4
Our operational focus is to progress our North Platte, Shenandoah and Anchor discoveries toward project sanction; continue
development drilling activities on the Heidelberg field with the aim to increase its oil and gas production over time; and selectively
conduct exploration drilling on our current U.S. Gulf of Mexico acreage. We are also seeking to renew our world-wide exploration
portfolio by pursuing new acreage opportunities in the U.S. Gulf of Mexico and evaluating certain other new venture opportunities. In
light of the current market environment and significant downturn in oil and gas prices, we are continuing our efforts to reduce our cost
structure company-wide which includes reducing or deferring certain activities.
SUMMARY OF PRIMARY ASSET BASE
Producing Properties
Operator
Initial
Exploration
Well Discovery
Date
Subsequent
Appraisal Well(s)
Project Sanction
First
Production
Near-Term Activity
Heidelberg (9.375% WI)
Anadarko
2009
One has been drilled: 2012
Mid-2013
January 2016
Connect the 3
rd
development well
that has been drilled and
completed to the production
facility; Drill, complete and
connect two additional
development wells
Properties in
Appraisal and
Development
Operator
Initial
Exploration
Well Discovery
Date
Subsequent Appraisal Well(s)
Near-Term Activity
Shenandoah (20% WI)
Anadarko
2009
Three have been drilled: 2013; early 2015; late 2015
Additional appraisal drilling; Pre-sanction engineering
studies
North Platte (60% WI)
Cobalt
2012
One has been drilled: 2015
Additional appraisal drilling and bypass coring
operations; Pre-sanction engineering studies
Anchor (20% WI)
Chevron
2015
One has been drilled: 2015
Additional appraisal drilling; Pre-sanction engineering
studies
Near-Term
Exploration
Prospects
Operator
Initial
Exploration
Well
Goodfellow
Cobalt
2016*
Anchor South
Cobalt
2017*
*
Cobalt estimate.
U.S. GULF OF MEXICO
Production and Development
Heidelberg.
The Heidelberg field is located approximately 160 miles south of the Louisiana coast in 5,300 feet of water and
covers Green Canyon Blocks 859, 903 and 904. The Heidelberg project was formally sanctioned in mid-2013. Anadarko Petroleum
Corporation (“Anadarko”), as operator, commenced initial oil and gas production from the Heidelberg field in January 2016. Initial
production at Heidelberg was achieved with two of the first three development wells tied back to a moored production handling
SPAR. The other completed development well is expected to begin production in the near future resulting in an initial total of three
producing wells. Two additional development wells are expected to be drilled, completed and brought onto production at Heidelberg
within the next year. Production from Heidelberg is transported to shore via dedicated oil and gas pipelines. Initial data from the first
producing wells at Heidelberg and from production tests on other Heidelberg development wells indicate that production rates from
Heidelberg may be materially lower than expectations. The Heidelberg field was discovered in early 2009, with the initial exploration
well encountering more than 200 feet of net pay thickness in Miocene horizons. This well was located in approximately 5,200 feet of
water in Green Canyon Block 859 within the Miocene trend and was drilled to a depth of approximately 30,000 feet. A subsequent
appraisal well was drilled in 2012 which encountered approximately 250 feet of net pay thickness in high-quality Miocene sands. As
of December 31, 2015, we had 5.6 million barrels (“MMBbls”) of oil, 0.3 MMBbls of natural gas liquids (“NGLs”) and 1.8 billion
cubic feet (“Bcf”) of gas of net proved undeveloped reserves attributed to the Heidelberg field. For more information regarding our
proved undeveloped reserves, please see “—Summary of Oil and Gas Reserves.” We own a 9.375% working interest in the
Heidelberg field.
