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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After years of talk, Cheyenne may be poised for a surge in oil production

WyomingLogoBy BENJAMIN STORROW Star-Tribune staff writer – August 10, 2014

CHEYENNE — On a recent afternoon, Alex Bowler sat in a coffee shop here and held up a copy of the local newspaper. On display were two full pages of legal announcements notifying the public of companies’ plans to drill oil wells in the area.

“No one reads this type of thing except idiots like me,” said Bowler, who heads a local landowners group. “But what’s going to happen is it’s going to show up and people are going to panic.” Continue reading “After years of talk, Cheyenne may be poised for a surge in oil production” »

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Judge strikes down another Colorado town’s ban on fracking

Hydraulic Fracturing Illustration - Idealized

Hydraulic Fracturing Illustration – Idealized

 - Reporter-Denver Business JournalAugust 7, 2014

A Larimer County district judge on Thursday struck down a voter-approved, 5-year moratorium on hydraulic fracturing, and the storage of waste produced by the technique, within the borders of Fort Collins.

Larimer County District Judge Gregory Lammons on Thursday ruled in favor of the summary judgment requested by theColorado Oil & Gas Association (COGA), which had sued the city of Fort Collins after voters approved a ban on fracking in November 2013. The judge also denied a request for summary judgment filed by the city.

Lammon’s ruling is here.

It’s the second time in two weeks that a judge has struck down a voter-approved ban on fracking.

Continue reading story at The Denver Business Journal

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WPX Energy Advancing Their Piceance Basin Niobrara Exploration Efforts

WPX Corporate LogoDuring their 2nd quarter 2014 conference call, WPX Energy reported on their earnings and exploration efforts.  With respect to the company’s Niobrara Shale efforts, WPX spud two wells in the first half of 2014 – a horizontal well and the company’s second vertical test well since late 2013.  Both wells are scheduled to begin completion operations in August.  The company has three other Niobrara horizontal wells and a vertical well on production. The horizontal discovery well has produced 2.7 billion cubic feet in cumulative gas volumes in just over 18 months.

Map showing location of Piceance Basin - Image Credit - Garfield County Colorado

Map showing location of Piceance Basin – Image Credit – Garfield County Colorado

During the conference call, CEO – Rick Muncrief said that WPX considers the Piceance Basin to be undervalued, and that the company will be starting completion operations in late August on their Niobrara wells.  WPX will be capitalizing on their vertical wells in the Niobrara and has completed some horizontal wells in an over pressured area that is operationally challenging.  WPX likes the pressure, likes the rock, and it’s a ” just a matter of being able to efficiently execute”.  WPX is considering longer laterals which could be a game changer for the prospect. The company considers its current handful of Niobrara completions to be sub-optimized and declined to make any projections on future well completions as the area is still in the exploration phase.

Slide Showing WPX Energy Piceance Basin Land Position

Slide Showing WPX Energy Piceance Basin Land Position (2014)

With regards to its Colorado acreage position, WPX sees an impact of less than 5% on their 12,475 drillable locations in the event of a 2000 ft. drilling setback was enacted. [via a constitutional amendment or new state regulation] [Regulations are currently 500 ft from fixed structrures, with 1000 ft setbacks for high density areas].

Listen to the entire WPX 2nd Quarter 2014 Conference Call

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Endeavour International Reports Commencement of Niobrara Drilling and Test in Piceance Basin

Endeavour_LogoEndeavour International Q2 2014 Results – Earnings Call Transcript – Seeking Alpha – Aug 5, 2014

Excerpt follows:

” Shifting to our Niobrara liquids rich play in Northwest Colorado, the company has two projects with leasehold and drilling options totaling more than 40,000 gross acres and more than 27,000 net acres. In our Wiley federal unit to the North, we’ve actually commenced drilling and initial horizontal test of our Niobrara target zone.

To the South in Oreo federal unit, we’re also finalizing plans for a horizontal well to be drilled later this fall. Other third-parties remain very active in the Piceance Niobrara play, where we feel we have strategically positioned ourselves with significant upside resource potential ”

Read the entire transcript at Seeking Alpha

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Oil and gas execs plan more public outreach, even without ballot battle

Picture of ConocoPhillips Drill Rig drilling in the Niobrara Play - Image Credit ConocoPhillps

Picture of ConocoPhillips Drill Rig drilling in the Niobrara Play – Image Credit ConocoPhillps

 - Reporter - Denver Business Journal

The massive effort to communicate the technicalities of the oil and gas industry to Colorado voters isn’t finished, despite the end of a looming campaign fight over ballot initiatives this fall, according to oil and gas executives.

A deal proposed Monday by Gov. John Hickenlooper and U.S. Rep. Jared Polis gives the industry and its opponents at least two years of breathing room on the issue before the 2016 election.

“I’m hoping that this big step back gives space to everyone involved,” said Fred Krupp, the president of Environmental Defense Fund, during a panel Tuesday at the Colorado Oil & Gas Association’s(COGA) annual Rocky Mountain Energy Summit conference taking place Tuesday through Thursday at the Colorado Convention Center

“It is bringing all the constituents together to find a solution to something we need to address — we need to address the issue of surface impacts and underground mineral rights, and we need to do it in a way that will earn the trust of those that we work around,” said Charles Davidson, the CEO and chairman of Noble Energy Inc., who also spoke during a panel Tuesday at COGA’s conference.

Continue reading story at The Denver Business Journal

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Fracking fight may be called off with last-minute deal

citylongmontBrandon Rittiman, KUSA - August 4, 2014

DENVER – Environmentalists and the governor’s office have crafted a last-minute deal that they hope will withdraw all proposed ballot initiatives to restrict fracking for the November election, potentially defusing a political time bomb that had driven a wedge between liberal and pro-business Democrats.

Not all necessary parties have agreed to make the agreement happen, however. Continue reading “Fracking fight may be called off with last-minute deal” »

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Don’t Be Fooled – NASA’s Front Range Ozone Test Is Really All About Oil

NASA_logo.svgThe headlines read: NASA airplanes fly low over Denver skyline and the Front Range testing ozone levels (Denver Post),  NASA, EPA, NCAR launch air-testing blitz to track pollution (Denver Post Environment) and Boulder researchers leading landmark Front Range air quality study (Daily Camera).

These articles give the reader the general impression that the study is on Denver’s ozone pollution due to traffic and normal industrial activity associated with cities.  To their credit, The Denver Post Environment article briefly mentions that “NASA picked Colorado for intensive testing (looking at benzene, ethane, methane, formaldehyde and more)”. Really? Continue reading “Don’t Be Fooled – NASA’s Front Range Ozone Test Is Really All About Oil” »

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