Anadarko Shares Dive as Wells Close

Shares of Anadarko Petroleum Corp plunged on Thursday after the oil and natural gas producer said it would temporarily close more than 3,000 wells in Colorado in the wake of an explosion that killed two.

 

The company's stock fell more than 5 percent to $56.69 in Wednesday afternoon trading, touching six-month lows.

 

A recently built home in Firestone, roughly 30 miles (48 km) north of Denver, exploded on April 17. Local media reported that two men were killed while repairing a water heater when the explosion took place. A women and boy were injured but were treated and released from a nearby hospital.

 

The cause of the explosion has not been determined. Anadarko, Colorado's largest oil and gas producer, said it is cooperating with investigators. The recently built home was located about 170 feet (52 m) from an old vertical well that was drilled in 1993 by a company Anadarko later acquired.

 

"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," Brad Holly, Anadarko's head of U.S. onshore production, said in the statement.

 

Reviewing the nearby 3,000 wells should take two to four weeks and none of them will re-open unless they pass additional inspections, the company said. The wells account for roughly 2 percent of Anadarko's daily oil and gas production.

 

Texas-based Anadarko is set to report quarterly earnings next Wednesday.


(Reporting by Ernest Scheyder; Editing by David Gregorio)