Anadarko slates $535 million for Bossier play
Anadarko Petroleum Corp., Houston, said Thursday it will spend $535 million this year to expand its operations in the Bossier gas play of East Texas. The planned Bossier spending is up 32% from last year. The company produced 60 bcf (net) from both areas of the Bossier development last year, up from 22 bcf in 1999, and expects to produce 90 bcf (net) in 2001.
Anadarko Petroleum Corp., Houston, said Thursday it will spend $535 million this year to expand its operations in the Bossier gas play of East Texas.
The planned Bossier spending is up 32% from last year. About $420 million will go toward drilling and completing 36 exploratory and 186 development wells and more than $100 million for lease acquisition, expansion, and upgrades of gathering lines and treating facilities.
"This increase in our spending for East Texas will allow us to carry out an expanded exploration program and build on the success we've enjoyed so far,'' said John Seitz, Anadarko president and CEO.
"Our strategy in 2000 was to expand our lease position. Now we're in a good position to pursue a more extensive drilling campaign,'' Seitz added. "We plan to increase our Bossier exploratory program by roughly 70% in 2001.''
Seven wildcats drilled last year in East Texas encountered commercial amounts of gas in the Bossier. Along a similar trend in North Louisiana, the company drilled two wildcats; one was not commercial, and the second was under evaluation.
The best Bossier well last year was the Blair A-3, an extension of Dew field in Freestone County, which flowed 50 MMcfd with 4,600 psi of casing pressure.
The Thigpen A-1, also an extension of Dew field, flowed 15.7 MMcfd with 3,400 psi.
Anadarko drilled 142 development wells in the Bossier last year and increased its lease acreage holdings 150% to 250,000 acres in East Texas and parts of North Louisiana.
The company produced 60 bcf (net) from both areas of the Bossier development last year, up from 22 bcf in 1999, and expects to produce 90 bcf (net) in 2001.
"The Bossier accounted for over one-third of our total gas production last year and became our single biggest US natural gas field�bigger than the giant Hugoton gas field in southwest Kansas, where Anadarko began,'' Seitz said. "The steady and predictable performance of these Bossier wells, plus our very high success rate, good cost control, and improvements in reservoir productivity through fracture stimulation all combine to make this project one of the most attractive investments in Anadarko's portfolio.''
Anadarko currently has 27 rigs drilling for the Bossier sands in East Texas and six drilling a similar type play in Jackson Parish, La. This week, Anadarko was due to drill its 300th well in the Bossier. The company expects the total producing well count to be more than 500 in the region by the end of 2001.
Anadarko recently bought 31,000 acres of leases and 10 MMcfd (net) of gas production in the Bossier. And it plans to expand its Bethel treating plant in Anderson County, which it purchased in December from Western Gas Resources Inc. (OGJ Online, Jan. 4, 2001).