Societe Generale Reiterates Buy Rating, $95 PT on Anadarko Petroleum Corporation on Shenandoah Reservoir

In a report published Wednesday, Societe Generale analyst John Herrlin reiterated a Buy rating and $95.00 price target on Anadarko Petroleum Corporation APC. In the report, Herrlin noted, “APC announced, after the close, that it had encountered a higher quality than anticipated reservoir in the Lower Tertiary Age delineation well, Shenandoah #2 on Walker Ridge block 51 (30% WI and operator). The well TD-ed (reached total depth) @ 31,400' and is in 5,800' of water. It was 1,700' downdip from the #1 discovery well and didn't encounter any oil/water contact. No potential field volumes were discussed in terms of resource potential, but suffice it to say that it should be substantial (500M – 1Bboe), and they did use the phrase ‘potentially giant project'. What we found interesting was that the reservoir rock and fluid encountered were of much higher quality than those previously encountered by industry in the Lower Tertiary fields.” Anadarko Petroleum Corporation closed on Tuesday at $83.28.