The Western Anadarko Basin in Oklahoma has long been a cornerstone of U.S. oil and gas development. Over the years, it has experienced multiple cycles of boom and bust, most notably during the shale revolution of the early 2000s. During that period, companies like Chesapeake Energy, FourPoint Energy, Apache Corporation, and others aggressively developed the basin, targeting formations such as the Cleveland, Tonkawa, Marmaton, and Cherokee plays. While the momentum slowed in the late 2010s due to lower commodity prices and shifting capital priorities, recent years have seen a renewed wave of investment. Established players like Devon Energy, Mewbourne Oil Company, Crawley Petroleum, and Upland Exploration are now spearheading a resurgence, signaling a new era of growth and opportunity in the region with counties like Roger Mills, Ellis, Custer, Dewey, Caddo, Beckham, and possibly Washita set to reap the rewards.
A Look Back: The Shale Boom in the Western Anadarko Basin
The early 2000s saw a massive influx of capital into the Western Anadarko Basin. Chesapeake Energy, one of the pioneers of shale development, played a major role in unlocking the potential of the Cleveland and Tonkawa formations. The company drilled over 190 horizontal wells in the basin since 2012, helping to boost production and establish the region as a major contributor to U.S. oil and gas output.
FourPoint Energy, which later merged with LongPoint Minerals to form Sitio Royalties, also played a crucial role in the basin’s development. By acquiring assets from Chesapeake and other players, FourPoint Energy solidified itself as one of the largest privately held exploration and production (E&P) companies in the region.
Meanwhile, Apache Corporation focused on expanding its horizontal drilling footprint in the basin. Though Apache later shifted much of its focus to the Permian Basin, its past investments laid the groundwork for the continued viability of the Western Anadarko Basin’s oil and gas reserves.
However, by the late 2010s, capital discipline, shifting investor sentiment, and fluctuating commodity prices slowed activity in the Western Anadarko Basin. Many companies redirected their focus to the more profitable Permian and Delaware Basins, leaving the basin’s production levels to decline.
A New Era of Investment: Anadarko’s Resurgence
Fast forward to 2024, and the Western Anadarko Basin is seeing a renaissance. Oil and gas companies are once again recognizing the long-term potential of the region, particularly in light of higher oil prices, improved drilling efficiencies, and the increasing role of U.S. energy exports.
- Mewbourne Oil Company, one of the most active private drillers in the region, has significantly ramped up drilling operations in the Cleveland formation. In 2023, the company doubled its new well count from 11 to 21, an indicator of growing confidence in the play. Even more impressive, its well performance has improved dramatically, with 90-day cumulative volumes increasing by 44% compared to previous years.
- SandRidge Energy, which has historically been a major player in Oklahoma and Kansas, has expanded its footprint with a $144 million acquisition of assets in the Cherokee formation. This move strengthens its production base and underscores the company’s confidence in the basin’s future.
- Upland Exploration has been making significant investments in the Western Anadarko Basin, focusing on high-quality acreage and new drilling techniques to maximize production. The company has steadily increased its horizontal drilling activity, targeting formations such as the Cleveland and Tonkawa plays. Upland’s approach to leveraging advanced completion designs and optimizing well spacing has allowed it to achieve higher recovery rates, positioning it as a key player in the Western Anadarko Basin’s revival.
- Devon Energy, a company that has long been a dominant force in Oklahoma’s oil industry, has maintained a strong presence in the basin. While Devon has focused heavily on the Delaware Basin, it continues to operate strategically in Oklahoma, leveraging advanced drilling and completion techniques to optimize well performance. All eyes will be on Devon over the coming months with a few proposals in 14N-20W indicating the operator plans to test the viability of a third Cherokee well.
- Crawley Petroleum and Upland Exploration, two privately held firms, have also been expanding their drilling activity in the region. These companies are quietly acquiring and developing prime acreage, further contributing to the basin’s revitalization.
Why the Western Anadarko Basin is Thriving Again
Several factors are driving the renewed interest in the Western Anadarko Basin:
- Improved Well Economics – Operators are utilizing advanced horizontal drilling and completion techniques, allowing them to extend laterals, increase recovery rates, and lower production costs. This has significantly enhanced the basin’s economic viability, even compared to the Permian and Delaware basins.
- Higher Commodity Prices – With oil prices holding above $70 per barrel and strong demand for natural gas and NGLs, the economics of drilling in the Western Anadarko Basin have become more attractive.
- Strategic Location – The basin’s proximity to key pipeline infrastructure and refining hubs makes it an ideal region for sustained production growth.
- Diversification from Permian Competition – As land prices and drilling costs soar in the Permian Basin, more operators are looking to expand their portfolios into areas like the Western Anadarko Basin, where acreage is still relatively affordable.
- Advancements in Geology & Seismic Data – New exploration techniques and enhanced seismic imaging have helped unlock previously overlooked reserves, making the Western Anadarko Basin’s formations more attractive for horizontal development.
Looking Ahead: What’s Next for Anadarko?
With more companies ramping up their drilling programs, the Western Anadarko Basin is poised for continued expansion. Investors and industry analysts are watching closely to see whether this resurgence will lead to a long-term production boom, similar to the one seen in the shale revolution a decade ago.
Several key trends to watch include:
- Rig count increases – The number of active rigs in the basin will be a key indicator of growth.
- New partnerships and acquisitions – M&A activity in the region could signal further consolidation and investment.
- Advancements in well performance – If new wells continue to outperform previous drilling programs, the basin’s revival could accelerate.
While challenges remain—including regulatory hurdles, environmental concerns, and capital constraints—the momentum behind the Western Anadarko Basin’s resurgence is undeniable. The legacy of past exploration efforts, combined with modern drilling efficiencies and favorable market conditions, is setting the stage for the basin’s next great era of oil and gas production.
For companies like Devon, Mewbourne, Crawley, and Upland Exploration, the Western Anadarko Basin represents a strategic growth opportunity—one that could define the next chapter in Oklahoma’s energy future.
