Niobrara and Codell Drilling Interest Spikes in Colorado’s Adams County

Colorado Oil and Gas Commission

Colorado Oil and Gas Commission

According to the September 2014 docket of the Colorado Oil and Gas Conservation Commission (COGCC) there are petitions to approve spacing units to drill up to 24 Niobrara and/or Codell wells in 640 and 1280 acre spacing units.  The companies petitioning for new spacing orders are Ward Petroleum Corporation and ConocoPhillips Company.

Slide showing Niobrara Land position from Conoco Phillips Feb 2013 Analyst Presentation – Click to Enlarge

Slide showing Niobrara Land position from Conoco Phillips Feb 2013 Analyst Presentation – Click to Enlarge

ConocoPhillips’s purchase of leases on the Lowry Bombing Range from the Colorado State Land Board is among some of highest prices ever paid for leases in the Niobrara Play.  Since the purchase of leases, ConocoPhillps has been conducting a meticulous  exploratory drill program operating one to two drilling rigs to determine the best way to drill the sweet spot they have identified.  The true potential of Conoco’s drill results have remained elusive to date, even with their required production reporting to the COGCC.

Ward_Petroluem_Corporation_LogoThe other activity in Adams county comes from Ward Petroleum Corporation (listed as one of the top 100 fastest growing American companies by Inc. magazine) which has recently entered this section of the Niobrara Play with requests for spacing orders to drill up to 12 wells in the Niobrara and Codell formations.

While most of the Niobrara drilling activity to date has been centered in the Wattenberg Field to the north, the petition for new orders to drill outside the Wattenberg in Adams County, is proof that the Niobrara Play has great potential outside of the Wattenberg Field.

Click here to view the September 2014 COGCC docket

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Refracking brings ‘vintage’ oil and gas wells to life

Horizontal Drilling Rig in Weld County Colorado - Credit Niobrara News

Horizontal Drilling Rig in Weld County Colorado – Credit Niobrara News

By Anna Driver and Ernest Scheyder - Reuters – Wed Aug 20, 2014

NORTH DAKOTA Aug 20 (Reuters) – A fracking boom isn’t enough for U.S. oil and gas producers – they’re now starting the re-fracking boom.

Wells sunk as little as three years ago are being fracked again, the latest innovation in the technology-driven shale oil revolution. Hydraulic fracturing, which has upended global energy markets by lifting U.S. crude oil output to a 25-year high, has been troubled by quick declines in oil and gas output.

The development highlights how producers must constantly invest and tinker, both to raise overall oil recovery rates that can be as low as 5 percent and to limit steep drops in production suffered by wells drilled into tight oil deposits. (Related: See Decline Curves of the Niobrara) Continue reading “Refracking brings ‘vintage’ oil and gas wells to life” »

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Petroleum Engineers are Tops in Geosciences Compensation

AGI Median Geosciences Salaries 2013 - Source: American Geosciences Institute

AGI Median Geosciences Salaries 2013 – Source: American Geosciences Institute

According to a survey from the American Geosciences Institute (AGI), Petroleum Engineers receive the highest median salary 0f $132K when compared to all other geoscience related disciplines.  For comparison, the median of all other professions was $35K.  Coming in at a close second were Engineering and Natural Science Managers at $128K and $117K respectively.

Download the AGI Geosciences Salary report

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Earthquake Study Shows Natural Quakes Outshake Man-Made Tremors

Drum recorders, like the ones pictured here, draw a seismogram on a piece of paper wrapped around a slowly revolving drum. - Image Source: USGS

Drum recorders, like the ones pictured here, draw a seismogram on a piece of paper wrapped around a slowly revolving drum. – Image Source: USGS

By TAMARA AUDI - Wall Street Journal - August 18,2014

When it comes to making earthquakes, Mother Nature still packs the most powerful punch, a new study says.

Quakes believed to be caused by human activity, such as those associated with oil and gas extraction, don’t produce as much shaking as naturally occurring temblors of similar magnitudes, according to research released Monday by Susan Hough, a seismologist with the U.S. Geological Survey.

Using data collected from the public following 11 moderate earthquakes between 2011 and 2013, Ms. Hough’s study says that shaking felt from so-called induced quakes is less intense for distances beyond 6 miles from the epicenter. But shaking at the epicenter was as intense as naturally occurring quakes. That means damage from an induced quake is likely to be more concentrated at its epicenter.

“It turns out there’s a big difference between these induced earthquakes and natural earthquakes,” Ms. Hough said.Compared with naturally occurring quakes, “these induced quakes are essentially wimpy in terms of the shaking they’re creating” farther from the event, Ms. Hough said.

