Noble Energy (NBL) reported earnings for the second quarter of 2010 and discussed its activities in the Niobrara Shale during the quarterly conference call held on July 29, 2010. The company has two rigs operating and has drilled a dozen horizontal wells, most of which have a high liquids content.
“In our horizontal Niobrara program, we now have two rigs drilling in the central DJ basin, both currently in the Wattenberg field…So far we have drilled 10 horizontal Niobrara wells in Wattenberg and two in the Grover area about 20 miles northeast of Wattenberg.”
“Eight of the Wattenberg wells are now on production with two awaiting completion operations. As we continue to step out to the north and the eastern portions of the Wattenberg field, we're encouraged by the early flow back in liquid content of our new wells. Recent initial 24 hour rates have ranged from 580 to 845 barrels of oil equivalent per day with a 70% to 90% liquid content.”
“Starting in September, we expect to drill a few more wells closer to the Gemini area, around the core of the field and near existing vertical producers. The Gemini well has now produced over 100,000 barrels of oil equivalent in just four months, and is currently producing about 600 barrels of oil equivalent per day."
“In southern Wyoming, we are also bringing in an additional rig to drill three horizontal Niobrara wells starting in the third quarter. Overall, our horizontal Niobrara program is on target, with about 30 total wells drilled in the play by year end.”