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OILROCKYJOURNALMOUNTAIN ESTABLISHED IN 1921 AS THE MONTANA OIL JOURNAL • PUBLISHED WEEKLY Oil & Gas News From the Mountains and Great Plains Volume 94, No. 15 April 11, 2014–April 17, 2014 20 Pages $10.00 ISSN 1074-6803 Gas & Crude Oil Prices INSIDE: ROCKY MOUNTAIN REGIONAL WELL INFORMATION, PAGES 13-19 Effective Date: April 09, 2014 Price/bbl, SWEPI Repermits Washakie Basin Horizontal Wildcat AREA API ($) West Texas Intermediate ........................ 100.22 Sweetwater County, Wyoming Central Montana..................................... 89.72 Northwest Montana Sour....................... 83.75 hell Western Exploration and Production (SWEPI) has reper- Williston Basin Sweet ............................. 90.19 Smitted their second horizontal Tertiary test in Wyoming’s Williston Basin Sour ............................... 85.58 Washakie Basin. Spotting some 9 miles north of the Colorado bor- Wyo. General Sour.................................. 72.00 Wyoming Sweet (Powder Rvr Bsn) ....... 90.60 der and roughly 60 miles southwest of Rawlins, Wyo., SWEPI has Colorado D-J Basin................................. 87.30 surveyed in location for the Moonstone Unit #1H, sw-se 15-14n- Four Corners ........................................... 98.73 98w. This lateral prospect is expected to evaluate the Wasatch at a Nebraska .................................................. 88.60 Southeastern Colorado ........................... 90.50 true measured depth of 11,193’ (8,130’ TVD) and have a bottom Western Colorado ................................... 87.38 hole landing in the ne-sw 14-14n-98w. To be drilled within Kansas Sweet NW ................................... 91.75 SWEPI’s Moonstone Unit, a 25,100-acre entity located in the over- Kansas Sweet SW.................................... 92.00 Henry Hub Gas, mcf............................... 4.66 all area of 13n–14n, 97w–98w, anticipated log tops of this wildcat Opal (Wyo.) Gas, mcf ............................. 4.47 include the Laney at 3,249’, Cathedral Bluffs at 4,058’, Tipton at El Paso–San Juan Gas, mcf.................... 4.46 6,816’, Wasatch (main body) at 7,639’, Wasatch target at 8,195’, NY Citygate Gas, mcf ............................. 4.49 Western Slope (Colo.) Gas, mcf ............. 4.30 and the Fort Union is expected to be encountered at 11,000’ Eastern Slope (Colo.) Gas, mcf .............. 4.41 beneath a ground elevation of 6,937’. This latest staking by SWEPI represents the second horizontal Looking for a Rig? Wasatch wildcat foray by the major in this township. Almost 2 miles southeast of the Moonstone Unit #1H, SWEPI drilled the Page 8 Is the Right Place for You. State #4-36BH, nw-nw 36-14n-98w. This lateral Wasatch test bot- tomed in the Green River at a depth of 8,543’ and was given an Some contractors IPP of 3 bopd, 22 mcfgpd, and 3 bwpd from the horizontal inter- may have other val at 7,700’–10,355’. Considered noncommercial, this attempt rigs available that was temporarily abandoned in July of 2012. The State #34-36BH aren’t listed in our represents SWEPI’s first lateral venture in the Washakie Basin and RigSpotter Report. spots on the southern flank of the basin roughly 50 miles southeast Just give them a of Rock Springs, Wyo. call to find out. At a Bureau of Land Management (BLM) Wyoming oil and gas sale conducted in November 2012, Denver-based Hannon and Associates (H&A) was successful in tendering the auction’s two highest per-acre bids within Sweetwater County. The company Rocky Mountain Oil Journal ISSN #1074-6803 (USPS 360-260) is published weekly by Montana Oil Journal See SWEPI page 5 Inc. 701 S. Logan St #112, Denver, CO. Periodical postage paid at Denver, CO. POSTMASTER: Send address changes to Rocky Mountain Oil Journal, 701 S. Horizontal Drilling Boosts Fidelity Continues Activity Logan, St #112, Denver, CO 80209. Mail subscription rates: $229.00/annual; Canada; $309.00/annual; U.S. Colorado’s Oil Production in 2013 in Paradox Basin Funds. Subscriptions payable in advance. Jerry Davis, Publisher & C.A. Huseby, Editor. Oil Output Up Nearly 30% Grand County, Utah olorado’s oil production increased enver-based Fidelity Exploration and Production (Fidelity) C29.9 percent for 2013 compared to Dhas moved in Nabors Drilling rig No. M40 and is making TIME SENSITIVE MATERIAL THANK YOU TIME SENSITIVE MATERIAL THANK YOU the previous year. Total oil produced progress at a Paradox Basin wildcat located more than 15 miles reported by the state totaled west of the town of Moab in Grand County, Utah. The Cane Creek 63,802,553 bo, which was a signifi- #36-1-25-18, se-se 36-25s-18e, is permitted as a horizontal Pennsyl- cant increase from the 49,135,567 bo vanian Cane Creek test scheduled to reach a vertical depth of 7,638’. produced in 2012. The uptick can be largely