1q15 opsreport draftv23filecache.investorroom.com/mr5ir_anadarko/697... · petroleum corporation,...

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INVESTOR RELATIONS

John Colglazier Senior Vice President 832/636-2306 Robin Fielder Director 832/636-1462 Jeremy Smith Director 832/636-1544

ANADARKO PETROLEUM CORPORATION

NYSE: APC | www.anadarko.com

1st Quarter 2015 Highlights .. …………………2 Overview……………………………………….3 U.S. Onshore Enhancements………………..4 Rockies .. ………………………………………5 Southern & Appalachia ………………………8 Gulf of Mexico .. ………………………………11 International & Frontier .. ……………………14 Deepwater Rig Schedule .. …………………17 Glossary of Abbreviations .. …………………18

First-Quarter 2015 OPERATIONS REPORT May 4, 2015

EAGLEFORD SHALE, TEXAS

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FIRST-QUARTER 2015 |OPERATIONS REPORT

FIRST-QUARTER 2015 HIGHLIGHTS

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation 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. While Anadarko believes that its expectations are based on reasonable assumptions as and when made, no assurance 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 presentation, including Anadarko’s ability to realize its expectations regarding performance in this challenging economic environment and meet financial and operating guidance, achieve its production targets, timely complete and commercially operate the projects and drilling prospects identified in this presentation, successfully plan, secure necessary government approvals, finance, build, and operate the necessary infrastructure and LNG park, and achieve its production and budget expectations on its mega projects. Other factors that could impact any forward-looking statements are described in “Risk Factors” in the company’s 2014 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other public filings and press releases. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements. Cautionary Note to Investors - The U.S. Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC’s definitions for such terms. We may use terms in this presentation, such as “net resource estimate,” and similar terms that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the oil and gas disclosures in our Form 10-K for the year ended December 31, 2014, File No. 001-08968, available from us at www.anadarko.com or by writing us at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380 Attn: Investor Relations. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

DELIVERING MORE FOR LESS Anadarko delivered record sales volumes of 83 million BOE during the 1st quarter of 2015, highlighted by year-over-year sales-volumes growth of more than 130,000 BOE/d.

The company also moderated its base production decline by minimizing downtime and continuing to optimize producing wells. The company reduced LOE per BOE by 17% over the 1st quarter of 2014 through continued optimization and working with service providers to further drive down costs.

EXCEEDING EXPECTATIONS IN THE U.S. ONSHORE The company achieved record sales volumes in the U.S. onshore during the quarter, averaging 717,000 BOE/d, an increase of approximately 115,000 BOE/d from the 1st quarter of 2014. Production in the Wattenberg field and Eagleford Shale drove U.S. onshore liquids growth, including a 50% year-over-year increase in oil volumes to approximately 168,000 BOPD in the 1st quarter.

The company also realized incremental cost savings since providing initial expectations in March and will continue to incorporate those into future forecasts and capital guidance as they are achieved.

ADVANCING DEEPWATER GULF OF MEXICO MEGA PROJECTS Anadarko continued to ramp up production at the Lucius spar toward its design capacity of 80,000 BOPD during the quarter.

Progress continued on the 80,000-BOPD Heidelberg spar, which is more than 85% complete. The hull is expected to sail to location in the 2nd quarter of this year and the project remains on schedule for first oil in mid-2016.

CONTINUING SUCCESSFUL EXPLORATION PROGRAM Subsequent to quarter end, the Yeti exploratory prospect in the Gulf of Mexico was announced as successful by the operator. Anadarko owns a 37.5% WI in the oil discovery located in Walker Ridge block 160.

ACTIVELY MANAGING THE PORTFOLIO Anadarko announced the divestment of its EOR assets in Wyoming during the 1st quarter, and closed the $700-plus million transaction subsequent to quarter end.

Note: All volumes discussed in this report exclude production associated with Pinedale/Jonah, China and EOR to provide a “divestiture-adjusted” sales comparison. “Divestiture-adjusted” sales volumes are intended to present performance of Anadarko’s continuing asset base, giving effect to recent divestitures.

