Niobrara Shale

Continental Resources Issues Niobrara Shale Update

Continental Resources (CLR) held an analyst meeting on October 12, 2010, and released additional information on its activities in the Niobrara Shale. The company now has 73,000 net acres under lease in the play, with 72% of the acreage in Wyoming and the balance in Colorado.

Continental Resources estimates that the company has 228 net drilling locations assuming 320 acre spacing, with 53 million barrels oil equivalent (BOE) of potential reserves.

Continental Resources said that the company would drill the Newton 1-9H well into the Niobrara Shale in the fourth quarter of 2010. The Newton 1-9H well is located in Weld County, Colorado at the Pump House project area. Continental Resources has 14,400 net acres at this project area.

Carrizo Oil and Gas Issues Niobrara Shale Update

Carrizo Oil and Gas (CRZO) issued an update on its development activity in the Niobrara Shale in Colorado. The company has prepared a well pad in Weld County and contracted a rig with the intent of drilling a horizontal well sometime in the first two weeks in October 2010.

Carrizo Oil and Gas has committed to conducting seismic acquisition program on a 300 square mile area in the Niobrara Shale. Carrizo Oil and Gas has 58,000 net acres that are prospective for the Niobrara Shale. The company estimates that it can drill 91 wells on its acreage assuming 320 acre spacing.

Carrizo Oil and Gas estimates that each well has an estimated ultimate recovery of 250,000 barrels of oil equivalent (BOE), giving the company 22.7 million BOE of potential reserves.