By OGJ editors
HOUSTON, May 5 -- Whiting Petroleum Corp., Denver, said it could double production by 2010 from Flat Rock gas field in Uintah County, Utah, which it is buying from Chicago Energy Associates LLC for $365 million.
The transaction, to close by May 30 retroactive to Jan. 1, 2008, includes 115.2 bcfe of proved reserves, development acreage, and gathering facilities. The reserves are 78% proved undeveloped. Estimated net production is 19 MMcfe/d.
Whiting, which will operate 83% of the net daily production, said it would hike the field's net production 70% in 2009 and possibly double the current rate in 2010.
Flat Rock field was discovered in 1963. The acquisition includes interests in seven wells producing from the Jurassic Entrada sandstone at 11,500 ft and 24 wells producing from shallower Eocene Wasatch and Cretaceous Dakota formations. Entrada produces 97% of the net daily output.
Entrada has been found to have more than 100 ft of net pay in the area, and 49 sq miles of 3D seismic support a current plan of 59 more wells to more fully develop the Entrada on the 22,029 gross and 11,534 net acres included in the acquisition.
Whiting expects to operate 15 of the 59 wells, and another experienced area company will operate the others. The gathering assets include 44 miles of lines and compression and processing facilities that deliver the gas to the Questar Mainline 40 interstate pipeline.