Mancos/Niobrara eyed in northwestern Colorado

By OGJ editors
HOUSTON, Apr. 26
-- Dejour Energy Inc., Denver, will drill an initial vertical well to test oil and gas potential in the Cretaceous Mancos/Niobrara formation on its 7,000-acre leasehold in Rio Blanco County, Colo.

The company plans to drill the well in May to test the upper and lower Niobrara sections of the Mancos shale and a secondary target in the Castlegate sand member of Mancos. Dejour is operator with 72% working interest. Dry hole cost is projected at less than $500,000.

This leasehold sits on the western flank of the Douglas arch that separates the Piceance and Uintah basins and is south of giant Rangely oil field operated by Chevron Corp. since the 1960s.

Dejour pointed out that private operators R.W. Bayless and Foundation Energy are exploiting the Lower Mancos zone 6 miles to the southwest of Dejour’s proposed well location.

Pending a successful outcome of the test well in proving the extension of the play to Dejour’s leasehold, Dejour plans to commence a formal horizontal well development program.



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