Devon Energy (DVN) reported on its operations in the Powder River and Denver Julesburg Basins during the second quarter of 2011, where the company is developing the Niobrara formation.
Devon Energy is currently drilling the company’s first horizontal wells in these basins. In 2011, the company plans to drill six Niobrara wells into the Powder River Basin and four into the Denver Julesburg Basin.
Devon Energy made some comments during the second quarter of 2011 conference call on the Niobrara in the Powder River and Denver Julesburg Basins:
“The ability of the reservoir to be fractured is probably the biggest risk that exists up in the Powder River Basin, and as we and others drill more, we'll learn more about that. But we think overall it will work, but that's probably the biggest risk that sits out there.”
“In the Denver Julesburg Basin, you probably have a little bit more chalk in those, which would give you greater confidence that the Niobrara’s going to be brittle and will fracture easier, so we think that's certainly a positive.”