Monday, July 23, 2007

First Gas Production from Independence Hub in the Gulf

Anadarko Petroleum released to the press on Friday, July 20, 2007 that their Atwater Valley Producers Group that consists of Anadarko Petroleum, Devon Energy, Eni and Hydro, along with the owners of the Independence Hub, Enterprise Products Partners L.P. and Helix Energy Solutions Group reported that first natural gas production from the record-setting Independence Hub natural gas project has been achieved on schedule and within budget. The natural gas well located in 8,000 feet of water on Mississippi Canyon block 920, approximately 123 miles southeast of Biloxi, Miss., the Independence Hub is the deepest production platform ever installed and also is the world's largest offshore natural gas processing facility.

Anadarko Petroleum reported that natural gas production through the Independence natural gas Hub began on July 19, 2007, from the first of 15 sub-sea natural gas wells located in 10 anchor fields. The natural gas producers expect to ramp up production toward the Independence Hub's capacity of 1 billion cubic feet of natural gas per day (Bcf/d) by late 2007.

"The Independence project is a remarkable accomplishment by our industry," Anadarko Chairman, President and CEO Jim Hackett said. "It is a true testament to the collaboration of the partners and the ingenuity of the individuals who worked to deliver these once unreachable resources to American consumers. Together we achieved first production on time and within budget from a world-record-setting facility in an ultra-deep area of the Gulf where previously there was no infrastructure."

Anadarko Petroleum reported that first sales were received from the Atlas #1 well located on Lloyd Ridge block 50. The well is expected to ramp up to a rate of approximately 50 million standard cubic feet of gas per day (MMcf/d) over the next week. The block was awarded as a result of Lease Sale 181 in 2001, which opened a new area of the eastern Gulf of Mexico to exploration. Most of the additional 14 natural gas wells have been completed and flow-tested -- the majority of which demonstrated flow rates above 50 MMcf/d -- and will be brought on stream one at a time during 2007 for a total of 15 natural gas wells each producing 50 million standard cubic feet of gas per day.

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