Niobrara Shale

MDU Resources - Niobrara Shale Update

MDU Resources Group (MDU) has 65,000 net acres under lease that are prospective for the Niobrara Shale.  The acreage is located in Goshen and Laramie Counties in Wyoming, and the company estimates that it has 100 future drilling locations based on utilizing 640 acre spacing.

MDU Resources Group said that the acreage is leased with five year terms and five year renewal options.  The company plans to spend $13 million in capital in 2011 to develop this acreage, including two wells to test the Niobrara Shale during the second half of 2011.  If the well results are positive, MDU Resources Group will drill twelve horizontal Niobrara Shale wells in 2012.

MDU Resources Sells Stake In Niobrara Shale To Itochu Corp

MDU Resources (MDU) announced that the company has reached an agreement to sell 25% of its acreage position that is prospective for the Niobrara Shale in Wyoming. The company has 88,000 net acres under lease, and the acquisition price was not disclosed.

MDU Resources said that Fidelity Exploration & Production Company, the company’s exploration and production subsidiary, signed the agreement with JD Rockies Resources Limited, a U.S. subsidiary of Itochu Corporation. MDU Resources said that the first Niobrara Shale wells would be drilled in early 2011.

MDU Resources Comments On Niobrara Shale

MDU Resources held a conference call on August 3, 2010, to discuss earnings for the second quarter of 2010. The company made comments on its activities in the Niobrara Shale.

“We intend to continue building on our oil development with our recent acquisitions of 80,000 net acres in the emerging and exciting Niobrara play."

“In the emerging Niobrara oil play, we estimate 120 potential drilling sites on our acreage assuming 640-acre spacing. We plan to begin drilling our first test wells in this exploratory area in 2011.”

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