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 Texas where the company is developing the Eagle Ford Shale.
“We also continued to achieve reduced drilling cycle times, with notable improvements throughout the onshore portfolio. One of the most dramatic examples was in the Eagle Ford Shale, where our spud-to-release times are now less than 12 days compared to more than 22 days in mid-2009.”
“Turning to the Eagle Ford Shale in South Texas, we recently established ourselves as the largest producer in this play. With the existing infrastructure and service agreements in place, about 94% of all completed wells have been flowing to sales. We ended the quarter with gross sales volumes of about 27,000 barrels of oil equivalent per day, of which 75% is liquids. This represents a six-fold increase in volumes versus the prior year fourth quarter.”
“At current market prices, the Eagle Ford Shale is generating excellent economics. And with 450 million barrels of oil equivalent and net risk resource potential on our acreage and more than 2,000 identified well sites, we plan to ramp up to 10 rigs by the end of the first quarter of 2011 from two rigs at the beginning of 2010. We continue to evaluate the joint venture structure for our Eagle Ford Shale program similar to what we have done in the Marcellus.”
