Colorado
Tipperary Corp., Denver, said extensive development drilling could occur for gas in the Cretaceous Almond formation in Moffat County.
The Elm Ridge Resources, Dallas, and Tipperary 1-34 Ninemile Federal well averaged 2 MMcfd of gas, 100 b/d of condensate, and 250 b/d of water from Almond at 10,200 ft. Sales discussions have started.
Tipperary assembled 35,000 acres and later sold a 60% interest to Elm Ridge. Of the 35,000 acres, 12,000 acres are subject to a farmout from Western Gas Resources Inc., which retained a 30% interest.
Under continuous drilling provisions of the farmout, Tipperary earns a 28% working interest in each earning well and its eight adjoining 160-acre drillsites on the farmout. Once acreage is earned, each party pays its proportionate share of costs. More Almond wells will spud soon.
The Ninemile prospect acreage is just northwest of Tipperary's 65,000-acre Lay Creek coalbed methane project, in the early dewatering stage.
Texas: West
Nuevo Energy Co., Houston, acquired private Athanor Resources Inc., Fort Worth, whose main asset is 100 bcfe (97% gas) of reserves in Pakenham field where Nuevo sees attractive development and exploration potential.
Consideration was $62 million in cash, assumption of $20 million in debt to be repaid shortly, and 2 million Nuevo shares to Yorktown Energy Partners, which provided Athanor's main funding.
Pakenham field, which establishes a new core area for Nuevo in the Val Verde basin in Terrell County, yields 20 MMcfed from 140 wells. The field produces from Wolfcamp, Thrusted Wolfcamp, and Strawn, with about 80% of production from shallow Wolfcamp.
Planned outlays are $15 million/ year for 3 years with 10 Wolfcamp exploitation wells likely in 2003. A fieldwide 3D seismic dataset is in hand.
Pakenham is on trend with Brown-Bassett and three other large Ellenburger fields and has a well that sustained 27 MMcfd of gas, 30% methane with high carbon dioxide content, from that zone.
