Anadarko Petroleum (NYSE:APC) recently adjusted the potential resource levels at two projects in the company's portfolio and expects these areas to yield more oil and gas resources than previously expected.

Discount Brokers Comparison: Your one-stop shop for finding the perfect broker for your investments.

Mozambique
Anadarko Petroleum has been actively exploring for oil and gas in many frontier areas and has reported successful wells in many places, with several recent discoveries in offshore Mozambique. The company has a 36.5% working interest in Offshore Area 1 and is active in various parts of this concession area.

Anadarko recently completed a four-well appraisal program at the Golfinho/Atum area, and it expects gross recoverable resources here to range from 15 to 35 Tcf. The previous range for the Golfinho/Atum area was from 10 to 30 Tcf of gross recoverable resources.

The company also has from 17 to 30 Tcf of gross recoverable resources at the Prosperidade complex, located south of Golfinho/Atum in Offshore Area 1. The company did not revise the resource estimate here when it updated the Golfinho/Atum area.

Although Anadarko Petroleum has a huge amount of potential in offshore Mozambique, the development of these natural gas resources will take years and require the construction of a liquefied natural gas (LNG) facility. This facility is expected to begin operations in 2018.

Statoil (NYSE:STO) is active in offshore Mozambique and is the operator and 65% owner of Offshore Area 2 and 5. The company is also involved in Tanzania and reported a successful natural gas well here in early 2012.

Eni (NYSE:E) is the operator of Offshore Area 4 and has reported five successful exploration wells in this area to date. The company estimates that Offshore Area 4 has 70 Tcf of gas in place.


SEE: A Guide To Investing In Oil Markets

Wattenberg Field
Anadarko Petroleum is also conducting a horizontal development program in the Wattenberg field, targeting the Niobrara and Codell formations. The company revised upward the estimated amount of recoverable resources in the Wattenberg program to a range of 1 billion to 1.5 billion barrels of oil equivalent (BOE). The previous estimate range of recoverable resources was 500 million to 1.5 billion BOE.

Anadarko reported gross production of 37,000 BOE per day from its Wattenberg horizontal program and estimates that it has approximately 2,000 drilling locations to exploit on its 350,000 net acre position.

Another company active in the Niobrara play is Whiting Petroleum (NYSE:WLL), which has an ongoing development program at the Redtail prospect. The company reported that part of its acreage is prospective for both the Niobrara A and B zones and has drilled two wells into the Niobrara A to test the resource potential of this bench.

SEE: Oil And Gas Industry Primer


The Bottom Line
Anadarko Petroleum has a diversified exploration portfolio and has been aggressively drilling and appraising these areas over the last few years. These areas will help generate long-term production and reserve growth.

At the time of writing, Eric Fox did not own any shares in any company mentioned in this article.

Related Articles
  1. Personal Finance

    A Day in the Life of an Equity Research Analyst

    What does an equity research analyst do on an everyday basis?
  2. Mutual Funds & ETFs

    ETF Analysis: PowerShares S&P 500 Downside Hedged

    Find out about the PowerShares S&P 500 Downside Hedged ETF, and learn detailed information about characteristics, suitability and recommendations of it.
  3. Mutual Funds & ETFs

    ETF Analysis: ProShares Large Cap Core Plus

    Learn information about the ProShares Large Cap Core Plus ETF, and explore detailed analysis of its characteristics, suitability and recommendations.
  4. Mutual Funds & ETFs

    ETF Analysis: iShares Core Growth Allocation

    Find out about the iShares Core Growth Allocation Fund, and learn detailed information about its characteristics, suitability and recommendations.
  5. Mutual Funds & ETFs

    ETF Analysis: iShares MSCI USA Minimum Volatility

    Learn about the iShares MSCI USA Minimum Volatility exchange-traded fund, which invests in low-volatility equities traded on the U.S. stock market.
  6. Stock Analysis

    Should You Follow Millionaires into This Sector?

    Millionaire investors—and those who follow them—should take another look at the current economic situation before making any more investment decisions.
  7. Professionals

    What to do During a Market Correction

    The market has corrected...now what? Here's what you should consider rather than panicking.
  8. Mutual Funds & ETFs

    ETF Analysis: Vanguard Mid-Cap Value

    Take an in-depth look at the Vanguard Mid-Cap Value ETF, one of the largest and most popular mid-cap funds in the U.S. equity space.
  9. Mutual Funds & ETFs

    ETF Analysis: Schwab US Broad Market

    Take an in-depth look at the Schwab U.S. Broad Market ETF, an incredibly low-cost fund based on a wide selection of the U.S. equity market.
  10. Professionals

    Tips for Helping Clients Though Market Corrections

    When the stock market sees a steep drop, clients are bound to get anxious. Here are some tips for talking them off the ledge.
RELATED TERMS
  1. Equity

    The value of an asset less the value of all liabilities on that ...
  2. Hard-To-Sell Asset

    An asset that is extremely difficult to dispose of either due ...
  3. Sucker Yield

    When an investor has essentially risked all of his capital for ...
  4. Benchmark Crude Oil

    Benchmark crude oil is crude oil that serves as a pricing reference, ...
  5. PT (Perseroan Terbatas)

    An acronym for Perseroan Terbatas, which is Limited Liability ...
  6. Ltd. (Limited)

    An abbreviation of "limited," Ltd. is a suffix that ...
RELATED FAQS
  1. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  2. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  3. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>
  4. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
  5. What is the difference between issued share capital and subscribed share capital?

    The difference between subscribed share capital and issued share capital is the former relates to the amount of stock for ... Read Full Answer >>
  6. What happens to the shares of stock purchased in a tender offer?

    The shares of stock purchased in a tender offer become the property of the purchaser. From that point forward, the purchaser, ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!