In the Wattenberg field, situated in the Rockies, Anadarko Petroleum (APC) reduced drilling cycle times by approximately 20% in 3Q15, which resulted in a 15% reduction in drilling costs per foot versus 2Q15.
In the Delaware Basin Wolfcamp Shale, APC reduced drilling costs to around $7.5 million per well. It anticipates further reductions of $1.5–$2 million per well.
APC noted in its 3Q15 earnings conference that it will continue to invest in higher-percentage and longer-cycle opportunities such as exploration. As it did in 2015, the company will invest less in US onshore projects and concentrate instead on mega-projects such as Heidelberg and the Mozambique LNG (liquefied natural gas) projects.
Anadarko’s Core asset plays
APC will be directing most of its onshore capital expenditure to the DJ Basin and the Delaware Basin in 2016. Around 40% of its 2016 capex will be spent on short-cycle projects as a whole, the majority of which will be spent on these two basins.
Other operators in the DJ Basin include EOG Resources (EOG) and Noble Energy (NBL). Operators in the Delaware Basin include ConocoPhillips (COP). You can read a detailed overview of COP at ConocoPhillips: the Investor’s Guide You’ve Been Waiting For.