Two major operators, Anadarko Petroleum Corp. and Noble Energy, plan to accelerate Niobrara exploration in the Wattenberg Field in the Denver-Julesburg Basin.
Within two years, Noble will double the number of rigs working the field, where it has 58 horizontals wells producing 14,000 BOED. The company anticipates doubling its net production in the DJ Basin which is 67,000 BOEPD on its leases, which cover 840,000 net acres.
Because of the success of the Niobrara, Noble is increasing capital spending. “Strong returns continue to improve with recent production performance exceeding previous results,” said Charles D. Davidson, chairman and CEO.
“Based upon the early results of Anadarko’s program in the Wattenberg Field, we are confident the liquids-rich horizontal Niobrara and Codell opportunity provides a net resource potential of 500 million to 1.5 billion BOE,” said Chuck Meloy, senior vice president of worldwide operations.
Anadarko estimates it has between 1,200 and 2,700 future drilling locations with expected ultimate recovery per well ranging from 300,000 to 600,000 BOE.
With current drilling costs ranging from $4 million to $5 million per well, initial production rates are averaging 800 BOEPD. Its Dolph 27-1HZ well had an IP of 1,103 BOPD and 2,416 Mcf of gas per day, and the company said it paid out in less than four months.
“We expect the alignment of our assets, coupled with future investments in expansion opportunities, will continue to enhance field recoveries, access to premium markets, and robust margins,” Meloy said.
Current production is at 70,000 BOEPD, and the company has leases on 350,000 net acres. It operates 5,200 wells now, and plans to drill 160 new Niobrara wells in 2012, compared to 40 in 2011.
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