Wasn't going to post since no news from AKK but thought some...

Wasn't going to post since no news from AKK but thought some might appreciate the information. (Hi BBB - didn't kow you held this one).

Nothing too controversial but since I follow APC (Anadarko Petroleum) I'll copy n paste related commentary regading Wattenberg field, since it has some interest for y'all.


"...The Wattenberg field in Colorado was the single largest contributor to this growth increasing liquid sales volumes by 11,000 barrels per day over 2011, total production of 18,000 BOE per day, which generated rates of return in excess of 100%..."

"...To the south of our core Wattenberg acreage, we closed the $114 million transaction for 59,000 acres retaining a 20% royalty interest on fee acreage and believe by doing this we have accelerated the value of these assets by using third-party capital..."




"..Scott Hanold - RBC Capital Markets

Yes, thanks, A couple of follow-ups here. On the Wattenberg area, you sold some acreage just south of the Wattenberg area. Have you all done any drilling down there? What can you say about some of the prospect in that acreage drilled at Wattenberg?

Chuck Meloy - Senior Vice President, U.S. Onshore Exploration and Production

Scott, this is Chuck. What we have done is put together a lease package and we sold it to increase activity in the basin. We of course, obtained an overriding royalty position in that from our land grant. So we have a lot of economic value still going for it there. We look at it as very perspective. We are going to focus on is what we view as a big thing and that’s Wattenberg. The reason we are doing that is to continue to accelerate the value of delivery out of Wattenberg.

Al Walker - President, Chief Executive Officer

Scott, this is Al. I think of that as just our ability to use the land grant and a way to do R&D with somebody else's capital. We are very interested to see how that turns out. We do think it is prospective. I think this is gives us some option value.

Scott Hanold - RBC Capital Markets

Okay, so you all have been turning the drilling yourselves down there? Is that fair?

Al Walker - President, Chief Executive Officer

Well, I would say, very limited. Nothing that would be material enough to discuss but I think our view is that in order to do the work and stay focused on the core area of field, we thought this was the best way to do that and be able to test some ideas down there. Keep in mind, outside of Wattenberg, we have more than 500,000 acres. So, we have got a lot here we would like to be able to use and get to know better by using other people's capital..."



Even giants like $40B APC like to use OPC - similar to RC!

Hope you get something out of that


Full transcript available at
http://seekingalpha.com/article/1157911-anadarko-petroleum-s-ceo-discusses-q4-2012-results-earnings-call-transcript?part=single