The value of oil and natural-gas mergers and acquisitions in the Niobrara shale formation totaled nearly $4 billion in 2012, according to the accounting firm PricewaterhouseCoopers.
The value of the three Niobrara deals in 2012 more than doubled the $1.4 billion value of the four deals struck in 2011, PwC told the Business Report.
More than $3.6 billion came from two deals that closed in the fourth quarter of 2012. PwC has a policy not to name companies involved in the deals.
One deal includes a combination of assets in the Piceance Basin in northwest Colorado and the Niobrara formation in the Denver-Julesburg Basin.
"If you look at the interest in the Niobrara, it's really been up for 2012 and continues in the fourth quarter with two significant deals," said Rowena Cipriano-Reyes, a Denver-based partner with PwC's energy practice.
The size of the deals stems from companies' desire to diversify their assets as well as horizontal oil drilling opportunities, she said. Companies that focus on natural-gas drilling, for example, have sought to enter the Niobrara for shale oil.
Deals in the Niobrara come as Rocky Mountain oil and gas transactions set fourth-quarter and 2012 records. PwC reported 15 deals totaling $9.9 billion in the fourth quarter and 38 deals worth $22.8 billion in 2012.
"Similar to the national trend, those with assets in the Rockies accelerated their deal plans toward the end of the year due to the pending fiscal cliff," Cipriano-Reyes said. "Looking forward we believe deal activity will continue at similar levels, with the potential of private equity more actively pursuing deals here."
The most active shale plays for deals with values greater than $50 million during the fourth quarter include the Bakken in North Dakota, which saw seven deals totaling $4.1 billion.
Nationwide, oil and gas merger and acquisition activity during the fourth quarter of 2012 came to 75 deals totaling $56.2 billion, the second-highest level seen in a decade.
The flurry of fourth-quarter activity pushed overall deal volume in 2012 to 204 transactions for deals valued at over $50 million. The deals totaled $146.2 billion, also the second-highest total deal value in 10 years.
“We will continue to pursue additional Utica Shale acreage purchases that complement our ... Okla., and active in Colorado's fledgling Niobrara oil play, ...
... the Niobrara Formation; both plays are 90% oil. Our natural gas resources are located in the East Texas Basin, in the Haynesville/Bossier gas shale and ...
AUSTIN EXPLORATION LIMITED (ASX:AKK) SEALS MAJOR PRESENCE IN USA SHALE EXPLORATION
Pubblicata in rete il 24/08/2011 09:47, tempo medio di lettura 3 minuti e 52 secondi
Austin Exploration Limited (ASX:AKK) is pleased to announce that settlement of its two North American Oil and Gas Shale assets has successfully been completed, with a fully funded multi-well drill program due to commence mid next month. Austin has acquired more than 16,000 acres that lie within two of the most prolific Oil and Gas Basins in North America. Both properties are located in close proximity to infrastructure and drilling conditions are excellent. Approximately 11,000 acres have been acquired in Freemont County, Colorado, covering the Niobrara Shale within the Denver Julesburg (D.J) Basin. An additional 5,000 acres covering the Eagle Ford Shale have also been acquired in Burelson County, Texas. The first Eagle Ford well has been set to spud on Monday the 19th September 2011, US time. The Company will first drill 3 vertical wells, after which engineers will examine and review the electronic logs and the core samplesfrom the 3 wells. The best results from these wells, in terms of oil production and formation characteristics, will be re-entered and a 5,000ft horizontal "multi-stage frac" will be drilled into the Eagle Ford formation. An independent report on Austin's Eagle Ford acreage has highlighted potential for 32 development wells with potential of 179,000 - 810,000 barrels of oil per well from the Eagle Ford, with additional potential from Austin Chalk and Buda/Georgetown Limestone (see ASX announcement 7 July 2011). Completion of the US shale exploration acquisitions follows an extensive Geological , Land Title and Environmental review undertaken by Austin's management and engineering teams over the past 60 days. Austin's newly appointed CEO, Guy Goudy commented "This is a great achievement for our company and