Anadarko ranked 48 out of the top 50 oil producers in revenue per well drilled in the Permian Basin. Anadarko averaged $1.5 million in revenue per well compared to $4.5 million for Oxy and $3.5 million for Chevron. Both Oxy and Chevron believe there is much more oil that can be recovered from existing Anadarko wells. Look this up for yourself.
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To LCF’s comment, APC is failing on ANY metric in the Delaware. Senior management can thank the decision to move only the willing to Midland, which turned out to be catastrophic for the company, and the proverbial final nail in the coffin.
That’s because APC is a c-ap operator and needs to be acquired. Fittest of the fit survive. Maybe one of the ‘best’ places to work in Houston but that doesn’t translate to good wells. APC has good assets in the Permian but they don’t deserve to operate it.
As with most shale plays, average recoveries tend to be much less than predicted, and costs tend to be higher than anticipated. Average revenues don't mean much unless they can cover the cost to acquire leasehold, and drill and complete an entire program of wells. Revenues are misleading, just like all the other headline bs that's prevalent in the industry right now (e.g. break-evens, IP rate, EURs etc.).
True cost or full cost?