Niobrara Shale

Carrizo Oil and Gas Reports On Six Niobrara Shale Wells

Carrizo Oil and Gas (CRZO) reported on recent activity in Weld County, Colorado, where the company has 61,658 net acres prospective for the Niobrara Shale. 

Carrizo Oil and Gas has drilled six horizontal Niobrara Shale wells, put five wells onto production and expects to complete the sixth well shortly.

• Orlando Hill 26-44-8-61 well reached a peak 24 hour production rate of 650 barrels of oil per day. 
• Nelson 17-44-9-60 well is “on production at an increasing oil cut.”
• Wickstrom 7-11-5-60 has been drilled to total depth and is waiting on completion.
•  Carrizo State 16-11-9-60 tested at 690 barrels of oil per day. 
• Carrizo State 36-24-9-61 tested at 681 barrels of oil per day.
• Carrizo Bob White #1 tests at 725 barrels of oil per day.

Carrizo Oil and Gas has allocated $35 million in capital for the Niobrara Shale in 2012.

EOG Resources Updates Niobrara Operations

EOG Resources (EOG) has expanded the company’s Niobrara development program to areas outside of the Hereford Ranch Field during the second quarter of 2011.  The company has an 80,000 net acre position here in Weld County, Colorado.

EOG Resources reported that the Fiscus Mesa 9-10H well into the Niobrara was drilled and completed and put onto production at a restricted rate of 335 barrels of oil per day, along with 174,000 cubic feet per day of natural gas.  

EOG Resources also reported the Gravel Draw 9-09H well at a restricted rate of 277 barrels of oil per day, along with 146,000 cubic feet per day of natural gas.

EOG Resources estimates that it has proved up approximately 169,000 of the company’s 220,000 net acre position in the Niobrara Shale.  The company believes that Niobrara wells will be “characterized by lower initial flow rates, but flatter decline curves than other crude oil resource plays.”

EOG Resources also updated production numbers for the Jake 2-01H and Elmer 8-31H Niobrara wells, which were the company’s first two wells into this formation.

Jake 2-01H – production rate of 645 barrels of oil per day during the first thirty days, and 250 to 300 barrels of oil per day in 2011 to date.

Elmer 8-31H - production rate of 283 barrels of oil per day during the first thirty days, and current production of 225 barrels of oil per day.

Rex Energy Updates Niobrara Operations For Second Quarter Of 2011

Rex Energy (REXX) reported that during the second quarter of 2011, the company is conducting hydraulic fracturing operations on the Steege 1-33H well drilled into the Niobrara Shale.  The company expects to conduct similar operation on the Shapley 14-25 well in the third quarter of 2011.  This well is also targeting the Niobrara Shale.

Rex Energy has drilled five horizontal wells to the Niobrara Shale and has been tinkering with its drilling and completion techniques.  During the second quarter of 2011 conference call, the company disclosed a number of changes used for the Steege 1-33H well.

“We changed the orientation of the lateral on the Steege 1-33H well, changed the liner to plug and perf, and utilized a low pH fluid system for the fracturing. As we have previously mentioned, we want to have a 60-day-plus production history on these wells before we release results so we can have a higher degree of confidence on the decline curves and EURs.”

Rex Energy has 39,000 net acres in the Denver Julesberg Basin that is prospective for the Niobrara.  The company expects well costs to be in a range from $3.5 million to $4.2 million.