Armada Oil signs drilling agreement with Anadarko Petroleum

US-based oil and gas company Armada Oil has signed a drilling agreement with a subsidiary of Anadarko Petroleum Corporation, covering 8,200 acres in the Niobrara project, southern Wyoming, US.

Armada aims to drill its first well on or before 1 August, 2013.

The company has also received a continuous drilling option, under which it can drill vertical wells every 120 days and horizontal wells drilled every 180 days, as part of the deal.

Armada president James J Cerna said that the deal will unlock the significant potential in the Niobrara project.

"We believe this asset is especially distinctive because of the unique geology in the area as well as the ability to use new drilling and completion technologies," said Cerna.

The agreement will also allow Armada to share seismic data and provide Anadarko the results of the data that are obtained from the 3D seismic shoot, currently underway.

Armada’s original 26,000-plus acre Niobrara project is strategically situated near existing infrastructure in Carbon County, Wyoming.

Earlier in 2009, horizontal drilling and new completion technologies had made possible the discovery of Niobrara resource and has been continually optimized to increase the reserve potential.

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Image: Armada Oil has signed a drilling agreement with a subsidiary of Anadarko Petroleum Corporation. Photo: Armada Oil.