Delta sizes up northern Paradox discoveries

March 12, 2007
Delta Petroleum Corp., Denver, is sizing up gas-condensate and oil discoveries in the northernmost Paradox basin in Grand County, Utah.

Delta Petroleum Corp., Denver, is sizing up gas-condensate and oil discoveries in the northernmost Paradox basin in Grand County, Utah.

The company hopes to ultimately recover 2 to 4 tcf of gas net to its 70% interest from Pennsylvanian Hermosa Group clastics in southwestern Grand County. It has drilled the Greentown-State 36-11 and 32-42 wells south of Green River, Utah. A pipeline Delta plans to build mainly on federal land to transport the gas could take a year to complete.

The 36-11 well is completed in 2 of 12 pay intervals. From the two completed intervals it production tested at a combined 4.5 MMcfd of gas and 125 b/d of condensate. The company estimated proved reserves at 2.7 bcfe from the two perforated zones. The other 10 intervals have similar log characteristics.

The well blew out for several days in 2006 during postfrac flowback after only one interval had been perforated.

The 32-42 well, 7.5 miles southeast, is completed in 8 of 12 pay intervals. It flowed a combined 2 MMcfd of gas and 500 b/d of condensate. Proved reserve estimate is 5.8 bcfe in the eight zones.

The wells have 906 and 1,077 ft of potentially productive clastics in the 12 intervals, respectively, and the company believes all of its 40,900 gross (28,600 net) acres to be prospective.

Delta plans to drill six to eight wells in 2007 to an average 9,800 ft at $3.0-3.5 million/well. One well will be a clastic prospect on a salt anticline analogous to Greentown.

Meanwhile, about 15 miles east in Grand County, Delta completed its 70% owned Salt Valley-State 25-12 well in 13 stages. It encountered 654 ft of net sand in 15 intervals. The well, expected to recover 200,000 bbl of light, sweet crude, is to go on pump in mid-March.

Delta holds 7,100 gross (5,000 net) acres, all of which it deems prospective. It will drill five to six wells in 2007 on 40-acre spacing. Wells are to average 8,200 ft and cost $2.5 million.

An undisclosed private company holds the other 30% interest in both prospects.