Wells represent production of 13,000 net BOEPD
In the wake of an April 17th home explosion in Firestone, Colorado, in Weld County, where it is one of the largest oil and gas operators, Anadarko Petroleum (ticker: APC) announced that it has opted to shut in 3,000 producing vertical wells in northeastern Colorado, in order to complete comprehensive well inspections.
Anadarko said it has begun the inspection process for all of its wells and the related equipment associated with them. The company said it expects the inspections will take two to four weeks, depending on weather. The wells currently account for total production of about 13,000 net barrels of oil equivalent per day (BOEPD).
“This terrible tragedy has left all of us with heavy hearts, and the families and their loved ones are in our thoughts and prayers,” said Anadarko Chairman, President and CEO Al Walker.
Cause still undetermined, but APC taking no risks
Even though there has been no determination that there is any connection between the well and the incident that destroyed the home, the impetus for the shut-ins and inspections is the fact that a 1993 vintage vertical well that today is operated by Anadarko was close to the home that was destroyed on April 17, but the cause of the explosion is still undetermined and it is still under investigation by local fire authorities.
In a statement issued April 26, Anadarko said, “While these events remain under active investigation and much remains to be determined, in an abundance of caution, since the company operates more than 3,000 producing vertical wells of the same vintage, it has taken proactive measures to shut in all vertical wells across the counties in northeast Colorado where it operates.
“Our teams will remain actively engaged with residents in the Firestone community,” said Brad Holly, Anadarko Sr. Vice President, U.S. Onshore Exploration and Production. “Colorado residents must feel safe in their own homes, and I want to be clear that we are committed to understanding all that we can about this tragedy as we work with each investigating agency until causes can be determined.”
Frederick-Firestone Fire Protection District Chief Theodore Poszywak said his department is attempting to determine the cause of the explosion. “While the well in the vicinity is one aspect of the investigation, this is a complex investigation and the origin and cause of the fire have not been determined,” Poszywak said, according to reports by the Denver Post.
Homeowner was working on water heater: family members
The Post reported that according to family members, the homeowner and a relative were working on a hot-water heater in the basement of the home when the house exploded. Two men were killed, and one person was seriously injured. The home that was destroyed was built in 2015 according to that report.
“The wells will remain shut in until the company’s field personnel can conduct additional inspections and testing of the associated equipment, such as facilities and underground lines associated with each wellhead. Particular focus is being placed on areas where housing and commercial developments are occurring in close proximity to existing infrastructure. The wells will not be restarted until each has undergone and passed these additional inspections,” Anadarko said in its statement.
Anadarko said the older vertical well that was drilled by a previous operator in 1993 is located approximately 200 feet from where the home in Weld County was later built. The company has been working cooperatively with fire officials and state regulatory agencies in their investigations since the time of the accident, according to the Anadarko statement.
