Questar units, Ute tribe sign gas agreements

By OGJ editors

HOUSTON, May 15 -- Two Questar Corp. subsidiaries have signed agreements with the Ute Indian tribe for gas projects on tribal lands in the Uinta basin of northeastern Utah.

Questar Exploration & Production Co. signed an exploration and development agreement on a large block in the Wolf Flat area.

The agreement covers 12,557 acres adjacent to Quester's recently completed Flat Rock 9P-36-14-19 well. Drilled to 12,453 ft TD late last year, the well is producing about 5 MMcfd of gas from multiple pay zones in the Entrada, Morrison, Cedar Mountain, and Dakota formations. Additional intervals remain isolated beneath a drillable composite frac plug. Questar has a 100% working interest in the well.

The new agreement commits Questar to drill one well this year and shoot a 2D seismic survey. Questar has a continuous option to drill additional wells to earn mineral-development leases on tribal lands. The Ute tribe has the right to working interests up to 50% in the wells.

Separately, Questar Gas Management Co. signed a letter of intent to form a joint venture to construct, own, and operate a gas gathering system serving the Wolf Flat and other areas in the basin.

The system will connect to interstate pipelines operated by Questar, Northwest Pipeline, and Colorado Interstate Gas.

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