HOUSTON (Legal Newsline) - Anadarko Petroleum Corp. misled investors about the value of one its oil fields, according to a class action lawsuit.
Anadarko discovered the Shenandoah field in the Gulf of Mexico in 2009, according to the Feb. 19 suit by the Georgia Firefighters' Pension Fund, on behalf of all investors, filed in U.S. District Court for the Southern District of Texas.
The company spent the next eight years appraising the field, the suit said.
“Defendants misrepresented and/or failed to disclose that the value of the Shenandoah assets and the success of the Shenandoah appraisal wells were overstated,” the suit alleges.
On May 2, 2017, Anadarko recorded a $467 million impairment charge and expensed $435 million in suspended exploratory well costs related to the Shenandoah field, the complaint says.
“Critically, the company admitted that it was suspending the appraisal process due to poor results,” the suit says.
Georgia Firefighters’ Pension Fund v. Andarko Petroleum Corp. U.S. District Court, Southern District of Texas. 4:20-cv-00576