Voyager and Slawson announced a DJ Basin Niobrara joint venture earlier this summer. It comprises 44,000 net acres with a 50/50 split working interest. I brought up a map of their 2010 permits and layered it with 2010 EOG permits to get an idea of where they are in relation to the hot activity in the play. For those of you unfamiliar with the current DJ Basin Niobrara activity, the EOG Jake well sort of set off the current craze producing greater than 50 MBo in the first 90 days at the end of 2009. I included this data point on the map.
Voyager reported that the Moonshine and Outlaw have both experienced significant hydrocarbon shows with the already completed Moonshine currently flowing at 480 Bopd with a 95% oil cut. The Outlaw is scheduled for stimulation the week of the 22nd, with expected results similar to the Moonshine.
They also stated that surface casing has already been set for 22 additional wells offset to these two promising wells. They estimate drilling and completion costs to be about $3.2MM per location, $1MM less than original quotes.
Much of the current DJ Basin activity is still unproven. EOG has not given many details regarding their activity citing questions as to whether production can be sustained through matrix-flow, or if the production is natural fracture dominated and lacking matrix flow. The area between historical fields Wattenberg, in southern Weld County, and Silo ,in central Laramie County, is one area of significant interest. This is the area where Slawson and Voyager are working. The area in SE Wyoming, northeast of Silo is another important area where EOG and Chesapeake are active to name a few.
I am working to provide some information about other areas of the Niobrara outside of the DJ Basin. Companies such as Whiting, Double Eagle and Entek are working other areas of the play which are showing promise as well. Look for this info in later postings or you can visit the Niobrara Unconventional Update where saved searches and non-regulatory information are in place throughout the trend.