Uinta

DCP Midstream LLC plans to build a 110 MMcf/d gas processing plant and high-pressure gathering system in Weld County, CO, to augment its position in the Denver-Julesburg (DJ) Basin, the company said Tuesday.

Peregrine Midstream Partners LLC unit Ryckman Creek Resources LLC was cleared to use FERC’s prefiling review process for its proposed Ryckman Creek Gas Storage Project in Uinta County, WY, near the Opal Hub.

Western Gas Partners LP has completed the acquisition of midstream assets in the Uinta Basin in northeastern Utah from its largest customer and parent company, Anadarko Petroleum Corp., for an estimated $107 million, it said Thursday. The acquisition includes a 51% interest in Chipeta Processing LLC, which owns the Chipeta natural gas processing complex in Utah. The complex entails two recently completed processing trains: a refrigeration unit completed in November 2007 with a design capacity of 240 MMcf/d and a 250 MMcf/d capacity cryogenic unit that was commissioned in April (see Daily GPI, July 15). Chipeta provides processing services to Anadarko and third-party producers in the Greater Natural Buttes Field and has current throughput of 375 MMcf/d. With the closure of the transaction, Anadarko still retains a 24% stake in Chipeta. Anadarko spun off Western Gas in 2008 (see Daily GPI, Dec. 23, 2008). The midstream assets acquisition will be financed primarily with debt.

Berry Petroleum Co. has completed its $48.6 million purchase of Uinta Basin properties from Williams Production RMT Co. The properties, located in the Brundage Canyon in northeastern Utah, currently are producing 1,800 net boe/d. Berry estimates the 43,500 acres have proved reserves of 8.6 million boe, comprised of 75% light oil and 25% natural gas. The company said it had identified more than 50 proved undeveloped locations and 25 behind pipe recompletions within the productive area of the field. The Bakersfield, CA-based independent also announced that Logan Magruder has joined the company as vice president of the Rocky Mountain and Mid-Continent Region. Magruder held similar positions with Calpine Corp. and Barrett Resources, and has served as a consultant for Berry since Feb. 2003.

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.

CIG plans smart pigging of the Uinta Basin Lateral in late May. On May 23 and again on May 27, flow from Natural Buttes Compressor Station must be cut to about 100 MMcf/d for about 10 hours each day. For 27 hours beginning on May 25 and again on May 29 for about 27 hours, flow from Greasewood Station to Wamsutter Station must be reduced to about 100 MMcf/d. Construction work related to the Pipeline Integrity Program (PIP) will require the shut-in of Table Rock Residue volumes for 16 hours on May 17. PIP construction will require sections of the Wyoming mainline between the Laramie and Cheyenne Compressor Stations to be removed from service for short periods (less than 24 hours) May 1 and 2 and again May 10-12. Impact to service is expected to be minimal. No service intereruption is anticipated during May 7-8 PIP construction between Cheyenne Compressor Station and the Cheyenne meter station.