Eritrea
Anadarko also reported today that its first exploration well offshore Eritrea was unsuccessful. The Bulissar No. 1 well was drilled to a total depth of 4,200 meters on the Zula Block in the Red Sea. Anadarko, as operator of the concession, said that while the initial well was dry, the partners are encouraged by results of its drilling program. The well encountered source rocks at multiple levels, good seals, and reservoir quality sands. In addition, traces of oil were recovered from sidewall cores. These results add to the understanding of this unexplored portion of the Red Sea. The Bulissar No. 1 well represents only the fourth well drilled since World War II on the 9 million-acre concession area held by Anadarko and its partners.
Anadarko and its partners plan to drill two additional wells offshore Eritrea. The venture's second well, the Du Rig-Rig No. 1, will be located about 90 miles northwest of the Bulissar well; drilling operations are expected to begin in November 1998. Anadarko holds a 50% interest in the Eritrea concession. The remaining interests are held by AGIP with 30% and Burlington Resources with 20%.
This press 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 assurances, however, can be given that its goals will be achieved. See Additional Factors Affecting Business in the Management's Discussion and Analysis (MD&A) included in the Company's 1997 Annual Report on Form 10-K.