Anadarko Petroleum (APC) reported earnings for the first quarter of 2010, and during the conference call, the company made comments on its unconventional resource basins, including the Marcellus Shale.
Anadarko Petroleum has 750,000 gross acres in the Marcellus Shale and is continuing to develop this play due to what the company feels is strong economics despite low natural gas prices.
“The Marcellus Shale, given its strong economics, is currently the only area of pure natural gas drilling, in which we are prudently increasing our activity levels. The increased investments are being carried by Mitsui through the joint venture agreement that we closed in the first quarter.”
“Currently, we are producing approximately 120 million cubic feet of natural gas per day on a gross basis from the Marcellus from about 30 wells with about 80 wells in various stages of completion, as three folds to our 2009 exit rate of about 40 million cubic feet per day gross.”
“We can make this particular play highly attractive because we think the break even economics on the Marcellus are somewhere around $3 at the NYMEX.”
Source: Seeking Alpha