Niobrara Shale

Bill Barrett Corporation Closes On Niobrara Acquisition

Bill Barrett Corporation (BBG) reported the closing of an acquisition of properties in the Denver Julesburg Basin that are prospective for the Niobrara and several other formations.  The company paid $150 million for 28,000 net acres, 650 barrels of oil equivalent (BOE) per day of production and 7 million BOE of proved reserves.

Bill Barrett Corporation also holds 38,200 net acres in the Sagebrush area and 103,000 net acres within the Wind River Basin of Wyoming that is prospective for the Niobrara Shale.  The company drilled a horizontal exploration well into the Niobrara in the fourth quarter of 2010.  The well is currently undergoing completion operations that were delayed due to environmental considerations.

Bill Barrett Corporation Acquires Niobrara Acreage

Bill Barrett Corporation (BBG) reported that the company has signed an agreement to purchase leasehold in the Denver-Julesburg Basin that is prospective for the Niobrara formation.  The company said that the acreage is in the Hereford area near the Colorado and Wyoming border.

Bill Barrett Corporation will pay $150 million to Texas American Resources Company for 28,000 net acres.  The acreage has current net production of 650 barrels of oil equivalent (BOE) per day mostly from the Niobrara and Codell formations, and contains approximately seven million BOE of proved reserves net to the company.  

Bill Barrett Corporation will have 67,000 net acres of leasehold with exposure to the Niobrara formation and estimates that this transaction will increase capital expenditures by as much as $35 million in 2011.

Gulfport Energy - Niobrara Shale Summary

Gulfport Energy Corporation (GPOR) entered the Niobrara Shale through an acquisition in June 2010. The company purchased 24,468 net acres for $7.75 million.

Gulfport Energy said that the acquired acreage is located between the Piceance and Sandwash basins in Colorado in Moffat and Rio Blanco counties. The company acquired 0.9 million barrels of oil equivalent (BOE) of proved reserves, 23 gross proven undeveloped locations, and 3 gross producing wells. The 3 Niobrara Shale wells were producing 114 gross, or 45 net barrels of oil per day.

Gulfport Energy reported that the gross estimated ultimate recovery (EUR) per well ranges from 84,000 to 143,000 barrels of oil. The company said that these Niobrara Shale wells were drilled vertically and without the use of hydraulic fracturing.

Gulfport Energy plans to conduct a seismic survey on a 60 square mile section of its Niobrara Shale properties. The survey is currently being permitted and should begin in the spring of 2011.

Gulfport Energy has the acreage split among various prospect areas. These include the Meeker prospect, Juniper prospect, West Danforth prospect, Craig Dome prospect and Waddle Creek prospect.