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With HNR's 46,000 net acres, assume that 23,000 net acres are in a good productive trend for the Greenriver Wasatch oil...The 128 net wells using the 23,000 net acre assumption could produce over 50 million barrels of oil.<<
Sounds very good. But how about the MB Extension in the south? Latest comments from HNR seem to indicate that it continues farther than expected onto their lands. They could be even more lucrative if EURs are reasonable. NFX sure seems to like it.
This is from NFX's Q2 and Q3 comments
Monument Butte Field Area - Gross oil production from the Monument Butte field area reached record production of 22,600 BOPD in mid July 2010, an increase of approximately 30% since year-end 2009. Field production is expected to exit 2010 at approximately 25,000 BOPD gross, representing annual production growth of more than 25%. Firm sales agreements for the Company's Monument Butte crude oil are in place on 95% of 2010's estimated oil volumes and approximately 85% of 2011's estimated oil volumes.
Increasing production is primarily attributable to improved drilling efficiencies. The Company recently set a drilling record (rig-up to rig-release) of 2.8 days on a 20-acre directional well. This compares to a 2009 average of 5.5 days and an average of approximately 6.5 days when Newfield acquired the field in 2004. Year-to-date average performance is 4.5 days. Recent gross well costs in Monument Butte range from $700,000 - $900,000. The Company is operating five rigs today and expects to drill about 375 wells in 2010.
Newfield continues to drill step out wells assessing its northern extension acreage which covers 63,000 net acres adjacent to the Greater Monument Butte Unit. Newfield has drilled 220 wells to date on the acreage and results continue to exceed expectations. A recent completion averaged 350 BOPD over its first 30-days on line. Newfield's average working interest on this acreage is approximately 70%.
The Monument Butte field area covers approximately 180,000 net acres. Newfield estimates that approximately 4,700 development drilling locations remain
Q3 comments:
Monument Butte Field Area - Gross oil production from the Monument Butte field area has increased nearly 5,000 BOPD since the beginning of 2010. With a five operated rig program, Newfield is on track to drill a record 375 wells in the Monument Butte field in 2010. Newfield expects that it will average less than five days to drill and case a well in 2010. Recent completed well costs in Monument Butte continue to range from $700,000 - $900,000 (gross).
Recent drilling has focused on assessing the Company's northern extension acreage which covers 73,000 gross acres adjacent to the Greater Monument Butte Unit. Newfield has drilled more than 250 wells to date in this area and has successfully assessed more than 25% of the northern extension acreage. Newfield's average working interest on the northern acreage is approximately 70%.
Based on its current pace of drilling activities, Monument Butte production is expected to grow about 20% in 2011 and firm oil sales agreements are in place on approximately 85% of the expected volumes. Newfield continues to work with area refiners and expects sufficient refining capacity to be in place in 2011 and beyond.
The Monument Butte field area covers approximately 180,000 gross acres. Newfield estimates that approximately 4,700 development drilling locations remain.