Monday, March 26, 2012

Anadarko's Haynesville Liquids

It's old news by now, but in its analyst day presentation two weeks ago, Anadarko reported that it is "super excited" about the potential for liquids in its Haynesville and Cotton Valley acreage in Panola Co., TX.  The company is seeing 35% liquids in its wells (29% NG liquids, 7% oil) and sees the potential for 1.1 million BOE estimated ultimate recoveries from these wells.  Management called this a "300 million barrel opportunity" and says, "we are attacking it."

Anadarko's rig count in the region began to spike in fall 2011.  The company is running five rigs in Panola Co. and plans to increase that number to six to eight.  The company says that the liquid component is unique to its acreage.  In reviewing the company's recent Panola Co. filings, I only saw a handful of wells with liquids production, and much of it was pretty low (i.e. 6 to 60 Bbl/day).  Since the rig count climbed only recently, we should be on the lookout for some liquidy wells in the coming months.

Interestingly, the company said that its Haynesville wells yielded better economics than its Cotton Valley wells, which is likely because the two formations yielded the same percentage of liquids (which also surprised me).

While it is very unusual to hear of liquids in the Haynesville, it is not unprecedented, and the Anadarko activity may have contributed to the rumors of deep oil underneath the Haynesville formation.

1 comment:

Anonymous said...

Devon must have found the same liquids in Harrison county. They are permitting and drilling all over Harrison County. They couldn't be just looking for gas. Rumors are they have found the oil as well.