COLORADO EXPLORATION SLATED

Union Pacific Resources Co. (UPRC), Fort Worth, and Sinclair Oil Corp., Salt Lake City, have agreed to a joint venture to explore for oil and gas in the Las Animas arch province of Southeast Colorado. The first $16 million phase of the 3 year program calls for 50 exploratory wells to be drilled in Kit Carson, Kiowa, and Cheyenne counties. Each $325,000 well will be drilled vertically to Pennsylvanian Morrow or deeper during the next 15 months. The remaining 21 months covered by the agreement

April 29, 1991

The first $16 million phase of the 3 year program calls for 50 exploratory wells to be drilled in Kit Carson, Kiowa, and Cheyenne counties.

Each $325,000 well will be drilled vertically to Pennsylvanian Morrow or deeper during the next 15 months. The remaining 21 months covered by the agreement will be used to drill followup exploratory wells and develop discoveries.

The 50-50 agreement was effective Apr. 15, and the first well will spud in June.

Operator UPRC, which opened a production office in Cheyenne Wells, Colo., in third quarter 1990, will choose drillsites on its 100,000 acre arch area holdings.

UPRC drilled 73 wells in the Las Animas arch area in 1990 to establish gross production of 13,500 b/d of oil, 6,900 b/d net to UPRC. It currently has 152 gross wells in the arch area, or about 100 net wells.