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.
Leasehold
Articles from Leasehold
PA Schedules Oil, Gas Lease On Line Auction in August
Pennsylvania’s Department of Conservation and Natural Resources (DCNR) has scheduled Aug. 8 to auction oil and gas leasehold rights on 218,000 acres of state forestland that are estimated to contain rich reserves of natural gas. Unlike previous oil and gas lease sales in which sealed paper bids were used, DCNR plans to conduct its first-ever online auction with the help of FreeMarkets Inc., based in Pittsburgh. Buyers may competitively bid on tracts anonymously in real time.
July 8, 2002