Will Rogers said that when you find yourself in a hole, stop digging. That's often very sound advice, but the logic doesn't necessarily hold true in the oil and gas industry.
Last month, we noted Anadarko Petroleum's
The results of that "sidetrack" well, which reached roughly the same depth, were released yesterday, and they were absolutely stellar. The drill found roughly three times as much net oil pay, with an extra gas condensate trove to top it off. (Net pay speaks to reservoir thickness, and not barrels in place, but I would expect the three-to-one relationship to hold up in these circumstances). The initial well thus only hinted at the total prize in Keathley Canyon.
How much could Lucius be worth? Check out Mariner's trading yesterday for a hint. The company has a 16.67% stake in the property, and the shares were up 15.6% yesterday. That's $217 million of added share value. I take that as the market saying Lucius is worth $1.3 billion more than it was the day before.
Anadarko should be front and center on anyone's deepwater radar. Not only is the company hitting home runs here at home, but offshore Brazil and West Africa as well. Between Lucius and McMoRan Exploration's
