Anadarko Discloses Major Oil Find in Colorado

Wall Sreet Journal ^ | 14 November 2011 | RUSSELL GOLD

[Fractal Trader]

ping.

[SouthTexas]

Shhh, don’t let the one hear this.

[thackney]

I was just reading this, not 5 minutes ago.

Anadarko Provides Horizontal Niobrara Update
http://www.anadarko.com/Investor/Pages/NewsReleases/NewsReleases.aspx?release-id=1630127

Wattenberg HZ Program Highlights

Future drilling locations: 1,200 - 2,700
Estimated ultimate recoveries (EURs): 300,000 - 600,000 BOE per well
Net resources: 500 million - 1.5 billion BOE
Initial well costs: $4.0 - $5.0 million
Liquids ratio: ~ 70 percent

[cicero2k]

Wow, this is my backyard!

There will be lots of dough flushing through Denver.

[Marine_Uncle]

Perhaps of interest to you if you have not yet seen it.

[bkopto]

in the latest sign that energy production in the U.S. is set to surge.

HAAHAAAAA! You're kidding, right WSJ? Not until the dems in congress and the socialist in the White Hut are thrown under their respective buses.

Even then, the well-funded environmental NGOs will be on the case, filing suit after suit after suit to stop any progress

[Paperpusher]

Peak Oil? Yea, sure.

[WOBBLY BOB]

[guitarplayer1953]

the 7 sisters of oil will not let this oil come to market. Look for this company to be bought out and the well shut down. for more information on the 7 sisteras read a great book by Dean Henderson Big Oil & Their Bankers In the Persian Gulf: Four Horsemen, Eight Families and Their Global Intelligence, Narcotics and Terror Network

[dennisw]

Get rid of Jug Ears and this economy can surge. Until then we are shackled by EPA and Dept of Interior eco-kooks

[Fractal Trader]

Is this shale-related? They do not seem to mention it.

I know we discussed a while back that there were some really interesting experiments with shale-derived oil in Colorado (similar to Israel’s newfound reserves). Is this related?

[crusty old prospector]

The Niobrara is more of a chalk with source rock interbedded within it. Similar to the Austin Chalk of Texas, with the Eagle Ford Shale underlying it.

[Milton Miteybad]

the 7 sisters of oil will not let this oil come to market. Look for this company to be bought out and the well shut down. for more information on the 7 sisteras read a great book by Dean Henderson Big Oil & Their Bankers In the Persian Gulf: Four Horsemen, Eight Families and Their Global Intelligence, Narcotics and Terror Network.

First of all, the "Seven Sisters" of 60 years ago no longer exist, as such. Only four remain today, and only one of those is operating under the same name it had in the 1950s (Royal Dutch/Shell). Secondly, this discovery was by Anadarko Petroleum, a "super-independent" whose very size would represent a formidable challenge as an acquisition target. Not saying that one of the remaining majors couldn't make a play for APC, but we can probably rule out two of the remaining "Seven Sisters" straight away: 1) BP, which has its own problems right now, and ExxonMobil, which is still digesting its large acquisition of XTO Energy in 2009.

That leaves Chevron and Royal Dutch/Shell, but you can likely rule out RDS because they've historically been more of a downstream (refining and marketing) outfit than an upstream one (exploration and production.) RDS would probably be satisfied to buy the production from Anadarko just so they can continuing feeding their refining network. Chevron probably wouldn't be interested in acquiring APC because they already have plenty of assets in the Lower 48 from their acquisitions of Gulf Oil in 1984 and Texaco in 2001.

[crusty old prospector]

Wall Street must be skeptical as their stock (APC) fell on the news. The Niobrara has been a tough nut to crack because of its high clay content (i.e. not as much porosity and difficulty in fracing due to its ductile nature) than other shale plays.

[crusty old prospector]

Oops, I guess the news was released after the close. Looks like their stock is up some in after-hours trading.

[2harddrive]

US oil and gas CANNOT surge while the Muslim imposes illegal drilling moratoriums and bans oil & gas pipelines!

[Recon Dad]

the 7 sisters of oil will not let this oil come to market.

You need to get a little more current on the state of oil around the world.

Oil is being found everywhere right now in all forms, shale, sand, in the east and in the west. There are lots of companies doing just what Anadarko is doing. The only one that will stop them is Obama.

[Recon Dad]

The Niobrara has been a tough nut to crack because of its high clay content (i.e. not as much porosity and difficulty in fracing due to its ductile nature) than other shale plays.

They seem to be getting some decent flow rates out of the 11 wells

“The results to date demonstrate the Wattenberg HZ program is among the most cost-efficient development projects in our U.S. onshore portfolio, and with initial wells averaging payouts of 10 months, we expect it to quickly become a self-funding, significant cash-flow generator,” said Meloy. “With our extensive land position and the drilling results to date, we envision drilling another 1,200 to 2,700 horizontal wells in the core Wattenberg field acreage.

[thackney]

7 sisters of oil

You are way out of date. Many of the 7 sister no longer exist and those that are left have next to no influence compared to the national oil companies. Those days ended decades ago.