At an investor conference held by Anadarko Petroleum the company presented its plans for the next couple years on their planned activities in the Niobrara. First and foremost, Anadarko (due to their their possession of the old Union Pacific checkerboard land grants in the 19th century), holds a commanding and perpetual mineral acreage position in the Denver Basin. All those little yellow squares in the image are Anadarko Leases.
To highlight some important statistics from the investor presentation: Anadarko has identified some 1200 -2700 potential drill sites, 3000 miles of existing pipeline, and plans for a new processing plant. They estimate that they have the ability to recover between 15-20% of the oil existing in every section using their horizontal drilling technology, and that each section can contain between 15 to 30 MMBOE. Anadarko also commented that results from wells drilled outside of the Wattenberg field has “de-risked” the Niobrara. My interpretation of that statement is they certainly will not be shy about drilling outside the Wattenberg field as they develop their acreage.
When you start adding up all those little yellow squares and start multiplying by millions and then multiplying that result times the current price of a barrel of oil… you come up with some very big numbers.
I don’t want to spoil the ending, so I encourage you to view the Anadarko Investor Presentation and see it for yourself. With these types of numbers I believe you will see Anadarko Petroleum making history in this play for a very long time.
It has been said by the current administration that the United States cannot drill itself out of its oil supply problem. It is my opinion that Anadarko Petroleum and others plan to challenge that assumption with their domestic drilling programs.