Carrizo recently presented at the Johnson Rice and Company Energy Conference on their shale operations, including their 58,000 acre Niobrara program. They discussed how they took a look at the gassy Niobrara a few years back but weren’t impressed enough to buy in. It wasn’t until EOG blew it open with the Jake well that they got the ball rolling. They have a standard for acreage to be purchased based on a formula taking into account thickness, porosity, and resistivity which, because there have been vertical penetrations all through the Niobrara, can be determined with historical well logs.
They estimate $3.4MM to drill and complete, much less than say the Eagle Ford or Haynesville. A large amount of that will come from the use of swell packers. Days to drill will be about 15. One other nice stat, they got in for less than $300 per acre. That same acreage now is worth an order of magnitude higher.
Here is a map of the Weld County Colorado permits filed since September 2010. Of the 276, most are in Wattenberg, but a good amount have been issued in the northern area by companies such as EOG, Carrizo, Noble, Slawson and PDC.
Here is a slide form their Credit Suisse presentation showing their lease position.
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