... · petroleum province similar...

Worldwide Exploration

Bob DanielsSenior Vice President, Worldwide Exploration

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PerformancePerformanceConsistent DeliveryConsistent DeliveryPredictive ResultsPredictive ResultsExtensive InventoryExtensive Inventory

AssetsAssetsGulf of MexicoGulf of MexicoWest AfricaWest AfricaMozambiqueMozambique

Creating ValueCreating ValueDevelopmentDevelopmentMonetizationMonetization

BrazilBrazilSoutheast AsiaSoutheast AsiaAlaskaAlaska

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Exploration Portfolio

Exploration StrategyExploration StrategyTarget Proven BasinsTarget Proven BasinsLeverage Skill Sets and ExpertiseLeverage Skill Sets and ExpertiseSeek Big ResourcesSeek Big Resources

Focused, High-Impact

ALASKAALASKAALASKA

U.S. ONSHOREU.S. ONSHOREU.S. ONSHORE

DEEPWATER GOMDEEPWATER GOMDEEPWATER GOM

BRAZILBRAZILBRAZIL

WEST AFRICAWEST AFRICAWEST AFRICA

MOZAMBIQUEMOZAMBIQUEMOZAMBIQUEINDONESIAINDONESIAINDONESIA

CHINACHINACHINA

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PRODUCING

GOM DISCOVERY

MONETIZED

INTERNATIONAL DISCOVERY

Deepwater Discoveries

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Not Just Discoveries: Significant Discoveries

APC in 8 of the 11 Discoveries Over 100 MMBOEAPC in 8 of the 11 Discoveries Over 100 MMBOE

Source: Wood Mackenzie Study

Discoveries Area Discovery Date

N. Thunder HorseN. Thunder Horse Mississippi CanyonMississippi Canyon 20002000

Blind FaithBlind Faith Mississippi CanyonMississippi Canyon 20012001K2 / K2 NorthK2 / K2 North Green CanyonGreen Canyon 20022002

ShenziShenzi / Genghis Khan/ Genghis Khan Green CanyonGreen Canyon 20022002TahitiTahiti Green CanyonGreen Canyon 20022002

Tubular BellsTubular Bells Mississippi CanyonMississippi Canyon 20032003

PumaPuma Green CanyonGreen Canyon 20042004

Knotty Head / PonyKnotty Head / Pony Green CanyonGreen Canyon 20052005Big FootBig Foot Walker RidgeWalker Ridge 20052005

Mission DeepMission Deep Green CanyonGreen Canyon 20062006Caesar/Tonga WestCaesar/Tonga West Green CanyonGreen Canyon 2006 / 072006 / 07

Central Subsalt Miocene Fields Since 2000Central Subsalt Miocene Fields Since 2000

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Gulf of Mexico Success

APC Deepwater Success Rate 2005 APC Deepwater Success Rate 2005 -- 2007: 51%2007: 51%

Reasons for APC SuccessReasons for APC SuccessProven Oil FindersProven Oil FindersCommitment to the ProgramCommitment to the ProgramIncreasingly Valuable Acreage PositionIncreasingly Valuable Acreage PositionDisciplined Risking MethodologyDisciplined Risking MethodologyRigs to ExecuteRigs to Execute

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SILVERADOSILVERADO

VITOVITO

Gulf of Mexico

2008 2008 -- 2009 Program2009 ProgramDrill 10 Drill 10 -- 15 Exploration / Appraisal Wells15 Exploration / Appraisal Wells100+ MMBOE Resource Targets100+ MMBOE Resource Targets

~150 Leads and Prospect Inventory~150 Leads and Prospect Inventory2.2 Million Net Acres2.2 Million Net Acres

Advancing Discoveries, Prospects and Leads

MIOCENE PROSPECTS LOWER TERTIARY PROSPECTSAPC ACREAGE MIOCENE LOWER TERTIARY

LYELLLYELL

TURTLE LAKETURTLE LAKEHEIDELBERGHEIDELBERG

STURGIS NORTHSTURGIS NORTH

2008 Program2008 Program2008 Program

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Caesar/Tonga Complex

Strategy at WorkStrategy at WorkRegional ExperienceRegional ExperienceCommercial PlanCommercial PlanRigsRigsInfrastructureInfrastructure

ResultResultSubstantial Discovery inSubstantial Discovery in Heart of Middle Miocene Heart of Middle Miocene Fairway (200 Fairway (200 -- 400 MMBOE)400 MMBOE)Multiple Exploration Multiple Exploration OpportunitiesOpportunities

