Although the Wattenberg Field in Colorado has been in development since its discovery in 1970, it continues to show promise for both operators and investors according to a recent article by the Motley Fool.
The deployment of hydraulic fracturing in the area has led to a resurgence in profitability for companies like Synergy Resources and Anadarko Petroleum. Horizontal drilling methods have made the exploitation of the lucrative Niobrara and Codell formations a possibility.
Synergy resources is in the process of placing a third rig in the Wattenberg Field. Although their operation is small compared to others, their development on the northern extension of the Niobrara shale formation is projected to increase the company’s reserve base by approximately 1,200%.
Anadarko, holding a 350,000 net acre position in the Wattenberg Field, has 13 rigs in operation and is in the process of building essential infrastructure. In the first quarter of 2014, construction of the Front Range pipeline was completed in partnership with DCP Midstream Partners and Enterprise Products Partners. With plans to complete one Wattenberg well a day this year and the startup of its Lancaster gas processing plant, the field is quickly becoming one of Anadarko’s most lucrative assets.