By OGJ editors
HOUSTON, Sept. 4 -- Chevron Corp. has started gas production in the Piceance basin in northwestern Colorado as part of a $7.3 billion project to develop an estimated 3 tcf of gas in the basin over several decades.

Production, begun Aug. 25, is 5 MMcfd from the Cretaceous Williams Fork formation through a 30-in. sales line. Chevron has drilled 82 wells on four pads and is launching work on the fifth and sixth pads. Two rigs are running.

The staged operation will involve drilling, fracturing, and completing 2,000-3,000 gas-condensate wells from multiwell pads on 33,000 acres in Garfield County and installing gas gathering and compression equipment. Chevron has a 100% working interest.

Current production capacity of the facilities is 50 MMcfd, and capacity is intended to build to 400-450 MMcfd in several years. Development drilling began in 2007 with the two purpose-built rigs, and four more rigs are to join them over time.

As many as 22 extended-reach wells are to be completed from a single pad.