Niobrara Shale

Noble Energy Reports On Niobrara Development Progress

Noble Energy (NBL) reported good progress on the development of the Niobrara and other formations in the Denver Julesburg basin during the second quarter of 2012.

Noble Energy reported net production of 24,000 barrels per day from its horizontal development program, up 33% sequentially from the previous quarter.  Total production from the basin in the quarter was 73,000 barrels of oil equivalent (BOE) per day, of which 57% was crude oil and liquids.

Noble Energy has put 38 Niobrara wells onto production in 2012 and expects the estimated ultimate recovery (EUR) of these wells to be 340,000 BOE, up from 315,000 BOE in 2011. The company is also testing 40 acre spacing and has reported success with extended lateral drilling and expects the original well in this program to have an EUR of 750,000 BOE.

Encana Updates Niobrara Operations

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

Anadarko Petroleum Updates Horizontal Niobrara Program In Wattenberg Field

Anadarko Petroleum (APC) updated investors on the company’s horizontal development of the Niobrara formation in Colorado.  The company is focused on the Wattenberg field in Colorado.

Anadarko Petroleum has eleven producing wells in the Niobrara or Codell formations and has disclosed the following operational data on its acreage:

Future drilling locations - 1,200 to 2,700
Estimated ultimate recoveries - 300,000 to 600,000 barrels of oil equivalent (BOE) per well
Net resources - 500 million to 1.5 billion BOE
Well cost range - $4.0 to $5.0 million initially
Liquids content – 70%

Anadarko Petroleum said that the eleven wells had initial production rates averaging 800 BOE per day.  The best well was the Dolph 27-1HZ, which produced 1,100 barrels of oil and 2.4 million cubic feet of natural gas per day, and had an estimated EUR of 600,000 BOE.

Anadarko Petroleum said that the company will accelerate drilling in the Wattenberg program in 2012 and operate seven rigs by the end of year.  The company estimates that it will drill 160 horizontal Niobrara wells in 2012, up from 40 in 2011.