Drillship, Offshore Colombia

Lucius facility online in the Gulf of Mexico

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OVERVIEW

SALES VOLUMES First-quarter sales volumes totaled 83 MMBOE, or 920,000 BOE/d, which was above the high end of guidance. These record volumes were driven by better than expected well performance, particularly in the Wattenberg field and Eagleford Shale. The company reported liquids sales volumes of approximately 464,000 Bbl/d, up nearly 12% from the 4th quarter of 2014.

Due to strong well performance, base production enhancements and reduced downtime achieved to date, Anadarko increased its full-year 2015 sales-volumes guidance to a range of 300 to 306 million BOE from the initial range of 295 to 301 million BOE.

CAPITAL Anadarko significantly improved its cost structure through continued operational efficiencies and savings achieved by working with service providers. First-quarter capital investments were below the low end of guidance at $1.67 billion, excluding capital investments associated with WES. As a result, the company reduced the upper end of its initial capital investment expectations for the full-year 2015 by $100 million.

CAPITAL INVESTMENTS

$MM

Rockies 656 Southern & Appalachia 521

Lower 48 1,177 Alaska 25

Gulf of Mexico 125

Total U.S. 1,327 International 243 Midstream** 201

Capitalized Items/Other 51

Total Company 1,822

1Q15

SALES VOLUMES

1Q15 1Q15 1Q15 1Q15 1Q14 1Q14 1Q14 1Q14

Oil MBOPD

NGLs MBbl/d

Gas MMcf/d

MMBOE

Oil MBOPD

NGLs MBbl/d

Gas MMcf/d

MMBOE

Rockies 107 76 1,274 36 66 45 1,216 28 Southern & Appalachia 61 54 1,243 29 46 47 1,180 26

Lower 48 168 130 2,517 65 112 92 2,396 54 Alaska 9 - - 1 9 - - 1

Gulf of Mexico 46 6 221 8 46 6 275 9

Total U.S. 223 136 2,738 74 167 98 2,671 64 International 98 7 - 9 78 - - 7

Same-Store Sales 321 143 2,738 83 245 98 2,671 71 Pinedale/Jonah, China & EOR* 14 - - 1 25 1 26 3

Total Company 335 143 2,738 84 270 99 2,697 74 *The Pinedale/Jonah divestiture closed in 1Q14, the China Subsidiary divestiture closed in 3Q14, and the EOR divestiture closed in 2Q15. ** Includes WES capital investments of ~$156 million

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U.S. ONSHORE EFFICIENCIES AND COST SAVINGS ENHANCE VALUE

Anadarko’s U.S. onshore assets continued to deliver strong results and the teams achieved additional cost savings, and enhanced efficiencies in the company’s primary operating areas.

The U.S. onshore achieved record sales volumes of nearly 65 MMBOE in the 1st quarter, adjusted for divestitures. The 59,000 BOE/d growth from the 4th quarter of 2014 was comprised of approximately 58% or 34,000 Bbl/d of higher-margin liquids, predominantly in the Wattenberg field and Eagleford Shale.

Anadarko leveraged its integrated midstream advantage to enhance base performance during the quarter by improving plant run times and lowering field system pressures. In the Wattenberg field, average line pressures were reduced by more than 20% during the quarter. U.S. Onshore LOE per BOE also improved by 14% over the 1st quarter of 2014 due to continued operational efficiencies and cost savings.

Additional well cost savings, drilling efficiencies and outstanding well performance improved economics during the quarter. The company continued to optimize its choke strategy and completion designs to improve well productivity. Recent Eagleford wells demonstrated a more than 70% increase of peak production rates due to completion design enhancements.

Anadarko operated an average of 29 rigs during the quarter, a decrease of eight rigs (22%) from the 4th quarter of 2014 and 23 rigs (44%) from the 1st quarter of 2014. The company also reduced completion activity to 12 crews from 17 in the 4th quarter of 2014. These actions demonstrate Anadarko’s commitment to preserving value by reducing capital expenditures on short-cycle activities in the current commodity-price environment.

