Wattenberg HZ presentation 4-9-12

www.anadarko.com | NYSE: APC

The Equipment: From Rig to Producing Well

Hydraulic Fracturing

Producing Well: 20+ YearsProducing Well: 20+ Years

Drilling Rig

Anadarko Petroleum Corporation 13


Horizontal Drilling

Commences with Common Rotary Vertical Drilling

Wellbore then Reaches a “KickoffWellbore then Reaches a “Kickoff Point”

Drill Bit Angles Diagonally Until

Kickoff Point~6,300 feet

Entry Point~7,000 feetg g y

the “Entry Point”

Wellbore Becomes Fully Horizontal to Maximize Contact Lateral LengthHorizontal to Maximize Contact with Productive Zones

Lateral Length



Horizontal Drilling – Significant Surface‐Space Reduction

Traditional Vertical Wells Horizontal Drilling

Anadarko Petroleum Corporation


Hydraulic Fracturing

Essential Technology in Oil and Natural Gas Production from TightProduction from Tight Sands and Shales

Involves Injecting a Involves Injecting a Mixture of Water, Sand and a Relatively Small Amount of Additives Under Pressure into

1+ Mile Separates Aquifer from Fractured Formation

Multiple Layers of Protective

Steel and CementUnder Pressure into Targeted Formations

Pressure Creates Pathways

Steel and Cement

Pressure Creates Pathways, Propped Open by Sand, for Oil or Natural Gas to Flow to the Wellbore



Hydraulic Fracturing Equipment

Water tanksWater tanks

BlenderBlenderF VF V

S d t kS d t k WellheadWellhead

Frac VanFrac Van

Sand tanksSand tanks Pump trucksPump trucksWellheadWellhead


17


Hydraulic Fracturing Technology

EquipmentWater TanksPump TruckspSand MoversBlenders

Frac DesignPrimarily Water and SandAdditives Include: Gel (ice cream) Biocide (bleach) Friction reducer (polymer used in make‐up, nail and skin products)

Anadarko Publicly Shares the Ingredients of All Hydraulic Fracturing Operations at


www.FracFocus.org


Hydraulic Fracturing is Transparent

Anadarko was Instrumental in Creating the Ground Water Protection Council’s Online Public Registry that Enhances Transparency b bli l h i h di d iby Publicly Sharing the Ingredients Used in Hydraulic Fracturing on a Per‐Well Basis.

GWPC’s Online Public Registry

Fracfocus.org

g y

Publicly Shares All FracingIngredients on a “Per‐Well” Basis

Available to Anyone at Any Time



Protecting Water Quality in Colorado

Anadarko is a Participant in Colorado’s Water‐Quality Sampling Program

Independent Third‐Party Experts Collect Water Samples Prior to Drilling …

And Again After Drilling

To Ensure Water Quality is Protected

All Water‐Quality Data is MaintainedAll Water Quality Data is Maintained by the Colorado Oil and Gas Conservation Commission



Coexist with agricultural operations…

WellheadWellhead WellheadWellheadWellheadWellhead WellheadWellhead

WellheadWellhead



Existing COGCC Hydraulic Fracturing Rules

Rule 317 ‐‐ Surface casing and cementing requirements and cement bond logRule 317B ‐‐ Setbacks and precautions near surface waterRule 906 – Spill containment and reportingRule 341 – Monitor pressures and reporting requirements Rule 907 Management of produced waterRule 907 – Management of produced water

Injection – COGCC permit processCommercial Facilities – CDPHE permit processLand Treatment – COGCC permit processCentralized E&P Water Facility – COGCC permit processReuse and Recycle – COGCC permit process



New COGCC Hydraulic Fracturing Rules

Publicly share ALL fluid additivesPublicly share both additives and ingredientsProtection of proprietary information allowed with theProtection of proprietary information allowed with the submission of a certification signed under the “penalty of perjury” by service providersEmergency professionals have access to proprietary informationEmergency professionals have access to proprietary informationPublicly share information via FracFocus within 60 days of hydraulic fracturing being completedS f l d i f i hSurface landowner information sheetProvide 48‐hour notification to COGCC prior to commencing hydraulic fracturing applicationsCOGCC will then notify LGD



How Much Is 5 Million Gallons Of Water?

• A Typical Wattenberg HZ Well Uses 3 - 5 MM Gallons

750704

A Typical Wattenberg HZ Well Uses 3 5 MM Gallons

• The Same Amount Is Consumed By:

472

204

364

1,000 MWh coal-fired

1,000 MWh nuclear

Corn Fieldover

Avg. golf courseevery014 34 52

114power plant in

11 HOURS

power plantin

6 HOURS

5 ACRESper

SEASON

y37 DAYS

Anadarko Petroleum Corporation


Water Usage – Additional Information



Environmental Protections & Best Management Practices

• Pad Drilling: Reduces Surface Space• Closed-Loop System: No Open Pits• Water Recycling: Conserves Water Usage• Green Completions: Reduces Emissions• FLIR Cameras: Identifies and Addresses Potential Leaks • Flowline Testing: Ensures System Integrity• Stuffing Box Shutoff: Enhances SafetyStuffing Box Shutoff: Enhances Safety• Drip Catch Pan: Protects the Surface• Oil Polishing Facility: Reduces Truck Traffic & Emissions• Automatation: Reduces Truck Traffic & Emissions

Ob ti R t E C li• Observation Reports: Ensures Compliance• Emission-Control Devices: Reduces Emissions



Recognition for Environmental Protection

Awarded as 2011 Outstanding Operator in the State of Colorado for:

Environmental Protection

Water-Quality Protection

Community Relationsy



Giving Back to the Community & Environment

Community InvolvementWeld Food BankWeld County Special OlympicsWeld County Fair and Junior AuctionHabitat for Humanity – 4th home under wayGreeley StampedeNational Western Stock Show and JuniorNational Western Stock Show and Junior AuctionAmerican Cancer Society Cattle Baron’s BallDearfield MonumentWeld Community FoundationWeld Community FoundationHistoric Ft. Lupton Support numerous Denver‐based charities and civic organizations

Addi i l E i l Additional Environmental Awards

IOGCC Chairman’s Stewardship Award


Wattenberg HZ presentation 4-9-12

Documents

Transcript of Wattenberg HZ presentation 4-9-12