Monell Unit CO 2 Flood - PDF Free Download

Monell Unit CO 2 Flood Patrick Draw Field Sweetwater County, Wyoming May 29 th, 2008 Prepared by: Jason Gaines Senior Reservoir Engineer

APC Forward Looking Statement 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. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, 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. Anadarko cannot guarantee that it will successfully execute on its exploration, drilling and a development plans. See Risk Factors in the company s s 2007 Annual Report on Form 10-K K and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.

Anadarko s Wyoming EOR Assets Fields Monell Salt Creek Sussex Land Grant Gas Fields Oil Fields Third Party CO 2 Pipeline APC CO 2 Pipeline Sussex Pipelines 33 mile, 8 125 mile, 16 16 Salt Creek CO 2 Supply XOM Shute Creek 8 Monell

Monell Overview General Facts & History Discovered in 1959 ~115 MMBOOIP (prod 40 MMBO) 2001: Initiated pilot 2003: 33 mile PL & 1 st CO 2 injection 2006: Ph2 start-up 2007: NGL plant commissioned 2008: 9-spot drlg program ( 9 wells ) 2009: Ph3 development 28 27 33 34 4 3 Active WS 26 25 35 36 Future 2 1 WS 30 31 6 Planned sequestration of 85 Bcf CO 2 Current Status 3,000 BOPD 48 MMCFD CO 2 injection 39 CO 2 injectors CO 2 -EOR cumulative of 3 MMBO 9 16 10 11 12 WS Ph3 14 15 13 7 18 0 2,963 FEET

Upper Cretacous Stratigraphy Lance Formation Fox Hills Sandstone Upper Cretaceous Lewis Shale Almond Formation Ericson Sandstone Rock Springs Fm Blair Fm Mesaverde Group

West-East Cross Section Patrick Draw Field Table Rock ft 2000 Normal Fault Lance Lewis Almond Fort Union Wasatch 0 1 2 mi Sea Level

Monell Unit Upper Almond Reservoir Monell Unit Type Log MONELL UNIT 49 SN 0 100 ILD MNOR 0 100 0 40 SPNORM CILD MINV -90 10 500 0 0 40 Lewis Shale UA-5A Pay 4500 UA-5B Pay Lower Almond 4550

Reservoir Highlights Cretaceous Mesaverde Almond SS stratigraphic trap Barrier island/tidal channel inlet/shoreface depositional system Very fine to fine-grained lithic, illitic, kaolinitic, and quartzose sandstones 20% Porosity, 30md Permeability, 40% S wi 5 deg. dip, 25 Net Pay, 5,000 Acres at 4,500 depth Fractures and faulting are minor Oil zone confined up-dip by the depleted low pressure gas cap and down-dip by permeability pinchout ~115 MMSTB OOIP, 500 GOR, 43 deg. API sweet 20% Primary RF, 14% Waterflood RF 1,800 psi original reservoir pressure at 120 deg.f CO 2 Miscible with Oil (1450# MMP)

Monell Unit Phase Development Phase 1 Phase 2

Development Highlights Phase 1 implemented adding first 28 patterns of development Water curtain concept proven up as affective pressure barrier Horizontal 1: MU 43-27H - 5,000 lateral water injection well Horizontal 2: MU 44-27H - 6,800 lateral water injection well Four vertical water injection wells to the north Flood response seen within 3 months of initial injection Phase 2 implementation added 12 patterns of development Applied lessons learned from Phase 1 to Phase 2 Drilling, Completions, Facilities NGL plant installed and processing recycled CO 2 to recover NGL s Monitor/idle wellbores converted to producers to test 9-spot concept Drilling campaign under way to test 9-spot pattern performance Future phase development planning currently under way

Operations Highlights Drilling Currently drilling with coiled tubing drill rig Completions 50/50 lease crude and diesel frac fluid Wellbores Injectors: 5-1/2 casing; 2-3/8 IC tubing; Ni coated packer; inconell tubing hanger Producers: Pumping: 5-1/2 csg; 2-7/8 CS tubing; continuous sucker rod; 456 PU Flowing: 5-1/2 csg; 2-3/8 IC tubing; Ni coated packer; inconell tubing hanger; H20 slip-stream line at wellhead Flowlines Injection/Production: Continuous HDPE Headers Latest design (A2) includes central injection/production manifolds in common facility

Operations Highlights

Monell Unit Performance

PATRICK DRAW FIELD, MONELL UNIT CO2 FLOOD PROJECT PERFORMANCE 100000 10000 1000 100 10 1 Sep-59 Sep-61 Sep-63 Sep-65 Sep-67 Sep-69 Sep-71 Sep-73 Sep-75 Sep-77 Sep-79 Sep-81 Sep-83 Sep-85 Sep-87 Sep-89 Sep-91 Sep-93 Sep-95 Sep-97 Sep-99 Sep-01 Sep-03 Sep-05 Sep-07 Sep-09 Sep-11 Sep-13 Sep-15 BPD, MCFD Sep-17 Monell Unit Production History Primary Secondary Tertiary CO2 Flood Oil Gas CO2 Inj

