Anadarko Apparent Winner on 13 Blocks in Gulf of Mexico Lease Sale 198

Anadarko Petroleum Corporation (NYSE:APC) today announced it was the apparent high bidder on 13 blocks in yesterday’s Central Gulf of Mexico Lease Sale 198, representing a total investment of about $20 million net to Anadarko.

A successful $34 million bid for Green Canyon (GC) 551 was made jointly, on a 50/50 basis, with Newfield Exploration Company (NYSE:NFX), while Anadarko individually placed apparent winning bids on another 12 blocks.

GC 551 was one of the most highly sought after blocks in the lease sale, attracting six bids totaling nearly $70 million from a combination of nine companies. The Lyell prospect identified on GC 551 is in close proximity to and targets the same Miocene pay zones found in Anadarko’s Knotty Head (25% working interest) discovery and the nearby Tahiti and Tonga fields.

In addition to the Lyell prospect, Anadarko picked up a lower tertiary lead called Fog Hat on Walker Ridge 414, and five wildcat prospects in a newly emerging play on the abyssal plain: the Antares prospect on Atwater Valley (AT) 890, 891 and 892; Sirius on AT 636, 637 and 681; Cygnus on AT 675 and 719; Aldebaran on GC 1009; and Rigel on Lund 47 and 48.

Not including these latest winning bids, Anadarko currently has access to 265 Gulf of Mexico deepwater blocks and is in the process of bringing several major discoveries on-line.

Anadarko Petroleum Corporation’s mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world’s health and welfare. As of year-end 2005, the company had 2.45 billion barrels-equivalent of proved reserves, making it one of the world’s largest independent exploration and production companies. Anadarko’s operational focus in North America extends from the deepwater Gulf of Mexico, up through the western U.S. and Canadian regions and onto the North Slope of Alaska. Anadarko’s international activities are focused on its major positions in North Africa, the Middle East, Indonesia and exploration or production operations in several other countries. For more information about how Anadarko is bringing excellence to the surface, please visit: www.anadarko.com.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release. See “Risk Factors” under Item 1a in the company’s Annual Report on Form 10-K and other public filings, press releases and discussions with company management. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.