developing unconventional oil conference, page-4

Slow old day,lol

again no mention of SSN here but this is a new piece. It seems the word NIOBRARA is on a lot of people's, coy's lips.



http://stocks.investopedia.com/stock-analysis/2010/Niobrara-Formation-Gaining-Momentum-EOG-CHK-MDU-SM-CRZO0518.aspx?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+StockAdvice+%28Investopedia+Stock+Analysis%29


Niobrara Formation Gaining Momentum
Posted: May 18, 2010 09:24 AM by Eric Fox





The Niobrara play in Colorado and Wyoming is one of the newer and less-known unconventional resource plays in North America. However, given the amount of attention being directed toward the area, investors should get used to hearing about this emerging oil play, which is part of the industry's attempt to increase development of oil and liquids at the expense of more natural gas development.

First Movers


EOG Resources (NYSE:EOG) brought the Niobrara play into the mainstream after disclosing a major position at the company's recent analyst meeting. EOG Resources has 400,000 net acres in the play, but hasn't disclosed any further details on its activities.
EOG Resources has drilled five horizontal wells into the Niobrara, and has disclosed results on three of the wells. The Critter Creek 2-03H and 4-09H wells are waiting on completion, and may be disclosed soon by the company.


MDU Resources (NYSE:MDU) is continuing to acquire acreage and now has 80,000 net acres in the Niobrara play. The company has not disclosed too much on its acreage so far due to the competitive leasing situation in the area, only that the company's leases are five years with options to extend.
Although MDU Resources has assembled a large position exposed to the Niobrara, the company will spend most of 2010 studying its acreage, with drilling expected to start in 2011. MDU Resources believes that the company has 120 drilling locations on its current position.



Big Names


Chesapeake Energy (NYSE:CHK) is also active in the Niobrara, and lists the formation as part of its Big 12 oil and liquids areas, a 1.9 million acre horde of future development properties. Chesapeake Energy doesn't break out its acreage separately for the Niobrara, and has the formation listed in its marketing materials under the category Rocky Mountain unconventional liquids plays.
The company has a combined 400,000 net acres in the Niobrara and Frontier plays, another oil and liquids area that the company is looking at in the Rocky Mountains.



St. Mary Land and Exploration (NYSE:SM) has 25,000 net acres in the Niobrara, and just spud the Atlas 1-19H, the company's first horizontal well. The Atlas 1-19H is in Laramie County, Wyoming, and is south of the Silo Field. St. Mary Land and Exploration disclosed that the Niobrara here is naturally fractured, and during drilling produced approximately 13,000 barrels of oil. The company has started hydraulic fracturing of the well, which should be complete some time in May 2010.


Other Players


Other companies involved in the Niobrara include Carrizo Oil and Gas (Nasdaq:CRZO), which has established a position of 46,000 net acres in Weld County, Colorado, and will begin drilling in the third quarter of 2010. Anadarko Petroleum (NYSE:APC), has 500,000 net acres, and Noble Energy (NYSE:NBL), which is drilling several horizontal wells in 2010 to test the potential of the play.
Bottom Line
The pursuit of the Niobrara oil play continues, but the development is at such an early stage that no exploration and production company can discuss production or reserves or any potential. Investors can only hope that the industry will repeat the same success here that it has had in other unconventional resource basins.