Green River basin Niobrara activity yielding oil

By OGJ editors

Encouraging reports of Niobrara oil production are emerging from the eastern Green River basin, west and northwest of where EOG Resources Inc. had its initial success in Colorado’s North Park basin.

Entek Energy Ltd., Perth, in late December 2011 said it planned to acquire 28,000 gross acres, 19,000 net acres in the basin that would bring its total holding to 110,000 gross acres, 91,000 net acres.

Before the acquisition, Entek Energy held 55% working interest and Emerald Oil & Gas NL, Perth, held 45% in a Niobrara acreage position that lies along the Colorado-Wyoming state line. Numerous other public and private operators hold large positions in the general area in both states.

Emerald Oil & Gas noted that Quicksilver Resources Inc., Fort Worth, revealed sustained Niobrara production rates of more than 500 b/d of oil from a horizontal well and 100 b/d from single-zone completions in several vertical wells in Colorado within 25 miles south of Emerald’s acreage.

Emerald Oil & Gas said, “The directors of Emerald consider the Quicksilver production results to be significant for EMR, as they indicate that a frac treatment design, effective in the Green River Basin Niobrara shale oil play, has now been demonstrated and this provides clear evidence of the production potential that could be expected from wells on EMR acreage.”

Emerald Oil & Gas describes the Green River basin as having target Niobrara oil pay sections in four benches totaling 1,100 ft thick, several times thicker than those in the Denver-Julesburg basin. Fractured intrusives have also been encountered in the area. It said its acreage is also prospective for coalbed methane and conventional oil and gas.

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