Anadarko: Buy, Hold or Sell?

Should you buy, sell or hold Anadarko Petroleum (APC) right now? The decision comes down to how you weigh Anadarko's huge discovery at its Shenandoah-2 well in the deep waters of the Gulf of Mexico against the company's potential liability in the $15 billion Tronox lawsuit.

The find at the Shenandoah-2 well in the Lower Tertiary trend of the Gulf of Mexico could produce more than 500 million barrels of crude, and it's part of a deep-water play that could hold up to 15 billion barrels of oil. Developing this find will be expensive. The Shendoah-2 well was drilled through almost six miles of rock in water a mile deep. A well under those conditions can easily cost $130 million. And because of the complicated geology of the area with a salt layer that makes seismic imaging essential but tough to interpret dry holes at $10 million apiece are likely to be relatively common....485 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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