The Niobrara Shale is an emerging oil play in the Rockies that is being pioneered by many of the same companies who were leaders in developing the Barnett, Haynesville, Marcellus and Bakken shales. With established Niobrara oil and gas production in many areas of the Rockies from older vertical wells, advanced horizontal drilling and completion methods are now being utilized. In Wyoming the Niobrara has been notably productive for years at Teapot Dome, Silo field and Salt Creek.
The industry’s early leasing and drilling activities have been focused on the DJ and Powder River Basins. EOG and Chesapeak have been leaders in the Rockies’ Niobrara plays. Other independents have acquired over 1.5 million acres, and drilling is ramping up in these basins.
Niobrara oil discoveries and additional drilling have also been reported in north central Colorado, about 100 miles southeast of Double Eagle’s Atlantic Rim acreage. Several Niobrara tests have been permitted 80-90 miles east of the Atlantic Rim.
Existing Niobrara production from the Sierra Madre field in southern Wyoming is approximately 20 miles southeast of Double Eagle’s Catalina Unit. Discovered with older drilling and completion methods in the early 1980’s, the Sierra Madre has produced over 1.3 million barrels of oil from the Niobrara.
The Espy field was discovered in 1964, and it lies within the northeast boundary of the Atlantic Rim project area. Its cumulative Niobrara oil production is over 1 mill bbls.
Double Eagle owns over 90,000 gross and 70,000 net acres in Niobrara Oil window. The Company's acreage includes 39,000 net acres in the Atlantic Rim area, 9,000 acres in the DJ Basin of Wyoming and Nebraska, 15,600 net acres in the Powder River Basin and 8,700 net acres in the Laramie/Hanna Basin. Some of this acreage may also have production potential from formations other than the Niobrara. Under the company’s Atlantic Rim acreage, the depth of the Niobrara ranges from 4,000’ to 10,000’, while its thickness varies up to approximately 1,500’.
The Company has filed for two drilling permits and plans to conduct drilling into the Niobrara formation in 2011 once drilling stipulations have lifted and permit approval is received.
For additional information regarding the Niobrara Formation, please refer to the below external links. (Please note that Double Eagle does not ensure the accuracy or completeness of the information contained in any of the below sites .)
US Geologic Study of the Niobrara Formation in Wyoming
http://pubs.usgs.gov/dds/dds-069/dds-069-d/REPORTS/69_D_CH_6.pdf
Hart Unconventional Gas Website
http://www.ugcenter.com/Shales/US/Niobrara/?qlink
Drilling Info, Industry Website
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