The Niobrara Shale set off a leasing boom in the Denver Julesburg Basin and it might incite a new round of drilling in the Piceance Basin. Delta completed the latest of several successful industry shale wells in the Piceance Basin. Delta expects the well to ultimately produce from the Mancos Shale and Frontier formations as well. Low gas prices have made development of the Williams Fork sub-economic in many areas, but add high rate shale wells and drilling might go off to the races.
Delta (DPTR) announced today that the 2C-433D well began producing hydrocarbons on Wednesday, July 20, at a choke-restricted rate of 5.4 million cubic feet of gas per day (MMcf/d) with 8360 psi of flowing tubing pressure. Gas sales from the well began on Thursday, July 21. The well continues to produce at a choke restricted rate of between 3.5 and 5 MMcf/d with a stable flowing tubing pressure of 8160 psi. The well has also just started to produce some condensate with 20 bpd measured.
We believe that this well’s result combined with other Delta operated shale wells and similar wells from other operators in the Piceance Basin, validate the resource potential of the Niobrara and Mancos shales in the basin. It is important to note that the 2C well is producing from the only 1300′ of pay in the Niobrara and Frontier.
Roughly 2700′ of gross potential hydrocarbon bearing pay remain uncompleted in the Mancos Shale and Corcoran formations. The Williams Fork also remains uncompleted here. It is still too early to provide an estimate of total EUR of the well. However, we are very encouraged by the measured rates to date, and remain optimistic that the Niobrara and Mancos shales will be highly economic. Delta holds approximately 22,400 net acres of leasehold in the Vega area, including deep rights to substantially all of that acreage. Early indications are that the entire position is prospective for shale development in the Mancos, Niobrara and Frontier.
Read the full news release at deltapetro.com