In early 2013, we announced a successful discovery in the Niobrara shale formation which has the potential to increase our natural gas reserves and daily production in future years.
The discovery well produced an initial high of 16 MMcf/d at a flowing pressure of 7,300 pounds per square inch. The Niobrara and Mancos Shales are generally located at depths of 10,000 to 13,000 feet.
We have the lease rights to approximately 180,000 net acres of the Niobrara/Mancos Shale play that underlies our expansive leasehold position in the Piceance Basin.
Substantial gathering and processing infrastructure is in place to accommodate additional gas volumes from the area, as is take-away pipeline capacity from the basin.
Gas produced from the Niobrara and Mancos Shales can be processed without modification to existing gas treatment facilities.
We also initiated 3D seismic work in the Piceance Valley to aid our delineation work. At this point, our Niobrara activity is exploratory in nature as we work to drive down costs to make the play economically competitive vs. other opportunities we have in our portfolio for capital investments.
Read more about WPX’s Niobrara discovery: