Anadarko Petroleum Corp. said Monday that results from early drilling indicate that the company could produce the equivalent of more than 1 billion barrels of oil from an energy field in Colorado.
Anadarko said that 11 horizontal wells drilled in the Wattenberg field yielded "strong" initial rates of production and high levels of liquids, which have commanded better prices than natural gas.
The Houston company said its program of horizontal drilling in the Wattenberg field is among its best on U.S. land and should quickly generate "significant" cash flow.
The region could produce the equivalent of 500 million to 1.5 billion barrels in oil, natural gas liquids, and natural gas, Anadarko said.
The company said it plans to drill 160 horizontal wells in the area next year, up from previous plans for 40 wells, and could eventually put 1,200 to 2,700 wells there.
Anadarko said it holds interests in more than 350,000 acres in the Wattenberg field and operates more than 5,200 wells.
Anadarko shares fell $1.44 to close at $79.28. In extended trading after the announcement, they were up $1.46 at $80.74.