Eagleford Well Outperformance

Ft. Lupton plant in Wattenberg

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ROCKIES

Anadarko’s Rockies assets delivered sales volumes averaging 395,000 BOE/d during the 1st quarter, a 26% increase over the same period in 2014, adjusted for divestitures. Oil volumes increased by 11% over the 4th quarter of 2014 and 62% versus the 1st quarter of 2014 on a divestiture-adjusted basis. Wattenberg liquids sales volumes grew more than 62,000 Bbl/d, or 77% year-over-year. Due to the commodity-price environment during the quarter, the company made the economic decision to reject ethane which equated to a net sales volumes reduction of 1.2 MMBOE. This was approximately 700 MBOE less than planned, largely attributable to periodic ethane recovery in Wattenberg.

The company averaged 11 operated rigs and drilled 106 wells in the 1st quarter. This was a 50% reduction from the 22 operated rigs in the 1st quarter of 2014 when Anadarko drilled 165 wells, indicating a more than 28% drilling-efficiency improvement in the region.

SALES VOLUMES

1Q15 1Q15 1Q15 1Q15 1Q14 1Q14 1Q14 1Q14

Oil MBOPD

NGLs MBbl/d

Gas MMcf/d

MBOE/d

Oil MBOPD

NGLs MBbl/d

Gas MMcf/d

MBOE/d

Wattenberg 97 46 431 215 58 23 290 129 Greater Natural Buttes 3 12 399 81 4 13 462 94

Powder River Basin 2 - 203 36 2 - 231 41 Wamsutter 2 4 93 21 1 5 107 24

Other 3 14 148 42 1 4 126 26

Same-Store Sales 107 76 1,274 395 66 45 1,216 314 Pinedale/Jonah & EOR* 14 - - 14 13 1 26 18

Total 121 76 1,274 409 79 46 1,242 332 *The Pinedale/Jonah divestiture closed in 1Q14 and the EOR divestiture closed in 2Q15.

CAPITAL INVESTMENTS

AVERAGE RIG ACTIVITY

1Q15 1Q15 4Q14

$MM Operated Operated

Wattenberg 574 10 12 Greater Natural Buttes 38 1 1

Powder River Basin 4 - - Wamsutter - - -

EOR 17 - - Other 23 - -

Total 656 11 13

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Wattenberg: The Wattenberg field net sales volumes increased

by 21,000 BOE/d or 11% from the 4th quarter of 2014 to an average of more than 215,000 BOE/d during the 1st quarter.

The company’s operated horizontal program averaged approximately 169,000 BOE/d, an increase of 15% from the 4th quarter of 2014.

Anadarko operated an average of 10 rigs and drilled 89 wells (130 type-well equivalents) during the quarter. The company continued to reduce drilling activity and exited the quarter with seven rigs.

Operated well costs in 2015 have decreased to less than $3.4 million from $4 million for a type-well equivalent in 2014, driven by continued operational efficiencies and supply-chain savings. A drilling record of $112 per foot was achieved during the quarter, a 25% improvement over the 1st quarter of 2014.

To maintain pace with production increases, Anadarko added 90 MMcf/d of field compression in the 1st quarter and plans to add an additional 90 MMcf/d during the remainder of the year.

Construction continued on phase II of the Lancaster cryogenic gas plant during the quarter, with the project approximately 90% complete at quarter end. The 300 MMcf/d expansion is on track for commissioning and start up by mid-2015.

During the quarter, Anadarko obtained a 20% equity ownership in Saddlehorn Pipeline Company LLC, which plans to construct, own and operate a 550-mile pipeline to transport crude from the DJ Basin to Cushing, Okla. The pipeline is expected to be operational in late-2016 and is targeting an initial capacity of 200,000 BOPD with plans to expand.

The company also elected to participate in the expansion of the existing White Cliffs Pipeline System. Three additional pump stations have been designed to increase the total capacity of the system from 152,000 BOPD to 208,000 BOPD, which is expected to be completed in the second half of 2015.

