By OGJ editors
HOUSTON, July 20 -- Anadarko Petroleum Corp. plans this year to drill 3-5 exploration wells, of which one could be a test on acreage owned by Chevron USA Inc. in the Delaware basin in West Texas.
The two companies have signed an exploration joint venture agreement that allows Anadarko to become operator and earn up to a 100% interest in Chevron's 200,000 net mineral acres. Chevron will retain royalty interests and have an option to take up to a 25% interest in each well.
The acreage overlaps and extends westward from Anadarko's existing leasehold, which includes the rapidly growing Haley gas field, with a current production of 175 MMcfd of gas.
Karl Kurz, Anadarko senior vice-president, said the Chevron acreage essentially more than doubles the company's net land position in the basin. Anadarko's existing holdings in the region total 264,000 gross acres (140,000 net), of which Haley field represents about 60,000 gross acres (44,000 net).
Kurz further said, "The Pennsylvanian zones we are targeting in the Delaware basin have already produced a cumulative 2 tcf of natural gas, and we believe more than 10 tcf of gross resource potential remains just on our captured land position, inclusive of the Chevron acreage."
Anadarko plans to operate as many as 13 drilling rigs in the region by yearend. This is up from the six rigs the company had working through May and the nine rigs currently drilling in the play.
