Denver-based Extraction Oil & Gas Inc. has reached an operating agreement with Broomfield, CO, culminating a year-long process to begin exploration and production (E&P) activity in the area.
The Broomfield City Council approved the agreement, which officials said followed "an unprecedented collaboration and stakeholder engagement" that produced "one of the most thoughtfully designed oil and gas developments in the country."
Extraction officials said the agreement gives the company "a clear pathway" for completing the needed spacing and permitting process for the Broomfield leasehold, which is within the Denver-Aurora-Lakewood greater metropolitan area. The E&P expects to spud its first Broomfield wells from the Coyote Trails pad before the end of this year.
As part of the agreement, Extraction committed to using advanced technology and operational best practices.
Extraction Senior Vice President Eric Jacobsen, who handles operations, said the agreement should minimize "inconveniences" where the company is working, noting the company has used electric drilling and sound walls, “quiet completions fleet technology” in the Denver-Julesburg Basin, where its activity is concentrated.
"Extraction has a wide array of mitigation techniques and technologies available, and we use these techniques in a customized approach to development where each site is evaluated and mitigated differently,” Jacobsen said.
CEO Mark Erickson lauded local Broomfield officials for their "pragmatic approach" and "seizing of the opportunity to create a best-in-class development." He also praised the Broomfield Citizen Comprehensive Update Committee Task Force for working with the company to complete its development plan.
Denver-based Extraction, which launched as a public company a year ago, has seen a surge in output from its Colorado operations this year and has predicted enhanced drilling techniques would help deliver double-digit growth in 2017.