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Extraction Oil & Gas announced today that it has filed for bankruptcy protection in a Delaware court which will allow it to reorganize its debt and gain a fresh start upon its exit. The Denver-based firm was expecting to be cash-flow-positive this year but instead finds itself dealing with significantly lower commodity prices as a result of the COVID-19 pandemic that has slowed the world's largest economies. Founded in 2012, Extraction said in earnings reports filed in May that it produced just over 38,500 B/D last quarter, primarily from Colorado's Wattenberg field that lies within the Denver-Julesburg Basin. The firm also reported a net income of $9 million compared with a debt load nearing $1.5 billion. That same month, Extraction withdrew its 2020 guidance as it missed an interest payment on bonds that do not expire until 2024, triggering a 30-day grace period that allowed the company time to mull its options.
Reusing waste water from the oil field for hydraulic fracturing has become an important topic in the oil and gas industry, and it requires a thorough understanding of both the quality and quantity of the waste water. In this paper, water production from horizontal shale wells in five sections of the Wattenberg field in northeastern Colorado was analyzed. Models were developed for these wells for future water-production prediction. A spatial analysis was also conducted by comparing water production from each section with the gas/oil-ratio (GOR) value for each well. Results indicate that the GOR value of wells has a significant impact on water production in the first year of operation.
When I think of how my career development has evolved, the decisions that made a difference were those that led to taking on something completely different and outside my comfort zone. I was a chemical engineer and wasn't trained in petroleum engineering. I started out in the midstream part of the business, handling gas processing and designing and building gas plants. I stayed in the projects and facilities part of the business for the first 8 or 9 years of my career, and then I had an opportunity to manage a reservoir engineering group in one of our districts. I didn't know a thing about it, but it gave me a chance to move into the so-called "black oil" end of the business.
Chesapeake Energy is partnering with RS Energy Group to improve operational efficiency and capital discipline by employing advanced analytics and machine learning. RS Energy is a Calgary-based energy research firm founded in 1998 covering more than 150 operators in the major North American and international oil and gas regions, including the US shale plays. It provides technical analysis of basins, including completions and production, as well as asset evaluations for operators considering acreage additions. All of this is done within the context of shifting capital markets. Chesapeake announced the pact fresh off its $4-billion merger with WildHorse Resource Development, which bolstered its position in the Eagle Ford Shale of South Texas.
Since selling its assets in the Marcellus in 2014, PDC Energy has undergone a major strategic shift in its hydraulic fracturing operations, focusing primarily on its acreage in Colorado's Wattenberg field while entering the Delaware Basin in west Texas. As the independent exploration and production company enters the third year of this new operational focus, its top executive said there is plenty of reason for optimism. Speaking at a luncheon co-hosted by the Independent Petroleum Association of America and the Texas Independent Producers and Royalty Owners Association, PDC President and Chief Executive Officer Bart Brookman gave an overview of recent developments at the company. Brookman described the Wattenberg as a highly productive region for PDC, and that the company hopes to increase efficiency in the operation of its 96,000 acres. Brookman said the company plans to drill each new well with monobore technology, saving approximately 1 day in spud-to-release times.
The authors used a high-quality digital-log data set to characterize reservoir quality accurately in the Niobrara and Codell Formations in the Denver-Julesberg (DJ) Basin. A petrophysical work flow was developed, and detailed mapping of the reservoir attributes was completed. The log-derived parameters, along with an aeromagnetic and vitrinite-reflectance data set, provided excellent insight into which geologic parameters could be tied best to well-production response. In 2013, the authors began to evaluate production response in an area where nearly 50 Niobrara wells were completed by a single operator with a similar completion design for all wells. There was a wide variation in production results after 180 days of production, ranging from 4 to 16 BOE/lateral ft. The amount of proppant pumped per lateral foot changed very little and ranged between 800 and approximately 1,000 lbm/ft.
Colorado oil production is surging to record levels, outpacing the other major producing US states in year-over-year gains on the backs of the steady-and-predictable Denver-Julesburg (DJ) Basin and overlapping Niobrara Shale. As overall US oil output continues to surge, attention has been drawn to the Permian Basin and SCOOP and STACK plays. Operators have flocked to West Texas, southeastern New Mexico, and central Oklahoma to stake claims to land they believe will usher them into a new, leaner era for the industry. The expansive Permian alone, which covers more than 75,000 sq miles, has accounted for the bulk of US oil production increases and mergers and acquisitions over the last couple of years. Although they are intertwined and together encompass parts of Colorado border states Wyoming, Nebraska, and Kansas, the DJ and Niobrara offer a fraction of the acreage and prospective resources of the Permian.
This paper describes a comprehensive field study of eight horizontal wells deployed in the stacked Niobrara and Codell reservoirs in the Wattenberg Field (Denver-Julesburg Basin). The overall goal was to understand the geometry of the hydraulic fractures (propped) and the producing volume with respect to completions design, target reservoirs, and well spacing. Through this understanding, the asset can be developed more effectively and economically. The Wattenberg Field is a basin-center petroleum accumulation located northeast of Denver, from which hydrocarbons have been extracted over the last 50 years. Development in the Wattenberg Field began in 1970 from vertical J‑Sandstone wells, with production of the Niobrara following in 1976.