Anadarko Petroleum (APC) reported earnings for the fourth quarter of 2010 and held a conference call on February 1, 2011, with investors and analysts to discuss the results. The company disclosed additional data on its operations in the Marcellus Shale.
“The Marcellus Shale continues to be the only major area where we are drilling for dry natural gas due to the proximity to premium gas markets, which further enhance the already robust economics of the play. We exited the year with approximate gross sales volumes in the Marcellus Shale of 330 million cubic feet per day from about 70 wells…The decline rates are in line with our expectations on our tight curves that we've provided in the past.”
“Growing inventory of wells that are not flowing the line -- if we look across our portfolio and I'll focus on the Marcellus because it's probably the example with the largest non-producing inventory. It's now approaching 200 wells.”
“50 wells that are now under some stage of completion. And that is just associated with the complexity of the process of completing a horizontal well… 75 wells that are waiting on the completions, waiting for them to get in line on the completions. And finally, though we have several wells in the order of 70 wells that have actually been completed that are waiting on the pipeline connections.”