Anadarko, Shell announce new find in GOM

Anadarko Petroleum Corp. announced Monday it encountered more than 600 ft of high-quality oil pay, or the thickness of rock that can deliver oil or gas to the well, in subsalt Miocene sands, in the Shell-operated Vito appraisal well in the Gulf of Mexico.

Bob Daniels, senior vice president at Anadarko, said the find in the Vito appraisal well shows his company is "off to a great start" for its exploration activity in 2010. The Vito well was drilled to a depth of more than 31,000 ft in roughly 4,000 ft of water. An additional sidetrack appraisal well is planned for 2010 in order to determine the size of the find.

"With more than 1 mile separating the appraisal location and the discovery well, the initial results of the Vito appraisal well substantiate the field's large areal extent and thick, high-quality reservoirs," said Daniels.

The Gulf of Mexico is considered one of the most lucrative deep-water basins in the world. Offshore exploration in the United States is seen as a key to reducing foreign dependency on oil.

The Vito oil well is located in Mississippi Canyon block 940. Anadarko holds a 20% stake in the block. Shell Offshore Inc. holds a 55% interest while Statoil USA E&P Inc. holds the remaining 25% stake.