Anadarko Eagle Ford Production Sets New Record in Q4 2013

February 12, 2014 Kirk Eggleston

Anadarko Eagle Ford production had a record setting fourth-quarter in 2013, with a net sales volume of 53,000 boe/d. That's up from the company's third-quarter 2013 results by ~6% and up 36% from fourth-quarter 2012 net sales of ~39,000 boe/d.

Anadarko has become accustom to setting company records in the prolific Eagle Ford. In the third-quarter of 2013, Anadarko hit 50,000 boe/d, which set a new record. Fourth-quarter 2013 results simply established a new high water mark for the company in the play.

Anadarko Eagle Ford Drilling Becoming More Efficient

In the Eagle Ford, Anadarko reduced spud-to-rig-release times to 8.5 days in 2013 as opposed to 10.5 days in 2012. During the fourth-quarter of 2013, the company spud 88 wells, and added an additional rig for an average of 10 rigs in the Eagle Ford.

Since drilling began in the play, Anadarko has drilled more than 1,000 Eagle Ford wells and recently achieved gross production of 165,000 boe/d.

Eagle Ford Contribution to Total Anadarko Production in Fourth-Quarter 2013

[ic-l]In the fourth quarter of 2013, Anadarko's Eagle Ford production 36,000 b/d of liquids production. As previously mentioned, the company had 53,000 boe/d in net production during the fourth quarter.

Additional compression was also added to company's Eagle Ford gathering system in the fourth-quarter to achieve 52 mmcf/d of throughput capacity.

During the fourth-quarter, Anadarko had total onshore sales volumes of 609,000 boe/d. Of that, the Eagle Ford made up 8.7 % of total production.

Anadarko at a Glance in 2013

Q4 2014 Eagle Ford production at 53,000 boe/d
36,000 b/d of liquids brought to sales in Eagle Ford in Q4
~6% increase in production from Q3 2013
36% increase in production from Q4 2012
Q4 Eagle Ford production makes up ~9% of company-wide production during the quarter

Eagle Ford Helps Anadarko Achieve Record Onshore Production

November 11, 2013 R.T. Dukes

Anadarko Southern and Appalachia Sales Volumes Q3 2013

Anadarko set a new record for onshore U.S. sales volumes with 590,000 boe/d of production in the third quarter. The record was achieved through growth in areas like the Eagle Ford.

Anadarko's Eagle Ford production grew 4% from the previous period to 50,000 boe/d in the third quarter. More impressively, the company has grown production from the play by 38% over this time in 2012.

Anadarko operated nine rigs in the quarter and spud 97 wells. With the average drilling time coming in at less than ten days, the company expects to drill ~325 wells in 2013.

“We continue to demonstrate our commitment to value acceleration and portfolio management.”

— Al Walker, CEO

During the second half of the year, Anadarko's midstream infrastructure has expanded significantly:

Commissioned 3 oil stabilization trains with 75,000 b/d of capacity
Reached start up on an expanded gas gathering facility (500 mmcfd)
Added gas compression
Expects to add more compression and another 25,000 b/d oil stabilization train in the fourth quarter

Additional midstream infrastructure will allow for more predictable growth and allows the company to maximize the value of the liquids it produces.

Anadarko will likely spend more in the Eagle Ford in 2014 than the company spent in 2013.

Anadarko reached record production in the Wattenberg field, the Eagle Ford, East Texas Haynesville, the Greater Natural Buttes area in Utah, and the Marcellus Shale. Read the full release at anadarko.com

Anadarko - KNOC Tour of the Eagle Ford - Video

October 24, 2013 R.T. Dukes

Anadarko (APC) hosted KNOC and Korean media outlets for a tour of the Eagle Ford late last year. The video below provides a short overview of the trip and Anadarko's Eagle Ford operations.

Anadarko reports Q3 earnings on November 5th. We'll have another APC update for you then.

New Chesapeake CEO Doug Lawler Ran Anadarko's Eagle Ford Ops

May 21, 2013 R.T. Dukes

After embattled CEO and founder Aubrey McClendon left Chesapeake in April, the company has been searching for his replacement. On May 2oth, the company announced Robert "Doug" Lawler was chosen to take the reins as CEO.

Lawler comes from Anadarko Petroleum, where his most recent role was VP of international and deepwater operations. He has worked for Anadarko or one of its predecessors, Kerr-McGee, since 1988. My guess is he'll be moving from the Woodlands to Oklahoma City in short order.

“He is a proven oil and gas executive with significant expertise in asset development, operations management and engineering as well as experience in corporate and strategic planning. ”

Before his latest post, Lawler led shale developments for Anadarko. That means he is intimately familiar with two of Chesapeake's major plays, the Eagle Ford and Marcellus. He also boasts an engineering background, which likely means he has a little different perspective than the previous CEO. Chesapeake was formerly run by landmen who led the "land grab" of the past ten years.

Mr. Dunham, Chairman of the Board, said: “Doug is a talented and proven executive with the ideal skill set to lead Chesapeake forward and capitalize fully on our world-class assets."

Lawler will be tasked with developing the vast resources Chesapeake has already secured across the U.S. The company is the second largest natural gas producer in the country behind ExxonMobil.

Read the full press release at chk.com

Anadarko's Eagle Ford Well Costs Down Below $6 Million

May 9, 2013 R.T. Dukes

Anadarko's Eagle Ford production is up 55% from one year ago to 42,200 boe/d. Liquids volumes account for 28,000 b/d of production and grew even faster at a rate of 60% over the past year.

Anadarko drilled 70 Eagle Ford wells in the quarter with an average of eight rigs working. Drilling times continue to fall and many of the company's wells are now drilled in less than 10 days. Completion costs are coming down as well and the company is spending an average of $5.5-6 million per well.

Charles Meloy, Senior VP, stated "We are in the middle of doing tie-ins to the Brasada plant, and so we will have quite a bit of downtime associated in our Eagle Ford production area as we tie in the Brasada plant and the associated facilities in the field."

The company is bringing 200 mmcf/d of processing capacity online in the second quarter. The Brasada Plant is just south of Cotulla in La Salle County, TX, and will be completed in late May or early June. Anadarko has spent $100 million to build the plant and will increase its liquids yield even more when the plant comes online.

Read the full first quarter press release at anadarko.com