Questar Corp.’s (NYSE: STR) subsidiary, Wexpro Co., has entered into a joint venture to develop natural gas-producing properties in western Colorado’s Piceance Basin. Wexpro will partner with Piceance Energy LLC, a subsidiary of Laramie Energy II LLC.
Wexpro expects to spend $60 million to $70 million on an 80-well drilling program targeting the Mesaverde formation. The partners will begin drilling in the Collbran Valley in Mesa County in early October, and continue through early 2017. The joint-development agreement also provides Wexpro options to acquire development rights for deeper formations and, with mutual consent, to extend and expand the drilling program up to 300 wells, depending on commodity prices.