Encana (ECA) disclosed an update on its activity in the Denver Julesburg basin, where the company is developing the Niobrara Shale. The company has 49,000 net prospective acres and estimates that it has 735 million barrels of oil equivalent (BOE) of petroleum in place here.
Encana said that the Niobrara on its acreage produces light oil along with associated natural gas and natural gas liquids. The company has an estimated 150 drilling locations and plans to operate two rigs here and drill 24 gross wells in 2012.
Encana reported that the average Niobrara well will cost $5.4 million to drill and complete and contain an estimated ultimate recovery (EUR) of 525,000 BOE per well. The average well will have a lateral length of 4,200 feet and a total vertical depth of 7,300 feet