Niobrara positive feel grows on cautious EOG

By OGJ editors
HOUSTON, Aug. 11
-- EOG Resources Inc. said its comfort level is rising slowly in the Niobrara shale oil play in the Denver basin as it awaits more well production history before formulating reserves estimates.

Whether the heavily fractured reservoir’s size will be very large or more moderate remains uncertain, EOG said.

Running four exploratory rigs on 100,000 of its 400,000 net acre position, EOG said its Crittter Creek 2-03H and 4-09H wells are producing at managed restricted rates of 570 and 600 b/d of oil after staged fracs in 5,500-ft laterals in Niobrara. EOG has 100% working interest.

Critter Creek, part of the company’s Hereford prospect, is southwest of the company’s Jake 2-01H discovery well, in 1-11n-63w, Weld County, Colo. (OGJ Online, Apr. 19, 2010).

The early Jake and Elmer wells have produced 150,000 bbl/well in their first 6 months on line and appear to be stabilizing at 150 b/d each.

Having drilled the first wells on 640-acre spacing, EOG has begun testing closer spacing. The company is monitoring the contribution to production from formation fractures vs. the matrix and believes the matrix is kicking in in some but not all wells. And it is still experimenting with stimulation methods.

EOG said it mapped the entire basin when deciding to establish the play. It avoided Silo itself, a sweet spot developed in Laramie County, Wyo., in the 1980s, because it appeared largely developed short of extension or infill potential. However, EOG does hold acreage north and south of Silo.

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