Bill Barrett Corp., Denver, started gas sales in December 2008 from Pennsylvanian Gothic shale in the Paradox basin, where the company plans to run one rig in 2009.
Sales total 4 MMcfd of gas from three Gothic shale wells in Montezuma County, Colo. Field compression owned by a third party is expected to increase in February 2009, but high line pressure is presently inhibiting production rates.
The company is drilling its fourth horizontal well in the area. Barrett is operator with 55% working interest in the Yellow Jacket prospect.
The company reported a discovery in December 2008 when the Koskie horizontal well averaged 4.5 MMcfd of gas with 20 bbl/MMcf of condensate from Gothic on the last 10 days of a 17-day test. The Neely horizontal well flowed at the rate of 3.1 MMcfd on early tests after an eight-stage frac along its 3,655-ft lateral.
The company drilled 15H-27 Neely, a third horizontal well, in November to offset the Koskie well, and drilled a vertical well 9 miles north of Neely to obtain core and evaluate field extension.
The remote project area is 60 miles northwest of the San Juan basin and near the TransColorado and Northwest gas pipelines, with whom the company and its partner are working on long-term processing and transportation options.
Barrett said it holds 397,000 gross acres and 208,000 net undeveloped acres in the Yellow Jacket and Green Jacket prospect areas.
The company set production casing at its first horizontal well to slightly shallower Pennsylvanian Hovenweep shale on the 100% owned Green Jacket prospect, which extends into Utah. Gothic and Hovenweep are at 5,500-7,500 ft (OGJ, June 16, 2008, p. 39).