will provide a solid foundation for Austin to transition into a significant oil and gas producer." "The large acreage positions are a first for Austin and will allow for continual and ongoing exploration with a view to building significant reserves and ultimately production. Importantly, the Company maintains high-interest positions in both projects which affords Austin the ability to have complete control over the management of its projects. It validates Austin's strategy of maintaining a strong US presence, which has enabled Austin to secure this significant acreage position, through the relationships of our Chairman Dr Mark Hart, and will ensure Austin is well placed to progress the development of these projects in the near term" Mr Goudy said. EAGLE FORD SHALE "BIRCH PROSPECT" - BURLESON COUNTY, TEXAS PROJECT HIGHLIGHTS: 1. Approx 5,000 acres with a 93.5% Working Interest and a 70% Net Revenue Interest 2. Interpreted thickness of 300 feet in Eagle Ford formation 3. Eagle Ford Shale is mainly clay-rich limestone with low quartz content making less brittle than typical shale reservoirs (Barnett), yet with high fracturing capability. 4. Potential IP for horizontal well of > 800 BOPD. 5. At 120 acre spacing, this will allow for 32 wells to be drilled horizontally. NIOBRARA SHALE "PATHFINDER PROJECT" COLORADO , USA PROJECT HIGHLIGHTS: 1. Approx 11,000 acres with a 85% Working Interest and a 65% Net Revenue Interest 2. Contiguous acreage with a flat terrain 3. Thick Niobrara section. Average Niobrara thickness is 560 feet 4. High quality oil (39 API) in Drill Stem Test 5. High resistivity in very thick sections (up to 350 ft) 6. Natural fractures 7. Good log porosity (12%) 8. Relatively shallow (lower drill costs): Top depth of Niobrara in this prospect is averaging 3,000 ft For the complete Austin Exploration announcement including maps, please view: http://media.abnnewswire.net/media/en/docs/ASX-AKK-184216.pdf About Austin Exploration Limited: Austin Exploration Limited (ASX:AKK) is an oil and gas development company with assets in Australia and the United States. Utilizing a broad industry network developed from over 30 years of noteworthy investment and acquisition experience by its executive team, Austin seeks to identify suitable development prospects, conduct thorough geological and engineering evaluations and then identify suitable farm-in partners for long term development of these prospects. Contact:Guy Goudy Company Director Austin Exploration Limited Email:GuyG@AustinExploration.com Ph: +61-419-035-297 http://www.austinexploration.com
The Houston law firm Burleson LLP has expanded to Denver in part because of the potential of the Niobrara oil play. The firm, which focuses on energy law, has leased 6700 square feet at the Wells Fargo Center, 1700 Lincoln St., with an option to double ...
At this depth, 120 feet of core will be taken from the Niobrara 'A' and 'B' zones and then subsequently evaluated to determine the direction of the horizontal lateral.
Entek provided an update on the Niobrara Shale Oil Project Appraisal Program in the Green River Basin. Battle Mountain 14-10L - The Frontier (secondary objective) test program will be initiated within the next 10 days.
Workers lower stands into the well as they drill into the Niobrara Shale for gas on a rig outside of Douglas recently. An Australian company plans to drill for oil in the Niobrara Shale formation later this year. CASPER - An Australian firm plans to ...
Gary Poquette has been appointed CEO of Niobrara Health and Life Center in Lusk, Wyo. 2. Tim Menton has been appointed interim CEO of Westlake Regional Hospital in Columbia, Ky.
Colorado Springs Gazette - Barry Noreen - Aug 11, 2011
Seriously, (and all we Niobrarians had better get serious soon) the word “Niobrara” means “Running Water” and comes from a river in northern Nebraska and refers to a vast underground shale formation where oil and gas have been found.
With its commitment to maintaining a viable facility and maintaining access to healthcare for its citizens, the Board of Trustees at Niobrara Health and Life Center (NHLC) has named Gary Poquette Chief Executive Officer, following the retirement of CEO ...
Colorado oil and gas regulators are beginning a water testing program in Weld, Jackson, Elbert and Park counties to establish the current water quality in areas likely to see new energy development tapping the Niobrara formation.
