Anadarko plans to invest $950M in D-J Basin during 2018

WOODLANDS, Texas  — Anadarko Petroleum Corp. (NYSE: APC) on Thursday said it expects to make capital investments in the range of $4.2 billion to $4.6 billion, including $950 million in the Denver-Julesburg Basin of northeast Colorado.

Woodlands, Texas-based Anadarko, an oil and natural-gas producer with an office in Evans, plans to average five operated rigs and three completions crews in the basin, where it has more than 2 billion BOE of net resources within its development area. BOE stands for barrel of oil equivalent,  a unit of energy based on the approximate energy released by burning one barrel, or 42 gallons of crude oil.  Typically 5,800 cubic feet of natural gas or 58 CCF is equivalent to one BOE.

The company expects to increase year-over-year oil sales volume from the D-J Basin by about 30 percent.

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“Our 2018 investment plan will again be driven by capital efficiency and financial discipline,” Al Walker, Anadarko’s president and chief executive said in a prepared statement. “These key tenets have served us well for the last decade, as growth within cash flow is fundamental to delivering capital-efficient returns. Our repositioned asset footprint is built to succeed in a market where oil prices exhibit volatility in a $45-$60 environment, with gas averaging $3 per thousand cubic feet.”