Plans submitted to the BLM call for over 100 horizontal wells
Black Hills Plateau Production (ticker: BKH) proposed its development plan for 32,600 acres of federal, private and split-estate lands in De Beque, Mesa County, Colorado, to the Bureau of Land Management (BLM) earlier this month. The plan calls for up to 104 horizontal wells on 13 well pads targeting the Piceance Basin, according to the release from the BLM. Operations are tentatively scheduled to begin in about one year.
According to the company’s 10Q, BKH contracted two additional drilling rigs in order to support operations in the Piceance. The company also plans to raise its capital expenditures to $167 million from $123 million, despite significantly lower commodity prices, which have forced most operators to cut their spending plans.
There will be a public commenting period of about 30 days before Black Hills moves forward with the development. Chris Joyner with the BLM told a local news station that comments are encouraged to help understand public concerns, and how they would like to see those issues mitigated.
