Southwestern eyes first Niobrara wells in June
Southwestern Energy Co. is preparing to enter the Niobrara formation in Colorado after agreeing in March to purchase prospective acreage from Quicksilver Resources Inc. and Swepi LP, a subsidiary of Royal Dutch Shell PLC.
The company is set to pay $180 million for 312,000 net acres in the unconventional oil play.
Southwestern Chief Executive Officer Steve Mueller said the acreage covers an area in the Sand Wash basin that is more than 50 miles across and 20 miles wide.
"Basin characteristics include proven oil production with minimal water cut, preferred fluid-phase windows, demonstrated overpressure, evidence of matrix permeability and porosity from petrophysics, and well decline behavior, a thick, continuous reservoir with ample storage capacity and potential upside from downspacing and stacked reservoir benches," Mueller said.
The deal is expected to close in the second quarter. Southwestern could begin drilling operations as early as June 2014.
