Each of our focus areas is discussed below by geographic region, followed by background
information regarding the geology, plans for appraisal and development, licenses and leaseholds,
drilling rigs and drilling results applicable to our geographic regions.
Project Appraisal and Development
U.S. Gulf of Mexico
We and our partners are moving forward on our Heidelberg, North Platte and Shenandoah
appraisal and development projects and evaluating our Anchor discovery as described below:
Heidelberg Project.
Our Heidelberg project was formally sanctioned in mid-2013, and Anadarko
Petroleum Corporation (‘‘Anadarko’’), as operator, currently estimates first production from Heidelberg
in the first half of 2016. On February 2, 2009, we announced that the Heidelberg #1 exploration well
had encountered more than 200 feet of net pay thickness in Miocene horizons. Located in
approximately 5,200 feet of water in Green Canyon Block 859 within the Miocene trend, this well was
drilled to approximately 30,000 feet. An appraisal well was spud on the Heidelberg field in late 2011 in
Green Canyon Block 903. On February 16, 2012, Anadarko announced the successful results of the
appraisal well, which encountered approximately 250 feet of net pay thickness in high-quality Miocene
sands. The appraisal well was drilled to a total depth of 31,030 feet in approximately 5,000 feet of
water, about 1.5 miles south and 550 feet structurally up-dip from the Heidelberg #1 exploration well.
Log and pressure data from the Heidelberg #1 exploration well and the Heidelberg appraisal well
indicate excellent quality, continuous and pressure-connected reservoirs with high-quality oil. On
April 19, 2012, Anadarko announced that a sidetrack well performed on the Heidelberg appraisal well
successfully confirmed an extension of the Heidelberg field of up to 1,500 acres by encountering an oil/
water contact that was approximately 700 feet down structure.
The Heidelberg production facility is designed to produce up to 80,000 barrels of oil per day
(‘‘BOPD’’) and 80 million cubic feet per day (‘‘MMCFD’’) of gas. Anadarko, as operator, drilled the
first field development well in 2014 and two additional development wells have recently reached total
depth. Development drilling continues and is on schedule, with two drilling rigs currently operating in
the field. The hull has arrived in the U.S. Gulf of Mexico, and the topsides are more than 70%
complete. The subsea infrastructure remains on schedule to be fabricated and installed on time to
support initial production in 2016. As of December 31, 2014, we had 8.4 million barrels (‘‘MMBbls’’) of
oil and 3.7 billion cubic feet (‘‘Bcf’’) of gas of net proved undeveloped reserves attributed to the
Heidelberg project. 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 project.
North Platte Project.
On December 5, 2012, we announced a significant oil discovery at our North
Platte prospect on Garden Banks Block 959 in the deepwater U.S. Gulf of Mexico. The North
Platte #1 exploration well represents the first discovery in our deepwater U.S. Gulf of Mexico Alliance
with TOTAL E&P USA INC. (‘‘Total’’). Based on extensive wireline evaluation, the discovery well
encountered over 550 net feet of oil pay in multiple high-quality Inboard Lower Tertiary reservoirs. The
North Platte oil discovery is particularly important because it provides evidence to support our geologic
model of the Inboard Lower Tertiary trend where we hold a substantial acreage position with several
potential follow-on exploration prospects, such as South Platte, Baffin Bay, Fraser, and Williams Fork.
We conducted bypass coring on the North Platte #1 exploration well, which provided additional
information we will use as we continue our evaluation of the North Platte oil discovery and plans for
appraisal and development. The North Platte #1 exploration well is located in approximately 4,400 feet
of water and was drilled to a total depth of approximately 34,500 feet.
In early 2015, we took delivery of the Rowan Reliance, a new-build, ultra-deepwater dynamically
positioned drillship, which we plan to use for our operated U.S. Gulf of Mexico drilling campaign. We
spud the North Platte #2 appraisal well with the Rowan Reliance in early February 2015. The results
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