Anadarko Petroleum Corp.
) provided an update on its operations at the Greater Wattenberg
area of northeastern Colorado subsequent to the devastating flood
that occurred in early Sep 2013. Anadarko operates over
5,800 wells, 2,500 storage tank facilities and 3,200 miles of
pipeline in the Greater Wattenberg area.
Extensive flooding prompted the company to shut down 675
operating vertical wells. The majority of Anadarko's locations
were unharmed owing to its sincere adherence to pro-environment
standards, safety guidelines and facility construction
requirements. Also, no environmental impact related to the
company's drilling or hydraulic fracturing activities was
Transportation infrastructure was badly hit with roads,
bridges and rail witnessing massive damages. This disrupted the
movement of heavy equipment such as rigs and compression units
needed for its drilling, completions and construction activities
in the area. Anadarko anticipates temporary delays in its
expansion efforts will shrink overall projected sales volumes by
roughly 2.5 million barrels of oil equivalent (BOE) in 2013.
Despite the setback, Anadarko is optimistic of its total sales
volume to still be within the previously estimated range of 281
to 287 million BOE in 2013. Increasing reserves at Anadarko's
prospects in the Permian and the Utica basins will drive the
company's sales volume. This will be further supported by the
restart of the Caeser/Tonga block by year-end 2013 and favorable
results from its Wolfcamp prospects in the Delaware basin.
Internationally, Anadarko's El Merck project in Algeria is
expected to contribute 30 thousand barrels per day (MBbls/d) of
production by 2013. The company will accelerate its activities in
the Wattenberg field as conditions gradually improve. Anadarko
plans to drill 350 to 400 new horizontal wells in 2014 and
conclude its infrastructure development initiatives.
Recent study show tremendous reserve potential at Anadarko's
key operational basins. Permian is expected to provide reserves
worth more than billion barrels of oil with a life-span of 100
years while Algeria's oil and natural gas output is expected to
double in the next 7 to 10 years. Anadarko is also bolstering its
natural gas reserves with the ongoing shale boom acting as a
Currently, Anadarko carries a Zacks Rank #2 (Buy). Other
better-placed oil and gas operators include Zacks Ranked #1
Matador Resources Co.
Stone Energy Corp.
Swift Energy Co.
ANADARKO PETROL (APC): Free Stock Analysis
MATADOR RESOURC (MTDR): Free Stock Analysis
SWIFT ENERGY CO (SFY): Free Stock Analysis
STONE ENERGY CP (SGY): Free Stock Analysis
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