If you are following the Oil & Gas Renaissance in America, you will most likely have heard of Bakken Shale, or Eagle Ford Shale, or even Marcellus Shale. There are others, and they will have their own impacts. This post is about the Niobrara shale in the Wattenberg field outside of Denver Colorado, which has just joined the list of major shale fields, that is expected to help America reach energy independence again.
The newest name to hit the spotlight in the news is the Niobrara shale in the Colorado area. This is the source rock for the Wattenberg O&G Field outside of Denver which is already considered 1 of the 20 largest O&G fields in America.
Anadarko announced today that they have reevaluated their land holdings, and based on an 11 well drilling campaign this summer, they believe that by using long laterals & multi stage fracking the old field will finally start to give up its liquid rich spoils.
We are talking about a field being upgraded to the 1 Billion Barrels of net recoverable resources. Anadarko plans on drilling 160 wells in 2012 and ramp up its development of long laterals going forward, with an estimated 1200-2700 drilling locations available.
Analysts at Tudor Pickering Holt praised Anadarko’s encouraging results from horizontal-drilling programs on the Wattenberg oil and gas field and said the company ranks as the “King of the Rockies,” in their view.
“The Wattenberg update exceeds our higher-than-Street expectations,” analysts said in a note to clients.Tudor Pickering upped its net-asset-value figure for Anadarko Petroleum by about $5 a share, to $114 a share, on the prospects for improved drilling results.
According to the WSJ, James T Hackett, the CEO of Anadarko is so bullish on these new unconventional sources of oil that he stated
James Hackett, chairman and chief executive of Anadarko Petroleum, said he thinks current North American oil production could be doubled in the next 25 years. “The resource is there and the technology is there,” he said in an interview.
The resources are there, the technology is there. The only question now is if the US Government is going to attempt to keep the resources in the ground while it subsides political donors pet green projects.