August 13, 2010: Officials announced
today that they plan to issue 6,500 permits to drill in the Piceance Basin located in northwest Colorado this year.
“We continue to have a pretty consistent high level of activity at this point,” Thom Kerr, permitting manager
for the Colorado Oil and Gas Conservation Commission, said during a meeting of the commission.
2010: The Federal Energy Regulatory Commission approved construction of the Ruby Pipeline, which will give Piceance
Basin energy companies access to West Coast markets. The pipeline was licensed in April and began construction in various
areas on Saturday, July 31. The pipeline will carry an approximate 1.5 billion cubic feet of natural gas per day, running
from Opal, Wyoming to Main, Oregon.
Companies drilling in the Piceance
Basin - Piceance Basin Stocks
Exxon Mobil XOM - The Piceance program
has been progressing very well. We did see a nice ramp-up in volumes in the second quarter compared to the first quarter.
In fact, we were at about 170 Mcf a day in Piceance.
And so that's progressing nicely.
Encana ECA - We've had some excellent results so far this year in the Piceance Basin. Second quarter 2010 average production
was 470 MMcfe/d, about 29% higher than at this time last year. Our capacity reduced production from 2009 came back online
better than expected, and many of the Piceance wells that we've recently completed are performing above expectations. As a
result, we have increased our 2010 average production guidance by 40 MMcfe/d.
Delta Petroleum DPTR - Delta DPTR has been drilling for natural gas in Colorado. This definitely allows for
the idea that our Piceance properties hold well in excess of 2 trillion cubic feet equivalent of reserve potential with a
corresponding opportunity to experience substantial annual reserve growth through our increased drilling activities.
I’ll also go ahead and address a couple of comments that we saw this morning related to production growth at the Piceance
Basin. The number that we have in there today is 44 million cubic feet equivalent which is a net number for the Piceance Basin.
The gross number related to that interest is approximately 55 million cubic feet a day net.
Williams Companies WMB - The Piceance Basin, where
our production is over 600 million a day, is a world class resource, as good as any of the Shale plays. We are committed to
going forward in a very disciplined manner, and a strong growth outlook, and we expect 2012 recurring adjusted earnings per
share to exceed our record 2008 results. We believe that the Piceance is competitive with the best of the Shale plays.
Bill Barrett Corp BBG - Piceance Basin, Colorado
Piceance Basin, Colorado
Gibson Gulch –
Current net production is approximately 136 MMcfe/d. In March 2012, the Company modified its
full year capital program to reduce drilling at Gibson Gulch from three rigs to two rigs. The Gibson Gulch program serves
as a "swing area" for the Company as it can substantially modify the drilling program in conjunction with broader
capital plans and commodity prices. Gibson Gulch natural gas production is processed, at the election of the Company, exposing
the Company to NGL pricing. The incremental benefit to production revenues related to natural gas liquids was $1.14
per Mcfe to the Company-wide realized price in the first quarter of 2012. Gibson Gulch operations offer strong margins due
both to low operating costs and the currently higher revenues related to liquids. The program continues to be a key, lower
risk development area for the Company.
At March 31, 2012, the Company had an approximate
99% working interest in production from 864 gross wells in its Gibson Gulch program.
PDC Energy PETD - PDC Energy PETD Piceance Basin - As part of the expanded capital budget, the Piceance drilling program has been increased
from 12 to 17 wells. These additional five wells are being drilled in order to obtain further reserve and production data
on the Company's SuperFrac completion pilot program initiated in late 2010. Early results from these completions are encouraging.
PDC plans to release the drilling rig after drilling the five additional wells and spend the remainder of the year testing
the SuperFrac completions. The Company's plan is to return to drilling in mid-year 2012.
Trimble, President and Chief Executive Officer, stated, "We are extremely pleased with the recent results from our key
operating areas and are particularly excited that our horizontal Niobrara inventory continues to expand. These combined factors
led us to increase our 2011 capital budget, and places the Company in a solid position to execute on our production growth
plans for the remainder of 2011 and into 2012."
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