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EOG pursues Denver basin fractured Niobrara

Alan Petzet
OGJ Chief Editor-Exploration

HOUSTON, Apr. 7 -- EOG Resources Inc. has built a position of 400,000 net acres in a horizontal play for oil and gas in Cretaceous Niobrara fractured shale in the Denver-Julesburg basin.

The company is running two rigs and plans to drill several exploratory wells in 2010. The targets lie in Wyoming north of Silo field, developed in Laramie County in the 1990s, and in Wyoming and Colorado south of Silo.

The leased acreage contains several areas with Niobrara potential, and other geologic objectives provide further upside, said EOG, which is still acquiring acreage.

The EOG Jake 2-01H, in 1-11n-63w, Weld County, Colo., about 20 miles south of the east edge of Silo field, produced 50,000 bbl of oil in its first 90 days on production in the third quarter of 2009, EOG said. Its maximum initial rate was 1,558 b/d of oil and 350 Mcfd of gas from a stimulated lateral in Niobrara.

EOG has drilled four other wells in the immediate area. Elmer 8-31H had a maximum stimulated rate of 730 b/d, and Red Poll 10-16H made 1,100 b/d unstimulated. Critter Creek 2-03H and 4-09H await completion.

Flow rates haven’t stabilized, and it is too early to estimate reserves, EOG said. It called the initial rates encouraging and said long-term performance is needed to understand the economics of the play.

The company estimated the cost of a completed well at $3.4 million and said it is testing several completion techniques.

Contact Alan Petzet at alanp@ogjonline.com.


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