Bloomberg News

Anadarko, Partners Rise on Gulf of Mexico Oil Find: Dallas Mover

March 20, 2013

Anadarko Petroleum Corp. (APC:US) climbed the most in eight months after announcing a U.S. Gulf of Mexico oil discovery that may produce more than half a billion barrels of crude.

Anadarko rose 3.7 percent to $86.40 at the close in New York, the biggest increase since July 3. Andarko’s partners in the Shenandoah-2 deep-water well also gained, with Cobalt International Energy Inc. (CIE:US) climbing 8.1 percent, ConocoPhillips up 1.9 percent and Marathon Oil Corp. (MRO:US) up 1.9 percent.

The well, drilled to almost 6 miles (9.6 kilometers) beneath the seafloor in water 5,800 feet deep, encountered oil deposits more than 1,000 feet thick, The Woodlands, Texas-based Anadarko said in a statement yesterday.

“The size of the discovery could be one of the largest in the Gulf of Mexico,” Scott Hanold, a Minneapolis-based analyst for RBC Capital Markets LLC, wrote yesterday in a note to clients.

The field may produce 700 million barrels of oil, more than twice a previous estimate, said John Malone, a New York-based analyst for Global Hunter Securities LLC. Robert Morris, a New York-based analyst for Citigroup Inc., put the range at 500 million barrels to 1 billion.

The discovery adds $3 a share to Anadarko’s value, Brian Lively, an analyst for Tudor, Pickering, Holt & Co., wrote today in a note to clients. Lively, who rates Anadarko a buy, estimated about 750 million barrels may be recoverable from the deposit.

Anadarko operates the well and owns 30 percent. ConocoPhillips (COP:US) also owns 30 percent and Cobalt owns 20 percent. Marathon and closely held Venari Resources LLC each own 10 percent.

To contact the reporter on this story: Jim Polson in New York at

To contact the editor responsible for this story: Susan Warren at

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Companies Mentioned

  • APC
    (Anadarko Petroleum Corp)
    • $81.4 USD
    • 0.39
    • 0.48%
  • CIE
    (Cobalt International Energy Inc)
    • $8.73 USD
    • 0.03
    • 0.34%
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