American Oil and Gas Reporter - February 2016 - 75

by reducing water supply and disposal
costs, James suggests. "By treating produced water, you can recycle it for boiler
feed water, convert it to steam and reinject it into the ground while requiring
little additional water," he says.
In terms of capex, James says a good
SAGD project typically costs about
$50,000 per barrel of oil produced daily,
but Oak Point's plants cost a third of
that.
James says he continues to find interest
in heavy-oil producing areas, including
California's San Joaquin Valley, where
some operators want to achieve at least
50 percent water recycling to address the
severe water shortages experienced in
that region.
The units also can be used to treat
water for reuse in hydraulic fracturing,
he observes, "Treating produced/flowback
water to reuse for oil and gas production
or agricultural purposes reduces the high
costs associated with water handling and
provides an important new source of
freshwater," James says. "Their ability
to treat and sterilize (by boiling) water
for recycling makes the units appealing
to the food processing industry as well."❒

SG Interests Well Shows
Piceance Basin Potential
GRAND JUNCTION, CO.-A well
drilled by SG Interests recorded an initial
production rate of 7 million cubic feet a
day using a 700-foot lateral and a strong
choke, says the West Slope Chapter of the
Colorado Oil & Gas Association.
According to media reports, production from the well in the Mancos formation near the disputed Thompson Divide
is prolific, while a well drilled in Gunnison County had similar results. The association says companies drilling in the
Piceance Basin continue having success
in the Mancos Shale, and the Thompson
Divide area reflects the regional success.
David Ludlam, executive director of
the West Slope COGA chapter, says producers want to counter what they term a
false report by anti-drilling groups that
say there is not enough natural gas in the
area for economic production.
The Bureau of Land Management decided in December to ban further oil and
gas leasing in the White River National
Forest, which includes the Thompson Divide.
Ludlam says the new well data is significant for oil and gas activity on the
West Slope, where eight companies are
harmed by the prospect of BLM retroactively cancelling their leases.
❒

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American Oil and Gas Reporter - February 2016

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