Niobrara NOW
Players, play extensions, technology, deals and more!

 According to Baker Hughes, as of July 6, 2012, the number of rigs targeting the Niobrara within the DJ Basin of Colorado stands at 44 and remains relatively steady since April 2011.  Of the 44 rigs drilling, 21 are horizontal and 14 are directional; all are classified as development.  This docFinder Alert highlights companies focused on unlocking the riches of the Niobrara which is currently deemed emerging by most of the industry. Companies are using 3D seismic, longer laterals, historical vertical penetrations and other methods to find the sweet spots.  There have been numerous successes as the industry continues to test the area.

Noble Energy is a Pacesetter in the play and leads its latest presentation - NOW - with the DJ basin. NBL projects a 15% annual production growth rate through 2016 from a base of 73 Mboepd (Q1 2012, 53% liquids).  Plans call for ramping the horizontal rig count from 7 today to 9 by year-end. A hefty 35% (or $1.3 billion) of total 2012 Capex is dedicated to this area.  Slide above left highlights the Wells Ranch AE29 - 68HN well.  This well experienced a dramatic improvement in recoveries attributed to a long lateral (9,120 feet completed with a 39-stage completion) scoring over 100% after-tax ROR and a seven month payout (well costs are $7.0 to $8.0 million).  Noble's Northern Colorado area is currently experiencing the best economics - beating out the Wattenberg core and extension areas. As evidence of its commitment to the Niobrara, Noble just sold $617 million of its Mid-Con properties to Unit Corp. to provide acceleration of its Niobrara oil play

Slide above right is from Bonanza Creek Energy, which experienced a 96% increase in production during Q1 2012 (7,100 boepd) vs. Q1 2011. BCEI has plans to increase its Rocky Mountain production 5X by 2014. The company is in full development mode in the Wattenberg area and in testing mode in the North Park area of the play.  In North Park, Bonanza Creek's type curve indicates 211 Mboe EUR's with 30-day rates of 304 boepd and well costs of $5.1 million.  In 2012, plans call for spending $250 million in the Rockies for 92 vertical wells ($72 million), 24 horizontal Wattenberg wells and 3 horizontal North Park wells ($99 million).   

More HOT slides and data below. 

PLS highlights some additional Niobrara players below including Pacesetter Anadarko Petroleum who benefits from a legacy land grant mineral ownership position.  Also, PDC Energy which provides investors with the highest per share leverage to the core horizontal Wattenberg Niobrara play.  Voyager Oil & Gas just announced its acquisition of Bakken and Niobrara player Emerald Oil and Recovery Energy presents an excellent technical and competitor overview of the play.