production

Anadarko Petroleum Corp. is buying BP America Production Co.’s 93% interest in the Wattenberg Processing Plant for $575.5 million. The plant in Adams County in northeast Colorado can process up to 195 MMcf/d of natural gas and 15,000 b/d of natural gas liquids and gas condensate. Upon closing Anadarko will operate and have 100% ownership. Anadarko volumes represent about 70% of plant throughput, said Chuck Meloy, Anadarko senior vice president of worldwide operations. “We are the largest producer in the Wattenberg field, with current sales volumes of approximately 63,000 boe/d, and our early efforts in the emerging horizontal Niobrara play are very encouraging,” Meloy said. The transaction is expected to close by mid-year, subject to regulatory approvals and contractual conditions.

Anadarko Petroleum Corp. is buying BP America Production Co.’s 93% interest in the Wattenberg Processing Plant for $575.5 million.

April natural gas futures worked lower Tuesday as traders continued to focus on expected production levels rather than near-term weather or storage. Near-term weather forecasts signal the end of what has been a very cold heating season, and short-term analysts have a $3.50 target in their sights. At the close April futures were down 6.3 cents to $3.864 and May lost 6.0 cents to $3.924. April crude oil declined 42 cents to $105.02/bbl.

Although Pennsylvania does not have a severance tax on natural gas production, the state is starting to collect more tax revenues from counties with significant Marcellus Shale development activity than from counties without it, according to a new report from Penn State University.

Although Pennsylvania does not have severance tax on natural gas production, the state is starting to collect more tax revenues from counties with significant Marcellus Shale development activity than from counties without it, according to a new report from Penn State University.

Gastar Exploration Ltd. announced Monday that it will lease about 3,300 gross acres in West Virginia from PPG Industries Inc. and plans to drill into the Marcellus Shale play as early as July.

A deal is on the table and could be completed in the coming weeks to bring in a partner to develop the Eagle Ford Shale, an Anadarko Petroleum Corp. executive said Thursday.

The Pennsylvania House of Representatives, which last year approved a natural gas severance tax bill only to see it die in a subsequent lame duck session, will have another chance to implement the tax during its 2011 current session.

Whether Range Resources unit Range Production Co. drilling in the Barnett Shale caused alleged water well contamination is a tough call, but it can be made on the evidence available, staff of the Railroad Commission of Texas (RRC) told hearing examiners in its closing statement on the case last Tuesday.