Monell Unit Performance 100,000 48 MMcfdi 10,000 Pilot 2001-02 1 st CO 2 Inj Sept.03 3,000 bopd BPD, MCFD 1,000 100 Oil Production History 10 CO2 Inj History 1 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09

Monell Unit 9-Spot Type Well 250 Monell 9-Spot Review Oil Production BOPD 200 150 100 50 #6Well #7 Well #14 Well #17 Well #18 Well #121Well #157Well Type Well 0 1 135 269 403 537 671 805 939 1073 1207 1341 1475 1609 1743 Normalized Time (days)

Monell Unit 9-Spot Drilling - 2008

Monell Unit Future Development 28 27 26 Ph1 25 30 33 34 Active 35 36 31 4 Ph2 3 WS 2 Future 1 6 WS 9 10 11 12 WS Ph3 7 16 15 14 13 18 0 2,963 FEET

Monell Unit Applied Tools Field/Pattern surveillance (OFM) Dimensionless curves developed to help forecast performance Allows pattern comparison and balancing Will help identify problem patterns Bottom Hole Pressure Tool Surface Injection Pressure Calculates BHIP from SIP using phase envelope P & T segments Assures that we remain below fracture pressure at all times CO 2 Injection Schedule Developed to aid in balancing patterns and CO 2 utilization Automated system that can be controlled by volume and/or pressure Production Allocation Tool Ensure that production is allocated correctly from well test data Reservoir Simulation History Matching

Monell Unit Applied Tools Recovery Factor RF_for_PI_II PATTERN: Phase 1&2 Patt_11-35 PATTERN: Phase 1&2 Patt_13-25 PATTERN: Phase 1&2 Patt_13-35 PATTERN: Phase 1&2 Patt_15-25 PATTERN: Phase 1&2 Patt_22-2 PATTERN: Phase 1&2 Patt_22-25 PATTERN: Phase 1&2 Patt_22-26 PATTERN: Phase 1&2 Patt_22-3 PATTERN: Phase 1&2 Patt_22-35 PATTERN: Phase 1&2 Patt_22-36 PATTERN: Phase 1&2 Patt_24-25 PATTERN: Phase 1&2 Patt_24-26 PATTERN: Phase 1&2 Patt_24-3 PATTERN: Phase 1&2 Patt_24-35 PATTERN: Phase 1&2 Patt_31-3 PATTERN: Phase 1&2 Patt_31-35 PATTERN: Phase 1&2 Patt_33-25 PATTERN: Phase 1&2 Patt_33-26 PATTERN: Phase 1&2 Patt_33-3 PATTERN: Phase 1&2 Patt_33-34 PATTERN: Phase 1&2 Patt_33-35 PATTERN: Phase 1&2 Patt_35-25 PATTERN: Phase 1&2 Patt_35-3 PATTERN: Phase 1&2 Patt_35-35 PATTERN: Phase 1&2 Patt_42-25 PATTERN: Phase 1&2 Patt_42-26 PATTERN: Phase 1&2 Patt_42-3 PATTERN: Phase 1&2 Patt_42-34 PATTERN: Phase 1&2 Patt_42-35 PATTERN: Phase 1&2 Patt_44-25 PATTERN: Phase 1&2 Patt_44-26 PATTERN: Phase 1&2 Patt_44-3 PATTERN: Phase 1&2 Patt_44-34 PATTERN: Phase 1&2 Patt_44-35 PATTERN: Phase 1&2 Patt_51-3 PATTERN: Phase 1&2 Patt_53-25 PATTERN: Phase 1&2 Patt_53-27 PATTERN: Phase 1&2 Patt_53-3 PATTERN: Phase 1&2 Patt_53-35 10 5 10 4 10 3 10 2 10 1 10 0 10-1 10-2 10-3 Anadarko Petroleum Company PATTERN: Patt_24-26 Patt_24-26 Daily Oil Rate ( bbl/d ) Daily Gas Rate ( Mcf/d ) Daily Water Rate ( bbl/d ) Daily CO2 Volume ( Mcf ) PDB Daily Prd CO2 Volume ( Mcf/d ) RatioGORCO2d ( Mcf/bbl ) HCPVinj 10-4 2003 04 05 06 07 08 Date