Construction is ongoing at the COSF, which has an estimated startup in the second half of 2015.

ROCKIES

Lancaster Plant tower raising, Colorado

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ROCKIES

EOR: During the 1st quarter, Anadarko announced the

divestment of its EOR assets in Wyoming for more than $700 million. The transaction closed subsequent to quarter end and was not included in the company’s initial sales-volume guidance.

Greater Natural Buttes: The company operated one rig in the 1st quarter and

drilled 17 wells. Net natural gas sales volumes averaged 399 MMcf/d day for the quarter, down 14% from the 1st quarter of 2014.

Laramie County, Wyoming: During the 1st quarter, Anadarko participated in five

wells in the emerging liquids-rich play. Results from the 22 producing wells remain strong with initial production rates averaging approximately 1,000 BOE/d.

This Niobrara and Codell opportunity resides within the company’s Land Grant position where Anadarko has minerals-interest ownership of more than 100,000 acres.

Powder River Oil: The company reached a farm-out agreement during

the 1st quarter, whereby Anadarko will be carried in at least three deep horizontal tests to further evaluate multiple oil objectives. The farm-in party has the option to earn 41,100 acres of Anadarko’s position. Anadarko has approximately 350,000 net acres in the Powder River Basin and is producing from more than 30 wells in this emerging play.

Powder River Basin, Wyoming

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SOUTHERN & APPALACHIA

During the 1st quarter, the Southern & Appalachia region delivered sales volumes of approximately 322,000 BOE/d, a 7% increase from the 4th quarter of 2014 and an 11% increase from the 1st quarter of 2014. Total liquids volumes increased approximately 24% from the 1st quarter of 2014, highlighted by an increase of nearly 20,000 Bbl/d in the Eagleford Shale. Due to the commodity-price environment during the quarter, the company made the economic decision to reject ethane which equated to a net sales volumes reduction of 400 MBOE. This was approximately 100 MBOE less than planned, largely attributable to periodic ethane recovery in the Eagle-ford.

The company averaged 19 operated rigs and spud 111 wells in the quarter. This was a 37% reduction from the 30 operated rigs in the 1st quarter of 2014.

SALES VOLUMES

1Q15 1Q15 1Q15 1Q15 1Q14 1Q14 1Q14 1Q14

Oil MBOPD

NGLs MBbl/d

Gas MMcf/d

MBOE/d

Oil MBOPD

NGLs MBbl/d

Gas MMcf/d

MBOE/d

Eagleford 36 24 163 88 23 18 112 60

Delaware Basin 14 4 47 26 12 5 44 24

E. Texas/N. Louisiana 3 17 248 61 3 17 238 59

Chalk/Eaglebine 7 2 19 12 6 3 23 13

Marcellus - - 595 99 - - 601 100

Bossier - - 71 12 - - 78 13

Hugoton - 2 34 8 - 2 36 8

Ozona - 2 21 6 - 2 23 6

Other 1 3 45 10 2 - 25 6

Total 61 54 1,243 322 46 47 1,180 289

CAPITAL INVESTMENTS

AVERAGE RIG ACTIVITY

1Q15 1Q15 4Q14

$MM Operated Operated

Eagleford 202 6 8

Delaware Basin 187 8 9

E. Texas/N. Louisiana 74 4 5

Chalk/Eaglebine 10 1 1

Marcellus 42 - 1

Bossier 2 - -

Hugoton - - -

Ozona - - -

Other 4 - -

Total 521 19 24

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Eagleford: The company exited the 1st quarter with an operated

gross processed sales-volume record of more than 275,000 BOE/d.

Anadarko’s net sales volumes averaged approximately 88,000 BOE/d during the quarter, a 48% increase from the 1st quarter of 2014. Total liquids sales volumes averaged more than 60,000 Bbl/d, a 49% year-over-year increase.

Anadarko spud 74 wells using six operated rigs in the 1st quarter.

The company continued its focus on efficiencies in the Eagleford, reducing drilling-cycle times to 6.9 days from 8.1 days in the 1st quarter of 2014. This reduced the cost per foot by 15% year over year to an all-time low of $85 per foot. Total well costs improved 14% to $4.4 million, down from $5.1 million in the 4th quarter of 2014.