Success Story

EXPECTED SUBSEA TIEBACK TO CONSTITUTION

APC ACREAGE

2008 EXPLORATION PLAN

ConstitutionConstitutionAPC WI 100%APC WI 100%

TICONDEROGA FIELD

APC WI 50%

TICONDEROGA FIELD

APC WI 50%

TONGA WEST DISCOVERYAPC WI 37.5%

TONGA WEST DISCOVERYAPC WI 37.5%

CAESAR DISCOVERYAPC WI 20%

CAESAR DISCOVERYAPC WI 20%

TAHITI FIELDAPC ORRI 3%+TAHITI FIELDAPC ORRI 3%+

LYELL PROSPECT APC WI 40%

LYELL PROSPECT APC WI 40%

HEIDELBERG PROSPECT APC WI 38%

HEIDELBERG PROSPECT APC WI 38%

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Knowledge Transfer

GOM DISCOVERY


2007 2008

Recent DiscoveriesRecent DiscoveriesRecent Discoveries

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West Africa Deepwater Exploration

Leverage Ghana DiscoveriesLeverage Ghana Discoveries2008 Program2008 Program

Drill Up to 9 Appraisal / Exploration Wells Drill Up to 9 Appraisal / Exploration Wells 150+ MMBOE Resource Targets150+ MMBOE Resource TargetsCapture Additional Blocks Along Cretaceous TrendCapture Additional Blocks Along Cretaceous Trend

Proven System with Great Upside

APC ACREAGE APC DISCOVERIES

Cretaceous Trend2 BBOE Discovered

Under-ExploredCretaceous Trend

8 BBOE Discovered

2008 DRILLING

Gross Acreage: 7.1 MillionGross Acreage: 7.1 Million

Tertiary Trend103 BBOE Discovered

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Ghana: World-Class Discoveries

2007 Ghana Discoveries2007 Ghana Discoveries2 Discoveries in 20072 Discoveries in 2007Resource Size: 200 Resource Size: 200 -- 1,000+ 1,000+ MMBOEMMBOE

2008 Activity2008 ActivityOdumOdum--1 Discovery Well1 Discovery WellDrill 5 Drill 5 -- 7 Appraisal / 7 Appraisal / Exploration WellsExploration WellsExpect Sanctioning Expect Sanctioning

Future ActivityFuture ActivityRig Contracted for Rig Contracted for 2009 2009 -- 2011 Program2011 ProgramFirst Production AnticipatedFirst Production Anticipated in 2010in 2010

Emerging Core Area

APC ACREAGE JUBILEE FIELD PROSPECTDISCOVERIES

10 miles HYEDUA-1HYEDUA-1

MAHOGANY-1MAHOGANY-1

ODUM-1ODUM-1

MAHOGANY-2MAHOGANY-2

DRILLING


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Mozambique

Exploration PositionExploration PositionUnderUnder--Explored Proven Explored Proven Petroleum ProvincePetroleum ProvinceSimilar Geological Setting to Similar Geological Setting to Gulf of Mexico and Niger DeltaGulf of Mexico and Niger DeltaOver 100 Leads on 2D SeismicOver 100 Leads on 2D Seismic3+ BBOE of Resource Potential3+ BBOE of Resource Potential

2008+ Activity2008+ ActivityAcquiring 3,000 kmAcquiring 3,000 km22 3D Seismic 3D Seismic Anticipate Drilling First WellAnticipate Drilling First Well in 2009in 2009

New Exploration Frontier with a Familiar Look

TANZANIA

TANZANIA

MOZAMBIQUE

MOZAMBIQUE

APC ACREAGE 2008 ACTIVITY

OFFSHORE AREA 1APC WI 66%

OFFSHORE AREA 1APC WI 66%

ONSHORE BLOCKAPC WI 42%

ONSHORE BLOCKAPC WI 42%

Mnazi BayGas Field

Mnazi BayGas Field


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Brazil: Subsalt Excitement

Exploration PositionExploration PositionMultiple Subsalt Targets Multiple Subsalt Targets Near Subsalt DiscoveriesNear Subsalt Discoveries150+ MMBOE Resource 150+ MMBOE Resource TargetsTargets

2008 Activity2008 ActivityDrill 4 Exploration Wells: Drill 4 Exploration Wells: Primary Focus on SubsaltPrimary Focus on SubsaltCurrently Drilling Serpa Currently Drilling Serpa Prospect Prospect Bringing Rig to AreaBringing Rig to Area