Monell Unit Applied Tools 10000 5000 Anadarko Petroleum Corporation MONELL UN 31-35 Well Name: Monell Unit 31-35 Well Depth SIP SIT 4,597 750 75 Tgrad 0.00 F/ft Monell Unit 31-35 1000 500 100 50 Depth Temp Davg Depth Pressure Bottom Hole Pressure 0 75 0 0 750 460 Monell Unit 31-35 75 229.85 460 780 919 75 689.55 919 813 1379 75 1149.25 1,379 850 1839 75 1608.95 1,839 950 2299 75 2068.65 2,299 1,102 2758 75 2528.35 2,758 1,262 3218 75 2988.05 3,218 1,425 3678 75 3447.75 3,678 1,593 4137 75 3907.45 4,137 1,763 4597 75 4367.15 4,597 1,933 5057 4826.85 0.42 psi/ft 0 500 1,000 1,500 2,000 2,500 0 500 1,000 1,500 2,000 2,500 3,000 Well Name: Monell Unit 31-35 Monell Unit 31-35 3,500 Well Depth 10 SIP SIT 4,597 1,698 75 Tgrad 5 0.00 F/ft 4,000 4,500 1,933 Rate 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Depth Temp Davg Depth Pressure Bottom Hole Pressure 0 75 0 0 1,698 460 Monell Unit 31-35 75 229.85 460 1,870 919 75 689.55 919 2,044 1379 75 1149.25 1,379 2,220 1839 1 75 1608.95 1,839 2,399 2299 75 2068.65 2,299 2,579 2758 75 2528.35 2,758 2,761 0.5 3218 75 2988.05 3,218 2,945 3678 75 3447.75 3,678 3,130 4137 75 3907.45 4,137 3,316 4597 75 4367.15 4,597 3,503 5057 4826.85 0.76 psi/ft 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 0 0.1 MONELL UN 31-35 Daily Inj Water Volume ( bbl ) Daily CO2 Volume ( Mcf ) 2003 04 Rate 05 1,749 mcfd 06 07 08 3,503 Date Date Stamp 02.04.08 5,000 Date Stamp

Monell Unit CO2 In Action PATRICK DRAW FIELD, MONELL UNIT CO2 FLOOD PROJECT PERFORMANCE 100000 10000 1000 100 10 1 Sep-59 Sep-61 Sep-63 Sep-65 Sep-67 Sep-69 Sep-71 Sep-73 Sep-75 Sep-77 Sep-79 Sep-81 Sep-83 Sep-85 Sep-87 Sep-89 Sep-91 Sep-93 Sep-95 Sep-97 Sep-99 Sep-01 Sep-03 Sep-05 Sep-07 Sep-09 Sep-11 Sep-13 Sep-15 BPD, MCFD Sep-17 Primary Secondary Tertiary CO2 Flood Oil Gas CO2 Inj

Salt Creek Overview General Facts & History Discovered in late 1800 s ~1.7 Bbbl OOIP (0.7 Bbbl cum prod) 9 productive intervals & 4,400 total wells 2003: Completed pilot, Ph1 & 125 mile PL 2004: 1 st CO 2 injection 2005: Ph2 start-up 2007: Ph3-4 start-up 2008: 2Q Ph5 start-up Flowing producers identical inj/prod set-up Planned sequestration of 660 Bcf CO 2 Current Status 7,000 BOPD from CO 2 ( 8,500 BOPD total ) 320 MMCFD CO 2 injection 153 CO 2 WAG injectors ( 20-acre 5-spots ) CO 2 -EOR cumulative of 5.5 MMBO 7 8 9 10 11 12 15 14 22 23 24 30 26 25 27 34 3 12 10 11 13 15 14 SALT CREEK SOUTH UNIT 23 24 22 2 Ph1-2 Future Development 18 17 16 13 Ph3-4 Town of Midwest 1 6 SALT CREEK LIGHT OIL UNIT 19 Ph5 20 21 28 29 32 33 31 36 35 Ph6 Ph7 5 4 9 7 8 17 16 18 20 21 19 Scale = 1 mile 27 26 25 30 29 28

Phase 1-4 CO 2 Flood Performance Salt Creek Phases 1-4 CO2 Flood Performance 9,000 8,000 Oil Production CO2 Injection 360 320 Gross Oil Production (BOPD) 7,000 6,000 5,000 4,000 3,000 280 240 200 160 120 Total CO2 Injection (MMCFD) 2,000 80 1,000 40 0 0 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08

Anadarko s Rockies EOR Current Activity Monell Unit 3,000 BOPD 50% Developed (based on area) Improved sweep via 9-spot pilot Five years of continuous injection without major breakthrough Salt Creek 7,000 BOPD 20% Developed (based on area) Unique CO2 flood pushing technological envelope Phase development allows flexibility to apply lessons learned Future Development 1) Significant undeveloped resources at Monell and Salt Creek 2) Linch Fields ~ 15 miles north of Salt Creek 3) Apply lessons learned to future developments

Discussion?