Denver-based St. Mary Land & Exploration Co., which controls approximately 16,400 acres (10,803 net) of leasehold in Uinta Basin of Utah, said it is completing its Ute Tribal KMV #1 in the its Duchsne Deep Prospect there. The independent is responsible for 100% of the well costs through the completion of the well and will own a 77.5% working interest thereafter. Testing of the lower Mesaverde Blackhawk and Castlegate intervals already has been completed, the company said. To date, two intervals in the lowermost Blackhawk interval between 15,300 feet and 15,900 feet have been tested, and two additional intervals were tested in the Castlegate interval between 14,400 feet and 15,250 feet. However, St. Mary noted that the zones tested have flowed natural gas and water at “sub-commercial rates.” The Blackhawk and Castlegate intervals were secondary targets in the test, “but the failure to establish commercial production is a disappointment.” Testing of the primary Mesaverde section between 11,700 feet and 14,380 feet is expected to take 60 to 90 days, and will involve multiple sand intervals and multiple fracture stimulations. The company also announced that COO Ron Boone will retire at the end of the year. He will be replaced by Doug York, who has been with St. Mary for seven years, most recently as manager of engineering and acquisitions.

Independent Kodiak Oil & Gas Corp., based in Denver, has sold some of its coalbed methane assets in southwestern Wyoming, known as the Pacific Rim Project, to Warren Resources Inc. of New York for an undisclosed amount. Warren, an independent also focused in the Rocky Mountains, acquired an 80% undivided working interest in the two existing wells located on the Pacific Rim property and the balance of the 15,000 acres located there. Warren also has become the operator, while Kodiak will own the remaining 20% working interest. Warren’s current operations are focused on producing natural gas in the Washakie Basin, which comprises a substantial portion of the southeast third of the Greater Green River Basin in south central Wyoming. Warren and Kodiak have agreed to drill, complete, and hook up seven additional wells on the project along with one water disposal well. Subject to obtaining drilling permits, drilling activity is expected to begin in August and should take approximately 60 days to complete, with existing pipe hook ups by year-end. Kodiak will receive a carried working interest on the first $2.5 million of drilling and completion costs.

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