Pacific Energy Development, an energy company engaged in the acquisition and development of strategic high-value energy projects in the U.S. and Asia, today announced the estimated initial production rates of the first three wells in which the Company has a 12.5% interest that were drilled and completed by a third party operator on acreage recently acquired by the Company in the Wattenberg Area of Weld County, Colorado. The 24-hour peak rates for these three wells, as estimated by the Company based on information received from the operator, are as follows:
- 529.2 BOE/D (459 Bbl oil and 421 Mcf/d gas)
- 556.2 BOE/D (458.7 Bbl oil and 585 Mcf/d gas)
- 542.6 BOE/D (459.2 Bbl oil and 500 Mcf/d gas)
The Company acquired its Wattenberg Asset in March 2014, expanding its position in the Denver-Julesberg Basin from an original 2,384 net acres (its Niobrara Asset) to a total of 16,400 net acres in Weld and Morgan Counties, Colorado. Spudded in January and completed in April, these three wells are among the first four wells in the drilling program that the Company announced earlier this month. The first well was drilled and completed in 2011 and has already returned its drilling and completion costs.
The Company plans to drill, and to participate in the drilling of, approximately 16 total wells (equivalent to 6 net wells to PED) during 2014 with 11 of those wells (equivalent to 4 net wells to PED) being drilled in the Wattenberg Asset and 2 wells (equivalent to 0.4 net wells to PED) in its Niobrara Asset in 2014, including both operated and non-operated wells. Both the Wattenberg and Niobrara Assets are located in the DJ Basin and substantially in Weld County, Colorado.
In preparation for its drilling program this year and in subsequent years, the Company recently filed spacing and pooling applications with the Colorado Oil and Gas Conservation Commission for sixteen of its newly acquired sections of acreage, is currently performing title work, and plans on filing applications for over 90 drilling permits over the next 30 days. These applications are expected to be finalized in June at which time the Company will be able to specifically identify well locations and its corresponding expected working interest in those wells.
"We are excited about the very positive results from these first 3 wells drilled and completed on our newly acquired Wattenberg Asset. The outstanding production rates from these wells validate our strategic focus on the Wattenberg and Niobrara plays as the growth engine of our business, and are a demonstration of our technical expertise in selecting high-return assets," said Frank C. Ingriselli, President and CEO of the Company. "We look forward to more success in the DJ Basin as we continue to carry out our 2014 development and production drilling program, which we expect will further strengthen our cash flow and allow us to capitalize on other growth opportunities."
For more information about related Opportunities and Key Players visit Oil Shale Projects