It is unclear why the induced quakes seemed to weaken more quickly than natural quakes, Ms. Hough said. One possible reason such quakes may release less energy is that the fault involved ruptures before it reaches its natural breaking point, she said.

Continue reading story at The Wall Street Journal

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Long list of applicants delays decision on oil and gas task force

OilPumpBy Peter Marcus – Durango Herald – August 18, 2014

Picking the task force charged by Gov. John Hickenlooper to make recommendations on new gas and oil regulations has been delayed by an outpouring of interest.

La Plata County Commissioner Gwen Lachelt, a Democrat from Durango who has been appointed chairwoman of the task force, said Hickenlooper had hoped to make the announcement last week, but an avalanche of applications has delayed the process.

The hope is for an announcement on the membership this week.

“It’s proved to be a more difficult task because so many qualified folks applied,” Lachelt said.

The governor’s office said  about 175 names from across the state have been submitted for three categories: people directly affected by gas and oil activities, such as homeowners and local governments; gas and oil industry representatives; and civic leaders. The governor’s office will pick six people from each category

Continue reading story at The Denver Post

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Thousands of tank cars likely to be scrapped under new rules

A DOT-111 tank car, specification 111A100W1, constructed by fusion welding carbon steel. This car has a capacity of 30,110 US gallons (113,979 L; 25,071.8 imp gal), a test pressure of 100 psi (690 kPa), a tare weight of 65,000 pounds (29,500 kg) and a load limit of 198,000 pounds (89,800 kg). - Image Source: Wikepedia

A DOT-111 tank car, specification 111A100W1, constructed by fusion welding carbon steel. This car has a capacity of 30,110 US gallons (113,979 L; 25,071.8 imp gal), a test pressure of 100 psi (690 kPa), a tare weight of 65,000 pounds (29,500 kg) and a load limit of 198,000 pounds (89,800 kg). – Image Source: Wikipedia

By Bob Tita - Dow Jones Newswires – Aug 17, 2014

Thousands of tank cars will probably be scrapped or redeployed as a result of recently proposed federal regulations to make cars hauling flammable liquids safer and sturdier.

The loss of those cars could exacerbate the current shortage of rail cars needed to transport oil and extend the wait times for new cars beyond the current 2016 delivery dates. It could also make it more expensive to ship oil and other fuels at a time when crude-by-rail shipments have been soaring along with U.S. oil production.

Industry groups and car owners have 60 days to comment on the regulations proposed by the U.S. Department of Transportation last month and are discussing responses to what they consider are the most expensive or onerous provisions of the government’s proposals. Continue reading “Thousands of tank cars likely to be scrapped under new rules” »

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EOG Resources Hitting the Pay Zone in Wyoming DJ Basin

EOG Resources slide from August 2014 Investor Presentation showing Niobrara and Codell Results

EOG Resources slide from August 2014 Investor Presentation showing Niobrara and Codell Results

At their August 5th, 2014 investor presentation, EOG Resources announced drilling results from their Wyoming based DJ basin properties.  The company is targeting both the Codell and Niobrara formations in Wyoming’s DJ basin.

The company has 39 net wells in the Niobrara and Codell.  Their recent IPs from the Codell Formation ranges from 1100 bopd to a very impressive 1400 bopd.  The results are from 6 wells with 9000 ft. laterals.

EOG’s Niobrara wells also put in a impressive performance with IPs ranging from 670 bopd to 700 bopd from their 3600 ft. Niobrara laterals.

The wells exhibit a high oil to gas ration with company’s Niobrara wells averaging 71% oil, 19% NGLs, and 10% gas, and their Codell wells averaging 78% oil, 15% NGLs and 7% gas. The company’s Codell wells are averaging 78% oil, 15% NGLs, and 7% gas.

The company is will be experimenting with shorter 710 ft down spacings in both the Niobrara and Codell going forward.

 

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Kinder Morgan’s Buyout Deal Includes Niobrara Assets

Map showing Kinder Morgan Colorado Natural Gas Pipeline Assets

Map showing Kinder Morgan Colorado Natural Gas Pipeline Assets – Source: Kinder Morgan

In an article at FuelFix by Collin Ean – August 10, 2014,  Kinder Morgan to unite a house divided in $44 billion deal, it was reported that Houston-based Kinder Morgan said Sunday it is planning to buy out three companies it controls indirectly for $44 billion in cash and stock, bringing its network of North American pipelines and energy storage terminals under one corporate roof. It also will assume $27 billion in debt.

Taken together, the three purchases rank as the second-largest energy deal and 16th-largest acquisition overall in U.S. history, according to data compiled by Bloomberg. Continue reading “Kinder Morgan’s Buyout Deal Includes Niobrara Assets” »

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