PDC added that the majority of the additional capital will be allocated to the liquid-rich Wattenberg Field, including an expansion of the horizontal Niobraraprogram, and the Permian Basin. Further, PDC said it intends to drill a total of 147 vertical ...
Rowdy and his mother, Tabatha Nielsen, of Niobrara, Neb., use an all-terrain vehicle to cross four cow pastures, then travel three miles down a dusty gravel road and follow a little-used county road for two more miles to get to Niobrara Elementary ...
What's more, this company has amassed more than 70000 net acres in the Niobrara shale. While this company's cash flows and reserves consist mainly of natural gas, Double Eagle may add a meaningful amount of oil to its production and reserve mix as it ...
Noble Energy Inc continues to expand its Niobrara Shale drilling program at Wattenberg, with plans to bring a fifth horizontal rig into the field in the middle of this quarter.
What's more, this company has amassed more than 70000 net acres in the Niobrara shale. While this company's cash flows and reserves consist mainly of natural gas, Double Eagle may add a meaningful amount of oil to its production and reserve mix as it ...
Colorado Springs Gazette - Barry Noreen - 14 hours ago
Is there oil thousands of feet deep, beneath what is known as the Niobrara Shale Formation? The general public doesn't know and if anyone else does, the secret is being closely held.
"Much of our attention during the quarter was focused on launching our North Dakota and Wyoming operations centers, which will serve customers in the Bakken Shale and Niobrara Shale regions, respectively. The lengthy heating seasons in both of these ...
The latest, its July purchase of up to 46000 acres in Colorado's Niobrara shale from Lario Oil & Gas. That's not to say it's retrenching to home territory.
In addition to being prospective for the Niobrara oil shale formation, the Company's asset base is comprised of current production and reserves from the "J" sand along with extensive leasehold prospective for other hydrocarbon-bearing formations such ...
This production growth exceeds prior 2011 guidance of 44.9 Bcfe, and is expected to come from the Wattenberg Field including the horizontal Niobraradevelopment, Permian Basin and Marcellus Shale development, as well as from the partnership repurchase ...
The company has exposure to the Bakken shale in North Dakota and Montana, the Denver-Julesburg Basin and the Niobrara shale in the Rocky Mountain region, and the Granite Wash and the Mississippian oil trend in the mid-continent region.
Noble Energy Inc continues to expand its Niobrara Shale drilling program at Wattenberg, with plans to bring a fifth horizontal rig into the field in the middle of this quarter.
This strategy that has paid off for EOG Resources (NYSE: EOG), the leading oil producer in North Dakota, the Eagle Ford Shale and theNiobrara Shale. Lower entry prices translate into more financial flexibility and superior margins for producers that ...
Gulfport is also drilling wells in south Louisiana and in the Permian Basin of Texas, and in the Niobrara in the Rockies. It also has some oil sands in Canada.
The swath of 18000 acres known as the Banning Lewis Ranch and near the Niobrara shale was intended to be a master planned community including as many as 75000 homes.
The Company's DJ Basin exploration is targeting Niobrara oil. McRae Gap - The Company has identified approximately 103000 net undeveloped acres within its acreage position in the area that it considers prospective for Niobrara shale oil.
The horizontal wells the industry is drilling to capture oil from the Niobrara's shale can extend 5000 feet or more, requiring larger drilling areas that will affect more landowners, Astrella said.
We believe that this well's result combined with other Delta operated shale wells and similar wells from other operators in the Piceance Basin, validate the resource potential of the Niobrara and Mancos shales in the basin. It is important to note that ...
During the second quarter of 2011, Marathon Oil assigned an undivided 30 percent working interest in 180000 acres in the Niobrara Shaleplay, located in southeast Wyoming and northern Colorado, to another company for $270 million, recording a gain of ...
Aug 9 (Reuters) - Carrizo Oil & Gas Inc's second-quarter profit rose more than fourfold helped by higher production and increase in oil prices, and the natural gas-focused energy company said it expects 2011 production to be at par or above its prior view.
