Niobrara Shale

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

Rex Energy Updates Niobrara Shale Operations

Rex Energy (REXX) issued an operations update on its oil and gas exploration and development activities in various domestic basins, and provided information on its Niobrara Shale properties.

Rex Energy was completing the Silo State 41-22 when it encountered problems with the tubing string, causing a ten-day delay in completion.  The company has recovered 20% of the fracturing fluid and noted “increasing oil cuts.”  Rex Energy expects to release initial production rate data on this Niobrara Shale well sometime in November 2010. 

Rex Energy reported that the company has reached total depth on the Herrington Farms 1H well, the company’s second well into the Niobrara Shale, and will start completion operations here in November 2010.

Rex Energy has permits to drill four other Niobrara Shale wells and expects to spud the BJB #1H well before the end of 2010.

QEP Resources Comments On Niobrara Shale

QEP Resources (QEP) held a conference call in conjunction with the release of third quarter of 2010 earnings.  The company made several comments on its activities in the Niobrara Shale where the company has built up an 84,000 net acre position.

QEP Resources has finished drilling the Borie 16-4H well, its first horizontal test well into the Niobrara Shale.  The company expects results to be announced sometime in early 2011.

“Turning to the exploratory front and I’ll put quotes around exploratory, QEP has now drilled and cased our first Niobrara Shale test on what has become an 84,000 net acre leasehold position in the Wyoming portion of the Denver Julesburg Basin.”

“So we’ve increased our acreage position since our last call in the play. Our Borie 16-4H well is a horizontal test. It’s targeting the chalk zones in the Niobrara Shale formation, which as you is the source rock with its full of oil, on a large anticlinal fold on the western part of the basin.”

“The well is located about 10 miles west of Cheyenne, Wyoming, right along Interstate 80. We drilled the well to a total depth of 14,200 feet and the lateral length, the lateral in zone is roughly 5,200 feet. We plan to complete this well with up to a 20-stage fracture stimulation, so a similar design to a Bakken stimulation.”

“Given the timing of the completion of the well, we won’t be in a position to discus results until at the earliest our fourth quarter year-end call in February.”

“So we want to see the well results from this play, from the Borie prospect. If the Borie prospect turns out to be commercial, then we could move into the development of that particular prospect fairly quickly.’

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