Double Eagle updates Wyoming Niobrara, CBM work

Double Eagle Petroleum Co., Denver, and Warren Resources Inc., New York, the two major owners of the Spyglass Hill and Catalina units in the Atlantic Rim of the Washakie basin in Wyoming, have exercised preferential rights to acquire additional working interest in the units from a subsidiary of Anadarko Petroleum Corp.

Double Eagle is the operator of the Catalina Unit. A successor operator to Anadarko for the Spyglass Hill Unit has not been appointed.

Depending on the exercise, if any, of preferential rights to purchase the oil and gas assets by minority working interest owners in the units, the amount of working interests to be acquired by Double Eagle and the purchase price may change slightly.

Double Eagle plans to begin completion of its Niobrara appraisal well in the Catalina Unit in mid-October. The company is completing the well in two stages and plans to frac two zones in the lower Niobrara and three zones in the deeper Sage Break, Dakota, and Frontier gas formations in the first stage and three zones in the Upper Niobrara in the second stage.

The Spyglass Hill Unit requires 25 wells to be drilled before June 2013 to maintain the undeveloped acreage in that unit. The current timing of those wells will be determined once an operator is designated.

Double Eagle said it will evaluate the coalbed methane drilling programs at Atlantic Rim in 2013, depending upon its final working interest and operatorship of the Spyglass Hill Unit. Also, based on results of the Niobrara prospect well completion done in the fourth quarter of 2012 it may drill more Niobrara or deeper formation wells in 2013.

The company plans to continue to participate in developing its acreage in the Pinedale anticline and expects 16 more wells to be completed in 2013.

Double Eagle’s major oil company partner continues to proceed with the development plan and additional seismic shoot in 2013 for the Main Fork project, formerly Christmas Meadows, in Utah. The company is optimistic as to the progress of that 2 tcf target project.

Double Eagle is pursuing strategic mergers and asset acquisitions and is assessing all its nonoperated production and undeveloped acreage for opportunities for joint venture, pooling of interests, farmouts, or dispositions. In line with these objectives, the company has agreed to sell certain of its undeveloped Wyoming leases to a private company for $1.6 million or $2,100/acre. 

Prominent companies such as Noble Energy Inc., Encana Corp., Gulfport Energy Corp., and Occidental Petroleum Corp. are active in the Niobrara play close to Double Eagle acreage in the various Wyoming basins.

South of the Atlantic Rim Niobrara holdings in the Green River basin, Quicksilver Resources Inc. has formed a joint development venture with a subsidiary of Royal Dutch Shell to establish an area of mutual interest covering more than 850,000 acres in the Sand Wash basin in northwest Colorado.

In addition to the Niobrara, other formations in Wyoming such as the Sussex and Parkman are now being accessed with advanced horizontal drilling methods. Some of this activity is targeting known reservoirs, where older vertical wells may have left behind considerable quantities of oil. Double Eagle holds acreage near several of these newly developing plays and is closely monitoring permitting and drilling activities.

Related Articles

ConocoPhillips slashes 2015 capital budget

12/08/2014 ConocoPhillips has elected to reduce its 2015 capital budget to $13.5 billion, down 20% compared with this year’s budget. The news comes on the hee...

BHI: Shortened week sees 12-unit loss in US rig count

11/26/2014 The US drilling rig count fell 12 units to 1,917 rigs working as the country headed into the Thanksgiving holiday during the abbreviated week ended...

PwC: US oil, gas transaction value hits 10-year high in 3Q

10/29/2014 Driven by a rise in billion-dollar deals, midstream activity, and interest in upstream shale plays from foreign buyers, mergers and acquisitions in...

Williams Partners, Access Midstream Partners to merge

10/27/2014 Williams Partners LP and Access Midstream Partners LP, both owned by Williams Cos., Tulsa, have agreed to merge. Williams in June purchased the rem...

BHI: US drilling rig count drops 12 units to 1,918

10/17/2014

The US drilling rig count declined 12 units to settle at 1,918 rigs working during the week ended Oct. 17, Baker Hughes Inc. reported.

PwC: US shale deal activity jumps in second quarter

10/17/2014 Merger and acquisition activity in the US oil and gas industry jumped in the second quarter of 2014, and nearly half of total deal value was relate...

Meritage starts up gas plant to serve Powder River producers

10/09/2014 Meritage Midstream Services II LLC, Denver, has started up a natural gas processing plant in Campbell Country, Wyo., to handle production from the ...

EIA: US industrial gas demand to rise 4% in 2015

10/03/2014 Relatively low prices of natural gas have contributed to steady increases in US industrial gas consumption since 2009, especially as a feedstock fo...

Magellan launches Niobrara-to-Cushing crude line open season

09/24/2014 Magellan Midstream Partners LP has launched an open season to assess customer interest in transporting various grades of crude oil from the Niobrar...

White Papers

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Available Webcasts



The Future of US Refining

When Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

When Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST



On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected