Barrett spudding Paradox basin shale well

By OGJ editors
HOUSTON, June 5 -- Bill Barrett Corp., Denver, was spudding in late May its next well in an emerging two-formation shale gas play in the Paradox basin of Colorado and Utah.

Targets are the Pennsylvanian Hovenweep shale and Gothic shale, at 5,500-7,500 ft respectively atop and below the Lower Ismay formation. Hovenweep covers 1,300 sq miles in the basin and Gothic 1,850 sq miles.

Barrett holds 55-100% operated working interest in 183,000 net undeveloped acres in its Yellow Jacket shale gas project. Thicknesses are 20-140 ft of Hovenweep and 80-150 ft of Gothic.

Three "science wells" drilled in 2007 produced at rates of a few hundred thousand cubic feet of gas per day and confirmed encouraging gas content and shale composition, the company said last week.

An underlying salt isolated by a hard layer of anhydrite was believed to be an effective frac barrier, but a frac job penetrated the salt which plugged surface equipment.

The company has a 3D seismic shoot under way to highgrade a location for a horizontal Gothic shale well later in 2008. It is to have a 3,000-ft lateral and will be stimulated with smaller jobs to avoid the salt layer.

In San Juan County, Utah, Barrett and partners plan to drill one well this year in its Green Jacket and Pine Ridge projects. Green Jacket targets Hovenweep shale, and Pine Ridge objectives are structural salt flank plays similar to those at Andy's Mesa and Double Eagle fields in San Miguel County, Colo. The Pine Ridge net holding is 30,000 undeveloped acres.

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