Delaware Basin: Anadarko’s net sales volumes for the quarter

averaged approximately 26,000 BOE/d, roughly flat to the 4th quarter of 2014. Total liquids volumes averaged nearly 18,000 Bbl/d.

During the quarter, Anadarko announced that its successful delineation efforts in the Wolfcamp Shale established a net resource estimate of more than 1 billion BOE in the play, with more than 5,000 identified drilling locations.

The company spud 17 Wolfcamp Shale operated wells and brought 19 wells on line during the 1st quarter. Several of these new wells are further testing development options of the Wolfcamp A Bench, such as staggered targeting, well spacing and extended lateral lengths.

After entering 2015 with 10 rigs, the company reduced the rig count to six by quarter-end while continuing to apply Anadarko's proven integrated midstream model and expanding the infrastructure for full-scale development.

Oil capacity expansions totaling 30,000 BOPD were completed during the 1st quarter.

The Mi Vida cryogenic gas plant is expected to be operational during the 2nd quarter. Anadarko holds a 50% equity position in the plant, which is designed to add approximately 200 MMcf/d of additional gross processing capacity.


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East Texas/North Louisiana: Anadarko’s net sales volumes averaged more than

61,000 BOE/d during the 1st quarter, which were essentially flat to 2014. Total liquids sales volumes averaged approximately 20,000 Bbl/d.

Anadarko averaged four operated rigs and brought 12 wells on line in the quarter. The company continues to realize drilling cost-per-foot improvements, which have decreased nearly 6% since the 4th quarter of 2014 and more than 16% year over year.

Eaglebine: Sales volumes averaged more than 2,500 BOE/d in

the 1st quarter, an increase of 36% from the 1st

quarter of 2014.

Anadarko averaged one operated rig during the quarter. Capital expenditures continue to be funded by the $442 million carry as part of the previously announced JV.

Two of the oil play’s best wells to date came on line during the quarter and recorded 90-day IPs exceeding 500 BOPD.

Marcellus: The company released its one operated rig during

the quarter. Anadarko spud one well and participated in 11 non-operated wells during the 1st quarter.

More than 100 MMcf/d of additional compression was added during the 1st quarter to aid in the maintenance of base production.


Carthage, East Texas

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SALES VOLUMES*

1Q15

Oil MBOPD

1Q15

NGLs MBbl/d

1Q15

Gas MMcf/d

1Q15

MBOE/d

1Q14

Oil MBOPD

1Q14

NGLs MBbl/d

1Q14

Gas MMcf/d

1Q14

MBOE/d

Total 46 6 221 89 46 6 275 98 *Includes the impact of weather-related downtime.

GULF OF MEXICO

During the 1st quarter, Anadarko’s Gulf of Mexico region averaged sales volumes of more than 89,000 BOE/d, approximately 59% of which were high-margin liquids.

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DEVELOPMENT Lucius: KEATHLEY CANYON 874/875/918/919 (APC WI 23.8%) Anadarko brought Lucius on line during the 1st

quarter and completed the last of the six initial wells.

The company continued to ramp up production toward the spar’s 80,000 BOPD capacity during the quarter.

Anadarko continues to enhance value by leveraging its infrastructure in the deepwater Gulf of Mexico. At the end of the 1st quarter, outside-operated Hadrian South was brought on line through the Lucius facility, which is designed to handle 300 MMcf/d from the gas field via a PHA. Additional PHAs were reached during the quarter for future production handling of the third-party Buckskin and Moccasin discoveries.

Heidelberg: GREEN CANYON 859/860/903/904/948 (APC WI 31.5%) The company continued its development drilling

campaign during the quarter with two rigs in the field.

Fabrication of the main topsides module continued to progress and is currently more than 85% complete and ahead of schedule.

Installation operations for flow lines, export lines, and suction piles for the mooring system are now complete. The hull sail away is scheduled for the 2nd quarter and umbilical line installations are scheduled for the 3rd quarter of 2015.

