Niobrara Shale

[dan_s]

EOG and CRZO give us exposure to the Niobrara.

From Energy and Capital:

The Niobrara Formation
Haven't heard of it yet? Don't worry, you will.
In fact, most shale plays across the United States tend to take a backseat in the media to areas like the Bakken, Marcellus, and even Haynesville formations.
Within the next few years, however, I have a feeling investors will feel differently.
Located in the Denver-Julesburg basin, the Niobrara shale formation is one of the up-and-coming shale plays beginning to get some attention. The formation encompasses Northeast Colorado, as well as parts of Wyoming, Nebraska, and Kansas.
The Denver-Jules Basin isn't the smallest shale play in the U.S. The Wattenberg field is actually the seventh largest in the country when it comes to proved gas reserves, and ninth on the list in terms of production.
Also, like every other shale formation, producers are taking advantage of horizontal drilling and fracturing techniques to tap into the rock. These wells don't come cheap; wells can cost several million dollars apiece.
Although we shouldn't be expecting to see the same kind of activity right now compared to North Dakota, there's no doubt that it's on the rise in the Niobrara. During 2010, Weld County, Colorado, approved more than 200 drilling permits. By the end of the year, about one-third of those wells were drilled and started production.
At their current pace, Weld County could issue more than 400 permits in 2011.
Of course, it all began with Jake. That was the name of EOG Resources' wildcat well that pumped out 50,000 barrels of oil in the first three months in 2009.
The company currently has a three-rig drilling program in the play on their 300,000 net acres and plan to drill another

[bearcatbob]

I think Petroquest also has interests in this play. Is that right?

Bob

[dan_s]

PQ is on our Watch List and we will be publishing a company profile and forecast soon. Premium Membership is needed to access these reports. - Dan

From the most recent PQ presentation: They only have 5,000 net acres in the Niobrara.

Niobrara program provides exposure to 25% of ~ 20,000 acres
Nevis #2 well completed during November 2010 – 24 hour IP rate of 831 Bbls of oil per day
Hester #3 well projected to spud in 1Q11
10-15 gross wells planned for 2011
Actively pursuing additional leasing opportunities