"The production contribution from our Eagle Ford completion program and our Niobrara activity should allow us to exit the year at or above our previous guidance of 5,000 net barrels of oil per day (bopd)," Chief Executive S.P. Johnson said.
Eagle Ford Shale is an oil-rich basin located in South Texas while Niobrara is in the Denver-Julesberg basin in Colorado.
Many oil and gas companies, including Carrizo, have been shifting their focus to oil because of sinking gas prices during the past few years.
The company, which expanded its acreage in the Eagle Ford Shale in June, said second-quarter production rose 20 percent to 11.2 billion cubic feet equivalent (bcfe).
April-June net income rose to $7.7 million, or 20 cents a share, from $1.8 million, or 5 cents a share, a year ago.
Excluding items, it earned 24 cents a share.
The company, which has operations in the United States and United Kingdom, said revenue rose 54 percent to $50.7 million.
Shares of the Houston-based company closed at $27.03 on Monday onNasdaq.
Samson preparing for new campaign
Australia-listed Samson Oil & Gas is preparing to embark on a four well campaign in the North American states of Wyoming and Montana.
Samson said the rig up of the drilling rig Evergreen Rig-22 had commenced at the Defender US33-2-29H well location on its Hawk Springs project in Goshen County Wyoming.
The Defender US33-2-29H well will be drilled to a total depth of about 7450 feet and a conventional core will be taken from the Niobrara formation.
Samson said the vertical pilot borehole would be plugged back to a kick-off point above the Niobrara and drilled 4300 feet horizontally within the Niobrara B.
The rig will then be moved to drill the Spirit of America US34-1-29 well on the same project which will evaluate multiple conventional targets, including two closed structural traps in the Permian and Pennsylvanian sections.
After drilling operations are completed on the Hawk Spring project the rig will be relocated to Samson’s Roosevelt project in Montana to drill the Australia II KA6 -1-29H and Gretel 11 KA12 -1-30H wells.
Company Expands Core Wattenberg And Niobrara Development
DENVER, Aug. 9, 2011 /PRNewswire/ -- Synergy Resources Corporation (NYSE Amex: SYRG), a domestic oil and gas exploration and production company focused in the Denver-Julesburg Basin (the "DJ-Basin"), today announced that it has entered into a farm-in agreement with DeClar Oil & Gas for development on certain Wattenberg field properties.
Under terms of the agreement, Synergy Resources interest in the wells is 100% working interest with net revenue interest of 80% across 23 (directional) drill sites and two horizontal Niobrara wells located in the oily and liquid-rich region of the Wattenberg Field near Mead, Colorado.
Ed Holloway, Chief Executive Officer and President of Synergy Resources, said, "The strategic farm-in agreement with DeClar Oil & Gas further strengthens our position in the oil and liquids rich portion of the Wattenberg field while adding to our drilling inventory. We've received the necessary approvals from the town of Mead on July 25th and immediately engaged Ensign Rig #33 to drill wells targeting the J Sand, Codell and Niobrara Formations. We began drilling the first of six (directional) wells to fulfill the farm-in agreement on August 2, 2011. We anticipate that all six wells will be drilled by mid-September."
Holloway continued: "The farm-in agreement complements our focus on the oil and liquids portion of the Wattenberg field. Separate from the DeClar farm-in agreement, we also received approval from the City of Greeley on July 26, 2011to drill 15 additional wells in the J Sand, Codell and Niobrara formations of which 11 will be directional and 4 potential horizontal on the Aims College Prospect. We expect this drilling program to commence later this fall."
About Synergy Resources Corporation
Synergy Resources Corporation is a domestic oil and natural gas exploration and production company. Synergy's core area of operations is in the Denver-Julesburg Basin, which encompasses Colorado, Wyoming, Kansas, and Nebraska. The Wattenberg field in the D-J Basin ranks as the 7th largest field in the U.S. in terms of proved gas reserves and 9th in production. Synergy's corporate offices are located in Platteville, Colorado. More company news and information is available at www.SYRGinfo.com.
