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.

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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.

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