attributed to the The proposed total measured depth for this venture is 11,988’; bot- expansion of drilling in the D-J Basin, where the horizon- tom-hole location is expected to land near the nw-nw 36-25s-18e. tal Niobrara play continues to add to Colorado’s reserves. NEWSPAPER (RUSH) NEWSPAPER (RUSH) New regulations and hot debates over the safety of hydraulic fracturing have likely affected state production totals but regard- less, Colorado saw a 72 percent improvement in horizontal drilling, in addition to a 7 percent increase in overall permits approved by the Colorado Oil and Gas Conservation Commission. Noble Energy (Noble) is Colorado’s top oil operator for 2013 and is credited with producing 17,170,446 bo, an impressive upswing of 23.97 percent over the firm’s aggregate for 2012, which came in at 13,850,408 bo. The vast majority of Noble’s production is coming from the huge Wattenberg Field complex in the D-J Basin, a multi-pay oil and gas pool that produces primarily from the Niobrara, Codell, and D/J sands. Following its discovery in 1970, Wattenberg Field has cumulated 289.8 mmbo and 4.4 tcfg. In 2013, the reservoir yielded 18.1 mmbo and 63.2 bcfg. The second-largest oil producer in the state for the previous year was Kerr-McGee Oil and Gas (Kerr-McGee). The Okla- homa-based company recovered 16,914,486 bo, up 52.8 percent compared to the 11,069,998 bo produced in 2012. As with The nearest exploration to Fidelity’s new activity is roughly a Noble, Kerr-McGee’s output originates primarily from their mile to the west at Shell Oil’s Quintana Fed #1-35, ne-sw 35-25s- operations in Wattenberg Field. 18e. This 1969 failure bottomed in the Mississippian at 8,140’. Coming in third place is Encana Oil and Gas (Encana) with a Before abandonment, a drillstem test run in the Mississippian at See COLORADO page 4 See FIDELITY page 5 Page 2 RMOJ April 11, 2014–April 17, 2014 WEEKLY WIRE Note: Sale dates are supplied by various agencies May 20 and are tentative. Nebraska: State lands oil and gas lease sale. For more info: www.belf.nebraska.gov APRIL 2014 May 20 April 12-16 New Mexico: State lands oil and gas lease sale. Oklahoma: SPE Improved Oil Recovery For more info: www.nmstatelands.org. Symposium. For more info: www.spe.org. May 20-22 April 13 North Dakota: 2014 Williston Basin Petroleum Palm Sunday Conference. For more info: www.wbpc.ca April 15 May 21 Passover Montana/Dakotas: BLM State lands oil and gas April 15 lease sale. For more info: NATIONAL PERSPECTIVE. REGIONAL EXPERTISE. TRUSTED ADVISOR. Nebraska: Nomination deadline for May 20, 2014 www.blm.gov/mt/st/en/prog/ state lands oil and gas lease sale. For more info: energy/oil_and_gas.html As the only firm headquartered in North Dakota listed on www.belf.nebraska.gov May 26 Engineering News Record’s Top 500 Design Firms list, KLJ Memorial Day April 15 has proven to be successful at both a national and Nevada: BLM oil and gas lease sale. For more regional level. The rankings are evidence of a rich 75-year kljeng.com info: www.blm.gov/nv/st/en/prog/minerals/ history, a thriving presence and a strong future. leasable_minerals/oil_gas/oil_and_gas_leasing.html April 15-17 JUNE 2014 Canada: Oil Sands Heavy Oil Technologies June 3 Conference. For more Info: www.oilsandstechnologies.com Montana/Dakotas: State/Trust lands sale. For more Oil & Gas Development info: http://dnro.mt.gov/trust/mmb/og IN THIS ISSUE: April 16 PLAT BOOKS June 6 INDUSTRY BRIEFS New Mexico: State lands oil and gas lease sale. For more info: www.nmstatelands.org. New Mexico: Nomination deadline for June 17, PAGE 3 2014 state lands oil and gas lease sale. For more Size 11 x 17 April 17-18 RIGSPOTTER info: www.nmstatelands.org. Plat Books show sections, oil wells, gas wells dry Colorado: SPE Western North America & Rocky PAGE 8 June 10-11 holes with total depths, etc. Contained in flexible Mountain Joint Conference. For more info: covers, these books are convenient to use, easy to Texas: PIRA Understanding Global Oil Markets SUNBURST BADGER April 18 understand, and a reliable source for up-to-date Conference. For more info: www.pira.com drilling information. PAGE 5 Colorado: State lands oil and gas lease sale. For June 12 more info: www.trustlands.state.co.us/Sections/ FREE SAMPLE PAGE ON REQUEST REGIONAL WELL LIST Minerals/Pages/Auctions.aspx. Colorado: BLM oil and gas lease sale. For more ARIZONA NEVADA PAGES 13-19 info: www.blm.gov/co/st/en/BLM_Programs April 20 COLORADO NEW MEXICO /oilandgas/leasing.html Easter IDAHO NORTH DAKOTA June 14 April 22-23 MONTANA SOUTH DAKOTA USA Flag Day NEBRASKA UTAH Texas: Texas Alliance Expo & ROCKY MOUNTAIN June 15 WYOMING Annual Meeting. For more Father’s Day info: www.texasalliance.org/events/alliance-expo- IL OURNAL O J PUBLISHED WEEKLY annual-meeting/ June 16-20 00 April 25 Illinois: 2014 Exploration & $48.