This press release may contain forward-looking statements. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.
Workers lower stands into the well as they drill into theNiobrara Shale for gas on a rig outside of Douglas recently. An Australian company plans to drill for oil in the Niobrara Shale formation later this year. CASPER - An Australian firm plans to ...
The Company's DJ Basin exploration is targeting Niobrara oil. McRae Gap - The Company has identified approximately 103000 net undeveloped acres within its acreage position in the area that it considers prospective for Niobrara shale oil.
This production growth exceeds prior 2011 guidance of 44.9 Bcfe, and is expected to come from the Wattenberg Field including the horizontal Niobrara development, Permian Basin and Marcellus Shale development, as well as from the partnership repurchase ...
In January, CNOOC bought a 33% stake from Chesapeake Energy (NYSE: CHK ) in the US company's oil and gas assets in the Eagle Ford and Niobrara shale areas. Although the company lost its bid on the Ghanaian Jubilee field, it continues to look ...
During the second quarter of 2011, Marathon Oil assigned an undivided 30 percent working interest in 180000 acres in theNiobrara Shale play, located in southeast Wyoming and northern Colorado, to another company for $270 million, recording a gain of...
The company has assembled 1.1 million net acres targeting new oil and liquids-rich gas opportunities across multiple basins in the US Devon plans to drill more than 30 wells this year targeting the Tuscaloosa Marine Shale, Niobrara Shale,...
Noble Energy Inc continues to expand its Niobrara Shaledrilling program at Wattenberg, with plans to bring a fifth horizontal rig into the field in the middle of this quarter.
The swath of 18000 acres known as the Banning Lewis Ranch and near the Niobrara shale was intended to be a master planned community including as many as 75000 homes.
Australia-listed Entek Energy has spudded the Battle Mountain 14-10L appraisal well on the Niobrara shale oil project in the Green River basin, Wyoming.
... firms to employ horizontal drilling and hydraulic fracturing to extract hydrocarbons trapped in the tight formations. Over the last year, Devon has also purchased acreage in the Utica Shale in Ohio and Michigan, as well as the Niobrara Shale play.
We believe that this well's result combined with other Delta operated shale wells and similar wells from other operators in the Piceance Basin, validate the resource potential of theNiobrara and Mancos shales in the basin. It is important to note that ...
Carrizo Oil & Gas (CRZO) is an oil and gas exploration company with good exposure to the Eagle Ford, Marcellus, and Niobrara shale plays. The company has a major earnings catalyst as it's just now beginning production in all three plays providing major ...
Gulfport Energy (GPOR) is a well run independent with operations in several E&P hotspots such as Texas, Louisiana and theNiobrara Shale in Colorado as well as in the Canadian oil sands. Several weeks ago Gulfport did a 3 million share secondary to ...
It's been the same story since early 2010, shortly after a well named "Jake" in northern Weld County spewed its riches and subsequently touched off the fury to get the most out of the Niobrara shale formation. "It hasn't changed.
Colorado Springs Independent - John Hazlehurst -Jul 21, 2011
Much of the 21000-acre Banning Lewis Ranch, long touted as the future of Colorado Springs, is under contract to a petroleum company, which wants to extract gas from a rock formation (the Niobrara Shale) that underlies the property ("From homes to oil," ...
Advancements in drilling and completion techniques have led to renewed interest in the Niobrara oil play in the Rockies. Although the reservoir has been productive for more than 100 years, several companies have recently established sizable acreage positions in the prospective trend to take advantage of this relatively low-permeability oil reservoir using horizontal drilling and multistage-fracturing completion techniques.
With development of the play in an early stage, few well results have been made available, but those that have been released have been encouraging.
Advancements in drilling and completion techniques have led to renewed interest in the Niobrara oil play in the Rockies. Although the reservoir has been productive for more than 100 years, several companies have recently established sizable acreage positions in the prospective trend to take advantage of this relatively low-permeability oil reservoir using horizontal drilling and multistage-fracturing completion techniques. With development of the play in an early stage, few well results have been made available, but those that have been released have been encouraging.
