Anadarko Petroleum’s initial horizontal results in the Wattenberg Field indicate the company has 500 million to 1.5 billion boe in resource potential. That’s a mid point of 1 billion barrels net to the company. One billion barrels is a big boost to any area and any company.
Wattenberg Niobrara IPs from the first 11 horizontal wells have averaged 600 bopd and 1.5 mmcfd. The best well came online at more than 1,100 bopd and 2.4 mmcfd. That well will produce more than 600,000 boe over its life. Anadarko also has an economic advantage over its peers. The company inherited land grant acreage from UPR in 2000. That directly affects the average royalty burden, which is less than 8% across the area.
The only problem with the release is it tells us a lot about the Wattenberg field and little about the rest of the Niobrara. The Wattenberg has been heavily developed for decades and we knew recoverable oil numbers would be lucrative. What I”m really interested in is seeing what develops from the company’s additional 900,000 plus acres in other parts of the Denver-Julesburg and Powder River basins.
We’ll hear more from Noble soon, but with results like Anadarko’s, don’t expect development to slow down any time soon.
“Based upon the early results of Anadarko’s program in the Wattenberg field, we are confident the liquids-rich Horizontal Niobrara and Codell opportunity provides a net resource potential of 500 million to 1.5 billion BOE (barrels of oil equivalent); and it’s located right in the heart of one of our existing core areas,” said Anadarko Sr. Vice President, Worldwide Operations, Chuck Meloy.
Anadarko is the largest net producer in the liquids-rich Denver-Julesburg (DJ) Basin at greater than 70,000 BOE per day. The company holds interests in more than 350,000 net acres in the Wattenberg field, and operates more than 5,200 existing wells with an average working interest of approximately 96 percent, and an average net revenue interest of approximately 88 percent.
“Outside the Wattenberg field, we’re also exploring additional liquids-rich horizontal opportunities where we hold another 550,000 net acres in the greater DJ Basin and 360,000 net acres in the Powder River Basin. Each area is prospective for the Horizontal Niobrara, as well as other horizons that we will evaluate over time.”
Read the entire news release at anadarko.com