Anadarko Increases Eagle Ford Reserves – Resource Estimate to 600 mmboe

Now Plans 4,000 Wells and is Drilling 6,600 ft Horizontal Laterals

Anadarko increased its resource estimate for its Eagle Ford Shale properties to 600 million barrels of oil equivalent (mmboe) at its analyst day. The company also reported having before tax rates of return of more than 100% at as little as $2 natural gas prices, as long as oil is $100 per bbl. The average well across the company’s acreage produces 65% liquids (40% oil & 25% NGLs).

Anadarko’s 2012 Drilling Plans

Anadarko plans to drill 250 wells with 10 operated rigs in 2012 and will increase to 275+ wells in 2013. ┬áThe company has also doubled the expected number of wells with 4,000 planned locations. Over the past couple of years, the company has made significant operational improvements. Rig spud to rig release has fallen from 18 to 12 days, while drilling costs have remained below $2 million per well. Anadarko can also complete an individual stage in less than 8 hours and has driven completion costs below $5 million. The average well drilled in 2012 will have a lateral length of more than 6,600 ft. That’s an increase of more than 2,000 ft per well over lateral lengths in 2009.

Anadarko’s Eagle Ford Type Well

A typical well in the Eagle Ford for Anadarko displays the following characteristics:

  • 450 mboe EUR
  • Almost 600 boe/d IP, with a little less than 350 boe/d at the end of year one
  • 40% Oil, 25% NGLs, 35% Natural Gas
  • $5.8 million well costs

Additional Processing Capacity Coming Online

The company will also have the Brasada Processing Plant (200 mmcf/d) online in 2013. the Brasada Plant will add more than 5,000 b/d of NGLs production in 2013. Current expectations are for net sales volumes that almost reach 50,000 boe/d by year- end 2013.

Read more at anadarko.com

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R.T. Dukes

R.T. Dukes

Managing Editor at EagleFordShale.com
R.T. is the managing editor of EagleFordShale.com. In prior roles, he advised major oil companies on strategy, the macro business environment, and opportunity screening. 2503 Robinhood, Houston, TX, 77005, U.S.A. | Telephone: 832.429.4790

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