First production remains on target for mid-2016.

Caesar/Tonga: GREEN CANYON 683/726/727/770 (APC WI 33.75%) Completion operations finished on the fifth Caesar/

Tonga well, which is being ramped up to a target production rate of more than 10,000 BOE/d.

A sixth infill well is scheduled to spud in the 2nd quarter.

K2 Complex: A sidetrack of the Green Canyon 562 #5 well is

currently being completed in a high-quality Miocene sand. First production is expected in mid-2015.

Constitution/Ticonderoga: The Blake 1007 platform rig completed sidetrack

operations on the A-4 well that is expected to begin production in the 3rd quarter of 2015.

Independence Hub: Gross production averaged 99 MMcf/d (84 MMcf/d

net) during the quarter.

GULF OF MEXICO

Heidelberg Main Topsides Construction

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GULF OF MEXICO

EXPLORATION/APPRAISAL

Yeti: WALKER RIDGE 117/157/158/159/160 (APC WI 37.5%)

During the quarter, the Yeti exploration prospect was successfully drilled and announced as a discovery in early April. The Yeti discovery well is located in approximately 5,900 feet of water, approximately 20 miles south of Anadarko’s operated Heidelberg field. The discovery well encountered oil pay, extending the prolific sub-salt Miocene play further south and west of the known fairway.

Subsequent to the original wellbore, the well was successfully sidetracked to test the down-dip limits of the field. The results are currently being evaluated to agree on future appraisal options.

Thorvald: MISSISSIPPI CANYON 814 (APC WI 50%)

The Thorvald exploration well was spud in the 1st quarter. The well is located in approximately 4,800 feet of water in a prolific Miocene sub-basin surrounded by multiple industry discoveries. The well is designed to test multiple sub-salt Miocene reservoirs in a three-way closure against salt with a TD of 30,500 feet.

Shenandoah: WALKER RIDGE 51/52/53 (APC WI 30%, OPERATOR)

Planning is under way for the third appraisal well, Shenandoah-4, which is anticipated to spud in the 2nd quarter. The well is designed to confirm the lateral sand quality, continuity and stratigraphy of reservoirs found in Shenandoah-2, which encountered more than 1,000 net feet of oil pay in excellent-quality Lower Tertiary-aged reservoirs. Shenandoah-4 is located approximately 800 feet updip and 0.7 miles northwest of Shenandoah-2.

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INTERNATIONAL & FRONTIER

During the 1st quarter, the International and Frontier region sales volumes averaged approximately 114,000 Bbl/d.

El Merk in Algeria

1Q15 MBOE/d

1Q14 MBOE/d

Alaska 9 9

Algeria* 77 60

Brazil - -

Ghana/W. Africa* 28 18

Mozambique - -

Other - -

Same-Store Sales 114 87

China** - 12

Total 114 99

SALES VOLUMES CAPITAL INVESTMENTS 1Q15

$MM

Alaska 25

Algeria 8

Brazil 1

Ghana/W. Africa 63

Mozambique 79

Other 92

Total 268

*Quarterly sales volumes are influenced by size, timing and scheduling of tanker liftings. **The China Subsidiary divestiture closed in 3Q14.

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DEVELOPMENT Alaska: Gross production from the Colville River Unit averaged approximately 47,000

BOPD during the quarter. Construction on the Alpine West satellite extension continues with drilling expected to commence in the 2nd quarter of 2015.

Algeria: During the quarter, Algeria gross production averaged approximately 365,000

BOE/d, as the El Merk facility continued to produce at plateau rates. Production rates were impacted during the quarter by severe weather that temporarily closed the Algerian ports in February.

In April, the HBNS centralized production facility was shut-in for three weeks for planned maintenance and has resumed production.

Ghana: Gross production at the Jubilee field averaged approximately 103,000 BOPD

during the quarter. Exported natural gas volumes continued to increase and averaged approximately 50 MMcf/d.

Construction on the TEN development was approximately 55% complete at the close of the quarter. The 80,000-BOPD project remains on schedule for first oil in mid-2016.

