EE3 LLC is an independent oil and gas exploration and production company headquartered in Boulder, Colorado. The company has amassed more than 100,000 net acres in the North Park Basin (Jackson County, Colorado) to prove up a new horizontal Niobrara concept.
Damfino #02-06H Produces 20,542 BOEs in 30 Days
Today EE3 announced the highest reported 30-day initial production rate of a horizontal Niobrara well drilled in the North Park Basin.
The Damfino #02-06H produced 20,542 barrels of oil equivalent (BOE) during the 30-day test period averaging approximately 685 barrels of oil equivalent per day (BOEPD). A peak daily rate exceeded 1,000 BOEPD during the 30-day test. The average flowing casing pressure was 727 pounds per square inch from 5.5 inch casing with no production tubing.
Two days after the 30-day test, on December 5, 2013, the well was flowing 715 BOEPD on a 25/64 inch choke with a flowing casing pressure of 340 PSIG. The Damfino #02-06H was drilled to 7,205 vertical feet before being completed with a 3,330 foot lateral in the Niobrara D bench. The well was completed with 18 stages of the plug and perforation process using a total of 3.7 million pounds of sand.
This record 30-day well is located in Section 6, Township 6 North, Range 80 West of Jackson County, Colorado, in the center part of the North Park Basin. EE3 LLC holds a 100% working interest in the well.
Follow On Record From Previous Well
EE3 LLC’s Hebron #3-12H flowed approximately 1,054 barrels of oil in a 24-hour test period, with 400 pounds per square inch flowing casing pressure on a 48/64th-inch choke. The Hebron #3-12H was drilled to 6,388 vertical feet before being completed with a 4,100 foot lateral. The well was completed with 19 stages of the plug and perforation process using a total of 3.9 million pounds of sand.
Same Formation – Different Basin
As we mention in the write-up, North Park Basin Emerges with Large Niobrara Potential, the Wattenberg Niobrara (predominately Weld County, Colorado), the Niobrara B bench has been the most explored/produced and is the most de-risked across the play. The Niobrara A and C benches are still early but companies believe they will be productive. Bonanza Creek Energy (ticker: BCEI) is in full scale development mode of the Niobrara B bench and is beginning to drill Niobrara C bench wells in the Wattenberg Field. However, the company has additional exploration upside in the North Park Basin, where the company owns the second largest acreage position. In a September 2013 investor presentation, BCEI’s North Park Basin estimates were EURs of 211,000 BOE with a well cost of $5.1 million for a NPV10 at $100 oil of $3.9 million. We note these estimates were from EOG Resources’ (ticker: EOG) 2008 well in the North Park Basin and recent well results out of the play could mean North Park Basin Niobrara wells are much larger than anticipated.
The North Park Basin is a know producing region that produced 96,000 barrels of oil and 1.3 billion cubic feet of natural gas from 153 wells in 2007. A few horizontal wells don’t make a play – but the Damfino and Hebron announcements continue to draw the attention of oil and gas wildcatters.
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