Petroleum Development Corp., Bridgeport, W.Va., Tuesday said it has concluded two farmout deals which will allow it to drill and develop reserves on 57,000 acres in and adjacent to Grand Valley field in Garfield County, Colo.
PDC said with the acquisition, it now controls 60,500 acres in the gas-prone Piceance basin of western Colorado. Terms of the deal were not disclosed.
It said the main target is the Mesaverde at 6,500 ft to 10,000 ft. It drilled and completed six wells in the area in 2000. It plans to drill 18 more in the next 6 months.
One farmout was for 4,000 acres northeast of the 7,500-acre leasehold PDC acquired in late 1999. PDC can drill up to 30 wells on the acreage before June 20, 2003.
The second farmout was 53,000 acres north and west of Grand Valley field. PDC has a 2-year exclusive option to lease the acreage with the right to drill up to 10 test wells prior to exercising the lease option. The option expires November 2002.
PDC said it has a deal with a third party to sell 3,500 acres, on a 160-acre checkerboard pattern, of the Piceance leasehold it acquired in 1999.
The company plans to include wells drilled in the first quarter in its public drilling partnerships and will have a 20% interest. It may participate for a larger interest in subsequent wells.