Mozambique: OFFSHORE AREA 1 (APC WI 26.5%, OPERATOR) Anadarko and its partners continue to make progress on the remaining

agreements and approvals that are required to support investment. There has been substantial engagement with the new administration, including the President, Prime Minister and key ministers.

The partnership has continued the evaluation of onshore LNG contractor bids during the quarter in preparation for contractor selection later this year.

The offshore exploration phase concluded during the 1st quarter of 2015. Anadarko drilled two maturation wells at the Golfinho discovery to advance the project toward development.

ONSHORE ROVUMA (APC WI 35.7%, OPERATOR) During the quarter, the company completed drilling and evaluation operations at

the Kifaru-1 well. The well did not encounter hydrocarbons and was plugged and abandoned. The partnership will evaluate the data collected in the two-well drilling program prior to deciding the next steps in the block.

LNG project development in Mozambique

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EXPLORATION/APPRAISAL Côte d’Ivoire: BLOCK CI-103 (APC WI 65%, OPERATOR) Planning is under way for a DST and interference

program as part of the continuing appraisal of the Paon discovery. The program will likely include additional appraisal drilling and will be carried out in the second half of 2015. The data from these operations is expected to provide insight on reservoir connectivity, deliverability, fluid properties and indicative data on reservoir size. Positive results will move us another step closer to FID.

BLOCK CI-528 (APC WI 90%, OPERATOR) Planning is currently under way to drill the first

prospect in CI-528 in 2016.

Colombia: FUERTE NORTE, FUERTE SUR, PURPLE ANGEL, COL 5 AND URA 4 (APC WI 50%, OPERATOR) The Bolette Dolphin arrived in Colombia during the

quarter and began exploration drilling operations on the Kronos-1 well. The Kronos prospect is located in the southern area of the block complex and is testing a large structure associated with the frontal area of an extensive thrust complex. The well is anticipated to reach total depth in the 2nd quarter.

Following completion of the Kronos-1 well the rig is scheduled to spud the Calasu-1 well. The Calasu prospect is a large four-way structure on the north end of the block complex. It has multiple potential targets. Success at either well would de-risk multiple identified prospects.


Colombia 1st Quarter 2015 Drilling Activity

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DEEPWATER RIG SCHEDULE

Bolette Dolphin Drillship Ocean BlackHornet Drillship

2015 2016 2017 2018 2019

Ensco 8506 Belford Dolphin

Noble Bob Douglas* Rowan Resolute* Bolette Dolphin*

Ocean BlackHawk* Ocean BlackHornet*

2020

*Rigs with two BOP stacks and 2.5 million pound hook loads

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GLOSSARY OF ABBREVIATIONS

APC: Anadarko Petroleum Corporation

Bbl/d: Barrels of Liquids per Day

BOE: Barrels of Oil Equivalent

BOE/d: Barrels of Oil Equivalent per Day

BOP: Blow Out Preventer

BOPD: Barrels of Oil per Day

COSF: Centralized Oil Stabilization Facility

DJ: Denver-Julesburg

DST: Drill Stem Test

EOR: Enhanced Oil Recovery

FID: Final Investment Decision

HBNS: Hassi Berkine Sud (South)

HZ: Horizontal

IP: Initial Production

JV: Joint Venture

Km: Kilometers

LOE: Lease Operating Expense

LNG: Liquefied Natural Gas

MBbl/d: Thousand Barrels per Day

MBOE: Thousand Barrels of Oil Equivalent

MBOE/d: Thousand Barrels of Oil Equivalent per Day

MBOPD: Thousand Barrels of Oil per Day

MM: Million

MMBOE: Million Barrels of Oil Equivalent

Mcf/d: Thousand Cubic Feet per Day

MMcf/d: Million Cubic Feet per Day

NGL: Natural Gas Liquid

PHA: Production Handling Agreement

TD: Total Depth

TEN: Tweneboa, Enyenra and Ntomme

WES: Western Gas Partners, LP (NYSE: WES)

WI: Working Interest

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