APC ACREAGE 2008 ACTIVITY

TupiTupi

Linguado ComplexLinguado Complex

Caxareu FieldCaxareu Field

JupiterJupiter

Espírito SantoBasin

Espírito SantoBasin

CamposBasin

CamposBasin

SantosBasin

SantosBasin

INDUSTRY SUBSALT DISCOVERIES

Gross Acreage: ~1.0 MillionGross Acreage: ~1.0 Million

SERPA PROSPECT

SERPA SERPA PROSPECTPROSPECT

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Southeast Asia: Emerging Deepwater

2008 Activity2008 ActivityDrill 3 Exploration WellsDrill 3 Exploration Wells150+ MMBOE Resource Targets150+ MMBOE Resource Targets

SOUTH CHINA SEASOUTH CHINA SEASOUTH CHINA SEA

BOHAI BAYBOHAI BAYBOHAI BAY

TARAKAN CORE AREATARAKAN CORE AREATARAKAN CORE AREA

ASTER DISCOVERYASTER DISCOVERY

East China Sea

Indian Ocean

South China Sea

Husky DiscoveryHusky Discovery

PROSPECTS

LW 21-1 LW 21-1

Gross Acreage: 17 MillionGross Acreage: 17 MillionAPC ACREAGE 2007 DISCOVERY 2008 ACTIVITY

LW 21LW 21--1 Well on Trend with 1 Well on Trend with 44--6 Tcf Husky Discovery6 Tcf Husky Discovery

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Alaska

Exposure to WorldExposure to World--Class ResourcesClass ResourcesAnchors, Satellites, Strategic GasAnchors, Satellites, Strategic GasEfficient Use of Exploration Capital Efficient Use of Exploration Capital with New Tax Lawswith New Tax Laws

Strategic Position in World-Class Basins

2008 ACTIVITYAPC ACREAGE

CHANDLERCHANDLER

2 - 10 Tcf Potential

GUBIKGUBIKUMIATUMIAT

JACOB’S LADDERJACOB’S LADDERSPARKSPARK

RENDEZVOUSRENDEZVOUS

Moose’s Tooth Alpine

Fiord

Nanuq

QannikAlpine West

SunriseLookout


NPRA

ALPINE GROSS PRODUCTIONALPINE GROSS PRODUCTION

00

1010

2020

3030

4040

5050

20002000 20012001 20022002 20032003 20042004 20052005 20062006 20072007

MM

BO

EM

MB

OE

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16

0

100

200

300

400

500

600

700

800

900

1000

2004 2005 2006 2007

MM

BO

E (C

umul

ativ

e)

2008

Consistent Exploration Track Record~1 BBOE Net Resources Discovered: 2004 - 2007

2007 Net Discovered ResourcesExpected: 197 MMBOEDelivered: 220 MMBOE

2007 Net Discovered ResourcesExpected: 197 MMBOEDelivered: 220 MMBOE

2008 Net Discovered ResourcesExpected: 210 MMBOE2008 Net Discovered ResourcesExpected: 210 MMBOE

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Exploration Value Creation

Capital-Intensive

Lower-Margin

Long-Dated

Shorter Cycle Time to First Production

Tieback to Existing InfrastructureHigh-Margin

Large Resources

INVENTORY – Extensive, High-ImpactINVENTORY – Extensive, High-Impact

EXPLOREEXPLORE

DISCOVERYDISCOVERY

SELL / TRADE DEVELOP

Proven Track Record

Proven Track Record

MONETIZEMONETIZE

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Exploration Capital SpentExploration Capital Spent ~ $3 B~ $3 BNet Resources DiscoveredNet Resources Discovered ~ 1 BBOE~ 1 BBOE

Monetized for ~$4.5 B Monetized for ~$4.5 B ~ 500 ~ 500 MMBOEMMBOEBookedBooked ~ 100 MMBOE~ 100 MMBOERemaining Unbooked Remaining Unbooked ~ 400 MMBOE~ 400 MMBOE

Remaining Unbooked ValueRemaining Unbooked Value

Extracting Value from Exploration

Exploration COF ~$3 / BOE

Exploration COF ~$3 / BOE

At $10 / BOEAt $10 / BOE $4 B$4 B

PRODUCING

GOM DISCOVERY

MONETIZED


2004 to Current

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Conclusion

Consistent, Successful Strategy and ExplorersConsistent, Successful Strategy and Explorers

Quality Exploration AssetsQuality Exploration Assets

Track Record will ContinueTrack Record will Continue

Significant Value Creation Significant Value Creation Now and in the FutureNow and in the Future

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