ConocoPhillips To Build Pipeline For New Niobrara Sweet Spot

ConocoPhillipsOn Wednesday, April 10th, 2013 ConocoPhillips held an open house and BBQ dinner at the Bennett, CO Community center for residents of nearby communities. The company was eager to answer questions about its accelerating oil operations on and around its Lowry Bombing Range properties. There were multiple stations attended by ConocoPhillips experts where residents could ask questions about Well Site Construction, Water, Transportation, Pipelines, and Safety. There was a large turnout by the community with a filled parking lot and hundreds of people in attendance.

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 starting in 2011, has amassed over 130,000 acres of leases on and around the Lowry Bombing Range in eastern Colorado. While the production figures are not yet released from the company’s initial exploratory wells drilled in 2012, the company’s plans to drill dozens of wells in 2013 (ConocoPhillips announces new Niobrara Sweet Spot and 2013 Drill Program) certainly indicates that ConocoPhillips has a sizable discovery on its hands.

Camera Snap of Poster Showing Proposed ConocoPhillps Pipeline Near Watkins, CO

Field Photo of Poster Showing Proposed ConocoPhillps Pipeline (Green) Near Watkins, CO

Further evidence of Conoco’s commitment to the area is its application to install significant oilfield infrastructure by building a pipeline to service it’s wells as they are drilled and completed. The proposed pipeline (see graphic) will use a right of way that is 75 feet wide and contain four ditches containing and 8 inch oil pipeline, a 12 to 14 inch natural gas pipeline, a 4 1/2 inch produced (waste) water pipeline and the fourth ditch containing fiber optic cable for oil field communications and control. The plans are for the natural gas pipeline to connect to Anadarko’s Watkins processing

Anadarko Natural Gas Processing Plant near Watkins, CO - Credit Google  Earth

Anadarko Natural Gas Processing Plant near Watkins, CO – Credit Google Earth

facility where the methane and NGLs will be separated.  The oil pipeline will connect to the Front Range Pipeline and/or possibly Suncor’s Commerce City Refinery. It has not been decided where the produced water pipeline will connect, however since its intention is to limit or eliminate waste water trucks in the area, the future plans have the waste water pipeline connecting to an Underground Injection Control (UIC) well where the water will be treated to state standards, and then injected. This significant pipeline infrastructure investment is feasible due to the company’s concentrated acreage position (see leasehold graphic above) in the Lowry Bombing Range area. As this area is developed, the pipeline infrastructure will expand to serve what is anticipated to be significant oil and gas production.

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2 Responses to ConocoPhillips To Build Pipeline For New Niobrara Sweet Spot

  1. RockPick says:

    Shnog,

    I would have to agree with your assessment based on what little info is a available from COP. I tried asking their Project Manager at the Bennett Open House some indicator questions on the amount of NG they were expecting (relative to Wattenberg) as that would dictate the size of pipeline they would build, but I got no answers. They would not release or hint at any info that was not already public. Since we are reading tea leaves here, I can only assume that their production will be of a high enough EUR to warrant the cost of an oilfield collection pipeline. I was told that the pipeline will be gravity assisted but that info does not help answer any questions. We will have to wait for more info from Investors Presentations or a COGCC records release to learn more.

    -RockPick

  2. shnog says:

    Rock-

    They are saying that the projected yields in this new “Sweet Spot” fall somewhere between the Bakken and Eagle Ford, but better than the core Wattenberg to the North.

    So if your average EUR in the Eagle Ford area was around 300,000 BOE and in the Bakken you are seeing EUR’s in the 500,000 BOE area, and recent results have been pointing to approx. 355MBOE EUR’s in the core Wattenberg, it wouldn’t surprise me to see results in the 450MBOE per well in this area given the clues put out by COP.

    What do you think?

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