niobrara have we done enough, page-29

An interesting summary of latest developments in the niobrara. The update was December 2010. I couldn't copy the link so here is the whole part relating to the Rockies:


December 2010 - IHS U

U.S. Highlights
Rocky Mountain Region:

The Niobrara oil play taking shape in the northern Denver-Julesburg Basin just got more interesting with the report of a second high-volume producer on the Wyoming side of the play.
Richardson, Texas independent Simray Production Co LP recently completed a horizontal wildcat about six miles east of Cheyenne, Wyoming, initially flowing (after cleaning up) 831 bbls of oil and 205,000 cu ft of gas per day. The 15-65-36-1H State, 36-15n-65w, southern Laramie County, is producing from a 5298-ft horizontal lateral in Niobrara following fracture stimulation in 20 stages, according to PetroQuest Energy Inc, a Lafayette, Louisiana-based working interest holder in the well. PetroQuest reported the discovery as the Nevis #2.
Through the first two weeks of production, the discovery has averaged approximately 570 bbls of oil per day and is currently flowing 407 bbls of oil daily, said PetroQuest, which added that the discovery cost about $4.5 million to drill and complete. Simray drilled the discovery southeastward to a measured total depth of about 13,700 ft at a bottom-hole location in se se of the same section. Seven-inch casing was set to about 8500 ft and a pre-perforated production liner was placed in the lateral to total depth.
The Simray/PetroQuest discovery is within three miles southeast of a high-volume horizontal Niobrara producer completed this summer on the southern flank of Silo field. The latter wellSM Energy Co's 1-19H Atlas in 19-15n-64wflowed at a seven-day initial production average of 1,075 bbls of oil equivalent (BOE) per day. It was producing approximately 500 bbls of oil daily as of July 27, according to SM, which noted that the well was drilled to a measured total depth of about 12,000 ft. Production is from an approximate 4000-ft horizontal lateral in Niobrara, following a multi-stage hydraulic fracture treatment.
Two months ago, oil sprayed and covered some 15 acres of ranch land after the 1-19H Atlas experienced a treater TRV failure, not a well blowout, according to the Wyoming Department of Environmental Quality. A sudden surge of oil under pressure overwhelmed the well's system and sprayed from a flare stack onto the surrounding ranch land. The oil spray was reported to the state agency on October 14 and has since been contained and cleaned up. PetroQuest holds a 25-percent non-operated working interest in about 20,000 gross acres (5,000 net acres) in the southeastern Wyoming portion of the Niobrara play. Based on the results of the 15-65-36-1H State (Nevis #2), the company expects to participate in 12-15 gross wells next year.
On the Colorado side of the Niobrara play, EOG Resources Inc completed five more horizontal Niobrara producers in the new Hereford field area opened last year by the company's Jake discovery approximately nine miles northwest of Grover in northwestern Weld County.
The new producers, all in township 11n-63w initially produced at rates up to 299 bbls of oil daily. Production is from fract one-section laterals in Niobrara.
They are within four and a half miles west, southwest and south of the discovery that kicked off national interest in the Niobrara playEOG's 2-01H Jake in se nw 1-11n-63w. The Jake was completed late last year flowing 1,558 bbls of oil per day and produced 14,156 bbls of oil and 2,943,000 cu ft of gas in eight days during October 2009. It subsequently was choked back to a rate of 247 bbls of oil, 174,000 cu ft of gas and 175 bbls of water daily. Production is from a fract horizontal Niobrara interval at 7591-11,185 ft.
There are now 10 EOG-operated horizontal Niobrara producers in the new Hereford field. Earlier this year, the Colorado Oil and Gas Conservation Commission granted EOG an order approving 58 approximate 640-acre horizontal Niobrara drilling and spacing units in the Jake/Hereford area, townships 11-12n, ranges 62-63w in northwestern Weld County.
The Niobrara play also was the impetus behind the high bids at the November Colorado state lease sale. It drew high bids totaling $4,761,265.30 for 60 tracts covering 32,513.54 acres, an average of $146.43 an acre.
The sale's top per-acre bid of $2,200.00 was made by Colleyville, Texas-based Front Range Development Co for a 320-acre lease covering the s/2 of section 16-6s-65w, northeastern Douglas County, two and a half miles east of Parker. It's on the southwestern flank of the Denver-Julesburg Basin within one mile southwest of the abandoned Coachman field discovery a D sand producer. Overall, Front Range paid $1,471,675.00 in bonus for four tracts comprising 2,239 acres on the Douglas/Elbert County line, an average of $657.29 an acre.
At the November Wyoming state lease sale, Colleyville, Texas-based Big Horn Development was one of the most successful bidders. It acquired 21 parcels in the Niobrara play's Goshen and Platte counties for $13.7 million. Big Horn is located at the same address as Front Range.
The second highest per-acre bid at the latest Colorado lease sale was $1,175.00, which was made by Williston, North Dakota-based Diamond Resources Co for a 320-acre lease taking in the n/2 of section 16-9n-61w, Weld County, eight miles south of Grover.
Just north of the Diamond Resources lease, Continental Resources Inc has plans to drill the first Niobrara well permitted for 1,280-acre spacing in the Colorado portion of the Niobrara playthe 1-9H Newton in section 9-9n-61w. Continental added that it intends to drill a two-section lateral at the well, similar to the well design approach it is using in the North Dakota Bakken shale play. It's some 16 miles southeast of EOG's Niobrara producers in Hereford field.
Continental's Newton venture is in the company's Pump House project, which comprises 14,400 net acres in Weld County townships 7-9n, ranges 60-62w. Continental noted in a recent presentation that it was acquiring 80 miles of 3-D seismic in the area.
Continental is in the process of permitting additional Niobrara wells in northern Colorado and southern Wyoming. "If the results of the 1-9H Newton go as planned, we expect to spud additional Niobrara wells early in the second quarter next year," said Harold Hamm, Continental's chairman and CEO.
Continental has 73,009 net acres leased in the Niobrara play, with 23-percent of that acreage in northeastern Colorado's Weld County, and 72 percent of that acreage in southeastern Wyoming's Platte, Laramie and Goshen counties. The company reported is has 228 net potential locations (assuming 320-acre spacing) in the Niobrara play with 53 million bbls of oil equivalent in potential net reserves (unrisked). It also noted that a horizontal Niobrara well would cost $6.2 million to drill and complete under 1,280-acre spacing, and $4.2 million to drill and complete under 640-acre spacing.