Anadarko Starts 96 Eagle Ford Wells In The Second Quarter

Anadarko EagleFord Production Graph Q213

Anadarko Petroleum released second quarter results and updated us on the company's Eagle Ford operations. The company spud 96 wells in the second quarter and plans to drill a total of 325 wells in 2013.

Eagle Ford production increased 13% over the first quarter to 48,000 boe/d. Liquids production accounted for almost 32,000 b/d or approximately two-thirds of the company's production in the region. That's up over 60% from the second quarter of 2012.

The company ran an average of nine rigs in the second quarter and invested a total of $35 million. Spud to rig release fell to 8.1 days from 9.5 days in the first quarter.

Much of Anadarko's Eagle Ford investment is carried as part of its JV with KNOC. The agreement called for KNOC to carry 90% of development costs up to $1.55 billion. The carry is expected to be exhausted by year-end 2013.

On the midstream side of the business, Anadarko brought on the 200 mmcfd Brasada natural gas processing plant in La Salle County, TX. The facility can recover up to 30,000 b/d of NGLs, which will add value to the company's production stream.

Anadarko also plans to bring on additional compression in the third quarter.

Read the company's full press release at anadarko.com

Anadarko Plans More Eagle Ford Drilling With Fewer Rigs

Anadarko Eagle Ford Acreage Map

Anadarko Petroleum's Eagle Ford assets will be developed with fewer rigs in 2013. Anadarko is dropping its average rig count from 10 to 8 after the company was able to drop its spud to rig release time by 26% in 2012. The average spud to rig release averaged 9.2 days during the quarter and a record 5.4 days was set.Anadarko hit another record as well when operated production surpassed 125,000 boe/d (54,400 net) at one point during the quarter. Production averaged 39,100 boe/d net during the quarter, which represents 71% growth over fourth quarter 2011 volumes.

The company continued its midstream expansion during the quarter as it extended an oil gathering line from Gardendale to Cotulla, as well as expanding gathering capacity to 350 mmcfd. On the processing side, the Brasada Plant, in La Salle County, is on pace to come online in the second quarter of 2013. The plant will be able to process 200 mmcfd and recover as much as 30,000 b/d of NGLs.

Anadarko's Eagle Ford Resource Estimate Swells to 600 mmboe

Anadarko Petroleum increased the number of identified Eagle Ford well locations to 4,000 and increased its resource estimate to 600 million barrels of oil equivalent.  That means total resource from the company's 400,000+ gross acres will stretch to more than 1 billion boe. Anadarko is partnered with KNOC across its Eagle Ford acreage. Anadarko also reached record production in the quarter. The company averaged more than 30,200 boe/d for an entire week. Sales volumes averaged 12,000 b/d of oil, 6,000 b/d of NGLs, and 59 mmcf/d of natural gas during the quarter.

The Brasada gas processing plant is also in service as of the first quarter. The plant has current capacity of 200 mmcf/d, but will have ultimate capacity of 455 mmcf/d when construction is completed in mid-2013.

Read more at our Anadarko Petroleum Eagle Ford Shale page.

Net Midstream 105-mile Expansion to Agua Dulce Planned

Net Midstream's subsidiary, Eagle Ford Midstream, LP, has plans to expand its existing pipeline system by 105-miles from La Salle County to Nueces County. Anadarko is supporting the pipeline through a long-term transportation agreement.  The addition will add 105-miles of 24-30 inch pipe that will transport residue gas from Anadarko's Western Gas (Brasada) processing plant in La Salle County, TX to the Agua Dulce Hub in Nueces County, TX.

The Eagle Ford Midstream system, as of the announcement, consisted of 55 miles of 16-inch pipeline in La Salle and McMullen counties that delivers gas to Net's La Salle Pipeline and the Transco Pipeline near Tilden, TX. Net's La Salle pipeline delivers gas to a power plant in Pearsall, TX and the Transco Pipeline is a major interstate pipeline operated by Williams that delivers gas from South Texas to the Northeast.

Read more about Eagle Ford Midstream at netmidstream.com

Enterprise Products Adding NGL Fractionators 7 & 8 at Mont Belvieu

Enterprise Product Partners is the latest of many Eagle Ford midstream companies that are adding infrastructure to handle growing NGL production. Enterprise is already constructing its sixth fractionator at Mont Belvieu and the latest announcement comes after Dow and Shell announced plans to go forward with new petrochemical plants in the U.S. The additions will add 150,000 b/d of incremental capacity in the fourth quarter of 2013 when total capacity will be more than 610,000 b/d at the facilities. That's more than double the capacity of Enterprise's plant just two years ago. The plans are supported by growing volumes of NGL production in the Eagle Ford Shale, Rocky Mountains, and West Texas.

Expanding Enterprise's Eagle Ford Midstream Business

The company is also extending its Eagle Ford NGL pipeline (450,000 b/d ultimate capacity) to Anadarko's Western Gas Brasada Processing Plant (200 mmcfd) in La Salle County, TX. The expansion adds over 173-miles of pipe, with capacity of 140,000 b/d, that will connect to Enterprises infrastructure near the company's processing plant in Yoakum, TX. The extension gives access to the Western Gas Plant and seven other South Texas processing facilities.

As of the announcement, Enterprise had completed 375 miles of natural gas pipelines in the South Texas Eagle Ford. The company's Eagle Ford Mainline system is close to completion and will be able to deliver 900 mmcfd of rich gas to the Yoakum plant. The Yoakum plant will begin processing rich gas in May and will reach full capability by the first quarter of 2013. At that time, the plant will be able to process 900 mmcfd of gas, with capacity of 110,000 b/d of NGLs.

Including Enterprise’s seven other integrated South Texas processing facilities, the partnership will be able to offer approximately 2.4 billion cubic feet per day of processing capacity for the region when Yoakum is fully operational.

What is a NGL Fractionation?

Once NGLs are processed out of the natural gas stream, wet-gas, the individual products must be separated to be marketed and consumed. Fractionators take the NGLs to their various boiling points and separate out the individual products - ethane, butane, iso-butane, propane, pentanes, and natural gasolines. Ethane is a common feedstock for petrochemical plants and butane and propane can be used for heating or in your lighters and grills.