Geology
The Upper Cretaceous Niobrara formation in the Rocky Mountain region consists of a widespread deposit of interbedded marine chalk, limestone and organic rich shale. It was deposited in the Western Interior Cretaceous Seaway that extended across much of the midcontinent of North America. The Niobrara is a self-sourced hydrocarbon system. Estimates of total organic carbon content in the Niobrara range from 1% to 7%. It is Type II marine oil-prone kerogen, which has reached thermal maturity in the deeper portions of some basins.
Oil from the Niobrara formation is produced at depths of 6,000 to 9,000-plus feet in the Denver-Julesburg (DJ), North Park and Powder River basins. Average porosity is typically less than 10% with permeability less than 0.01millidarcy (>6,000 feet). The interbedded chalk seems to be the key reservoir facies and is characterized as brittle and often naturally fractured. Fracture systems available for oil saturation were generated during or after oil expulsion. As a result of the brittle nature of the chalk, even small structural features add significant fractured enhancement to permeability. Because the Niobrara is self sourcing and the oil migrates only locally, the area of thermal maturity defines the boundary of the exploratory play.
Hydrocarbon production from the Niobrara has occurred for many years as biogenic gas in shallow regions such as eastern Colorado, northwestern Kansas, southwestern Nebraska and northcentral Montana. Oil production has come from mostly vertical wells in the deeper, more mature portions of the DJ, Powder River, and North Park basins from fields including Silo, Wattenberg, Teapot, Sage Creek and Buck Peak.
Areas of Interest
Current focus areas in the Niobrara oil play are primarily in and around Wattenberg Field in Weld County, Colorado, and in Laramie, Platte and Goshen counties, Wyoming, around Silo Field. Other spotlights are in the southern portion of the Powder River Basin, in Campbell, Converse and Natrona counties. An additional area of interest is North Park Basin in Jackson, Routt and Moffat counties, Colorado.
The play is primarily being exploited using horizontal drilling, with reported lateral lengths of 3,500 to 5,500 feet, multistage fracture stimulations and well costs of $3- to $6 million.
Competitor Analysis
The Niobrara oil play is in the early stages of investigation, with several companies expanding their acreage position in recent months. As operators in the trend develop an increased understanding of the geology and engineering (drilling, completion and stimulation approach) of the Niobrara, focused areas of interest will likely be defined.
Early movers include EOG Resources, with some 400,000-plus prospective net acres in the Niobrara. EOG holds interests in Weld and Jackson counties, Colorado, and Converse, Campbell, Goshen, Laramie and Platte counties in Wyoming. EOG’s Jake #2-01H, drilled in the northern portion of Weld County, reportedly had a 40-day average production rate of 1,000 barrels of oil equivalent per day. EOG has also drilled several wells in North Park Basin with encouraging results.
Noble Energy holds a large leasehold position of approximately 800,000 net acres, primarily in Wattenberg Field, Weld County, Colorado. Noble also has a position in Laramie County, Wyoming, which it recently acquired from Cirque Resources in a joint venture. Noble is an active driller of horizontal Niobrara wells within Wattenberg Field and is planning to expand beyond the field boundaries.
Chesapeake Energy continues to expand its position in the southern portion of the Powder River Basin in Wyoming and northern Colorado, where it holds some 400,000 net acres. Chesapeake has been targeting both the Frontier and Niobrara formations in the Powder River Basin and has drilled a couple of encouraging wells.
The company recently acquired additional Niobrara interests from American Oil & Gas.
American had reentered several existing wells in Fetter Field to perforate and fracture stimulate the Niobrara. Results of the wells were reported to have varied from 80 to more than 550 barrels of oil equivalent per day.
Additional lease holders/operators include SM Energy (some 24,000 net acres, Weld and Laramie counties); Petroleum Development Corp. (72,000 net acres in Wattenberg Field area); Fidelity Exploration and Production (80,000 net acres in Laramie and Goshen counties, Wyoming); and Anadarko Petroleum, which also has a large position in the Niobrara play by way of the Union Pacific Resources Land Grant.
