Production On the Rise for Barrett Resources in the Piceance Basin
The Colorado Oil and Gas Conservation Commission has approved
Barrett Resources' proposal to drill one well per 20 acres within
the company's 9,000 acre Rulison, Parachute, and Grand Valley
fields located in the Piceance Basin of western Colorado. With this
ruling, Denver-based Barrett expects to add 143 Bcf of proved gas
reserves from the allotted 134 well sites by the end of 2000.
The approval sets the stage to extend the Piceance drilling
inventory by over five years with a continuous four-rig drilling
system. It follows a similar ruling in 1998 that opened 4,000 acres
in the Piceance to the same well spacing. Barrett's proved gas
reserves in the Piceance as of Dec. 31, 1999 were 461 Bcf.
"Barrett has achieved exceptional success in the Piceance
Basin," said Joseph N. Jaggers, president of Barrett. "Production
levels continue to exceed our original forecast for the year.
Development on 20-acre well density will allow Barrett to improve
reserve recovery and sustain low risk production growth."
The commission's ruling did impose certain requirements on the
producer. The company must use directional drilling from 40-acre
surface locations for 33 of the 134 wells, additional site
reclamation and advance notice on drilling. Barrett expects these
conditions to add up to $140,000 (15%) to the drilling and
completion costs on each of the 33 wells.
The company's Piceance gas production has increased 17% since
the beginning of 2000, setting a record level of 105 MMcf/d.
Barrett attributes the rise to its continuous four rig drilling
program, more efficient drilling techniques and increased
compression on the gathering system. As a result, the company said
it expects to surpass its forecast for the year by 21 wells,
drilling a total of 88 wells in 2000.
"Our exploration team also continues to generate quality
prospects in the Piceance Basin, such as the Grand Hogback
prospect, which will be tested in 2001. The Piceance Basin is a
cornerstone of the company's natural gas growth and demonstrates
the effectiveness of the Company's Rocky Mountain strategy," said
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