Anadarko and Newfield have something in common (probably many things but here is one), they both acquired a substantial amount of Maverick Basin, prospective Eagle Ford acreage from the bankrupt TXCO. These two operators are in different phases of development so I’ll break down their reported operations individually. First though, here is a map of their 2010 permits to which I will refer to.
Newfield has stated they are in the assessment phase of their Eagle Ford program. It will be a North-South assessment. I have already blogged about how Newfield is significantly reducing Woodford CAPEX and will allocate this free capital to the Eagle Ford and Alberta Basin (oily areas instead of gassy). Newfield said they will not release production information until the end of the year or early next year. They will operate 9 rigs targeting the Eagle Ford for the rest of the year and spend about $100MM. You can see from the map the North-South nature of their program. It is unfortunate we will not hear production information for a while, but I suspect Drillinginfo will have some completion reports or other data to glean from before then.
Anadarko has been active in the play since last year. The early data was up and down and inconclusive. Some of the production curves displayed strange behavior and I believe this was in large part due the exploratory nature of the early program, probable midstream issues (as illuminated by their JV partner SM Energy), and experimentation with engineering practices such as restricted rates and completion design. Regarding midstream issues, they said that they do not foresee this to be a problem for the second half of 2010. Anadarko has stated they are in development mode and the ramp-up can be seen in the permit count and production history.
Anadarko said they will be evaluating the potential for an incremental JV to further jump start the program and increase returns. The current well costs are $4.5 MM, dominated on the completion side. EURs are > 300 MBOE. An additional benefit of their acreage is the Pearsall shale. It is dry gas and present on a significant portion of their acreage. The Eagle Ford will HBP it, and when gas prices come back, the Pearsall will be an option.
Check the DNA Eagle Ford Unconventional Update for more Eagle Ford news and analysis, all that is required is a drillinginfo login.
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