EOG to pursue North Park basin Niobrara oil

Feb. 29, 2008
EOG Resources plans to drill seven wells in 2008 and is shooting a 36 sq mile 3D seismic survey in a horizontal play for oil in Cretaceous Niobrara in Colorado's remote North Park basin.

By OGJ editors
HOUSTON, Feb. 29 -- EOG Resources Inc., Houston, plans to drill seven wells in 2008 and is shooting a 36 sq mile 3D seismic survey in a horizontal play for oil in Cretaceous Niobrara in Colorado's remote North Park basin.

EOG, which has amassed 100,000 net acres and drilled one well in Jackson County, estimated the Niobrara has a reserve potential of 10 to 80 million boe at an implied recovery efficiency of 1-5%. Nevertheless, the company said Feb. 29, the first well is very encouraging. Estimated oil in place is 10-40 million bbl/sq mile.

The company drilled the Buffalo Ditch 1-32H, in 32-7n-80w, 15 miles south-southwest of Walden, to 7,500 ft true vertical depth plus a 4,000-ft single lateral and applied a multistage frac in the fourth quarter of 2007.

Initial rate was 550 b/d of 38° gravity sweet crude with a GOR of 600 scf/bbl, and the well averaged 320 b/d in its first 30 days on production.

Preliminary estimated ultimate recovery is 250 million boe/well, compared with two vertical wells drilled by others within 3 miles that produced more than 100,000 bbl/well. Coalmont oil field lies just to the southwest.

On its acreage, which represents the majority of the play concept, EOG estimates the reservoir to be 90-450 ft thick with 3.5 to 6% average porosity, initial reservoir pressure of 3,700 psi, and temperature 210° F.

The company sees costs at $6 million/well on 640-acre spacing and plans to use a single rig. The basin has no oil pipeline, and the company sees no production impact until 2009.