HOUSTON, Oct. 29 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced financial and operating results for the third quarter of 1998.

1998 Third Quarter

For 1998's third quarter, Anadarko reported a net loss available to common stockholders of $2.3 million or two cents per share. Revenues for the third quarter of 1998 totaled $140.2 million. For the same period in 1997, Anadarko reported net income of $17.1 million or 14 cents per share on revenues of $158.7 million. The decline in Anadarko's 1998 third quarter results from year-ago levels was attributed primarily to substantially lower commodity prices for crude oil, natural gas and natural gas liquids (NGLs), partially offset by increased production volumes. Costs and expenses were higher in the third quarter. Operating expense increased due to acquisition of domestic producing properties and first production from Algeria. Higher administrative and general expense, increased interest expense, and preferred stock dividends also affected the 1998 third quarter performance.

(...)

Eritrea

Anadarko also reported today that its first exploration well offshore Eritrea was unsuccessful. The Bulissar No. 1 well was drilled to a total depth of 4,200 meters on the Zula Block in the Red Sea. Anadarko, as operator of the concession, said that while the initial well was dry, the partners are encouraged by results of its drilling program. The well encountered source rocks at multiple levels, good seals, and reservoir quality sands. In addition, traces of oil were recovered from sidewall cores. These results add to the understanding of this unexplored portion of the Red Sea. The Bulissar No. 1 well represents only the fourth well drilled since World War II on the 9 million-acre concession area held by Anadarko and its partners.

Anadarko and its partners plan to drill two additional wells offshore Eritrea. The venture's second well, the Du Rig-Rig No. 1, will be located about 90 miles northwest of the Bulissar well; drilling operations are expected to begin in November 1998. Anadarko holds a 50% interest in the Eritrea concession. The remaining interests are held by AGIP with 30% and Burlington Resources with 20%.