Anadarko (APC) Says Core Operating Areas Surpass Production Milestone; Reaffirms Outlook
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Anadarko Petroleum Corporation (NYSE: APC) provided an update on its U.S. onshore activities, announcing that four of its core operating areas recently surpassed the gross processed production milestone of 100,000 barrels of oil equivalent (BOE) per day.
The Wattenberg field in northeastern Colorado, the Eagleford Shale in southwest Texas, the Greater Natural Buttes area in northeastern Utah and the Marcellus Shale in north-central Pennsylvania each achieved production records during the month of November, with all exceeding gross processed production levels of 100,000 BOE per day. The Wattenberg field continues to deliver significant growth, with sales volumes expected to grow more than 10 percent sequentially from the third quarter of this year. This growth rate is highlighted by the performance of the horizontal program, which recently established a gross production record of more than 45,000 BOE per day. Additionally in the field, the company continues to enhance its capital efficiency by optimizing lateral lengths, completions stages and well density, while increasing the footage drilled and reducing drilling cycle times.
Anadarko's operations in the liquids-rich Eagleford Shale also continue to exhibit significant growth in sales volumes, while realizing further improvements in drilling and completions performance. To date in the fourth quarter of 2012, the company's drilling cycle times have averaged less than 9.5 days per well, representing a 25-percent improvement compared to the fourth quarter of 2011, with a recent all-time record of 5.4 days for a 12,000-foot well. Anadarko also continues to achieve production records in its liquids-rich East Texas horizontal program and in the Permian Basin's Avalon Shale and Bone Spring plays.
"Surpassing the milestone of 100,000 BOE per day in four of our core U.S. onshore operating areas demonstrates the quality, capabilities and increasing scale of Anadarko's portfolio," said Anadarko President and CEO Al Walker. "Our ability to continue driving production growth in a very capital-efficient manner supports our confidence in the portfolio's ability to deliver full-year sales volumes within guidance (265 to 267 million BOE) on the strength of U.S. oil and natural gas production, which is expected to offset our decision to reject ethane in certain fields. Finally, we expect to deliver these results while improving our direct oil and gas operating costs by an additional 15 cents per BOE in the fourth-quarter to a new range of $3.90 to $4.00 per BOE."
The Wattenberg field in northeastern Colorado, the Eagleford Shale in southwest Texas, the Greater Natural Buttes area in northeastern Utah and the Marcellus Shale in north-central Pennsylvania each achieved production records during the month of November, with all exceeding gross processed production levels of 100,000 BOE per day. The Wattenberg field continues to deliver significant growth, with sales volumes expected to grow more than 10 percent sequentially from the third quarter of this year. This growth rate is highlighted by the performance of the horizontal program, which recently established a gross production record of more than 45,000 BOE per day. Additionally in the field, the company continues to enhance its capital efficiency by optimizing lateral lengths, completions stages and well density, while increasing the footage drilled and reducing drilling cycle times.
Anadarko's operations in the liquids-rich Eagleford Shale also continue to exhibit significant growth in sales volumes, while realizing further improvements in drilling and completions performance. To date in the fourth quarter of 2012, the company's drilling cycle times have averaged less than 9.5 days per well, representing a 25-percent improvement compared to the fourth quarter of 2011, with a recent all-time record of 5.4 days for a 12,000-foot well. Anadarko also continues to achieve production records in its liquids-rich East Texas horizontal program and in the Permian Basin's Avalon Shale and Bone Spring plays.
"Surpassing the milestone of 100,000 BOE per day in four of our core U.S. onshore operating areas demonstrates the quality, capabilities and increasing scale of Anadarko's portfolio," said Anadarko President and CEO Al Walker. "Our ability to continue driving production growth in a very capital-efficient manner supports our confidence in the portfolio's ability to deliver full-year sales volumes within guidance (265 to 267 million BOE) on the strength of U.S. oil and natural gas production, which is expected to offset our decision to reject ethane in certain fields. Finally, we expect to deliver these results while improving our direct oil and gas operating costs by an additional 15 cents per BOE in the fourth-quarter to a new range of $3.90 to $4.00 per BOE."
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