American Oil and Gas Reporter - September 2016 - 69

SpecialReport: Horizontal & Innovative Drilling
Greater Natural Buttes area in the Uinta
Basin. Walters says the company is producing more than 400 million cubic feet
a day of mostly dry gas from the Greater
Natural Buttes.
"That is primarily a gas play," he says.
"We had been drilling mostly infill wells,
but it needs better prices before we will allocate additional capital to the field."
Anadarko owns 4.2 million acres of
mineral rights in Wyoming alone, making
it the largest private mineral owner in the
state. That includes acreage in the Greater
Green River Basin in the southwestern part
of the state as well as the Powder River
Basin. Walters says the company's production from the Greater Green River Basin
is a mix of oil and natural gas, while it is
more oil in the Moxa and Laramie County, Wy., fields in the Powder River Basin.
"We are testing multiple formations in
the Power River Basin," Walters observes.
"We are targeting three primary horizons: the Niobrara, the Turner, and the
Mowry."
However, he says the company still
needs more price recovery before it will
increase activity in Wyoming. Because of
the infrastructure buildup when gas prices
were higher, Walters says there is more
than adequate take-away capacity throughout the Rockies.

in mitigating impacts to surrounding communities.
Since that Anadarko-Noble Energy
swap, there have been several similar
transactions this summer.
On June 16, PDC Energy and Noble
Energy announced a "strategic acreage
trade" in the core Wattenberg Field. Transaction closing is expected early in the
fourth quarter. PDC's Brookman calls the
swap a win for both companies.
"The anticipated trade creates significant operational efficiencies and incremental value for both PDC and Noble by consolidating our operated acreage positions
in this premier field," he states. "This will
enable us to design more comprehensive,
long-term development plans, capture
operational synergies, and streamline
marketing and midstream. Most significantly, the proposed trade increases opportunities for longer laterals with significantly increased working interests, all while
minimizing surface impact."
Brookman says PDC expects to receive
13,500 net acres in its middle core from
Noble's Bronco area in exchange for
11,700 net acres alongside Noble's Wells
Ranch development. The difference in net
acres, Brookman says, is primarily the result of variances in net revenue interests.
Charles J. Rimer, Noble Energy's sen-

ior vice president, U.S. onshore, says,
"This strategic acreage exchange expands
our Wells Ranch position by approximately 20 percent, and provides substantial operating synergies and cost efficiencies for
both ourselves and PDC Energy. The
trade simplifies long-term development of
the DJ Basin, adds significant incremental value to Noble Energy, and optimizes
our infrastructure.
"Noble Energy's new acreage materially increases our long-lateral drilling
opportunities in our Wells Ranch development area," Rimer adds. "Further, the higher contiguous acreage positions for both
companies should result in fewer surface
locations."
In another deal, Synergy Resources
Corp. announced June 14 that it had
closed its Greeley Crescent acquisition
from Noble Energy for 33,100 net acres
and 800 boe/d production in the core Wattenberg Field in and around Greeley.
Synergy's announcement said the acquired lands were largely contiguous, allowing for longer lateral lengths and efficient development of infrastructure.
Synergy's drilling locations will target the
Niobrara A, B and C, and Codell zones.
Synergy also announced it had entered
definitive purchase and sale agreements
with two private entities in separate trans-

Acreage Swaps
There have been a number of acreage
trades between operators in the DJ Basin's
Wattenberg Field, beginning with a land
swap between Anadarko and Noble Energy in 2013. Walters says such deals make
sense for both parties.
"It is a win-win when you have a core
position, which gives you more efficiency," he explains. "How we put together a
core area is important."
For example, Walters says that because
of its core leasehold after its 2013 deal,
Anadarko has been able to institute a water-on-demand system as well as an oilgathering system that allows it to move
80,000 barrels of oil daily by pipeline
rather than by truck. He notes that much
of the work in the DJ Basin is along Interstate 25 in the urban areas north of Denver, making it even more important to keep
infrastructure consolidated and to invest

Bill Barrett Corporation has 59,500 net acres in the Denver-Julesburg Basin, of which 50,000
are located in the Northeast Wattenberg Field in Weld County, Co. The company reports
moving from 4,200-foot to 9,500-foot laterals over the past couple years while cutting drilling
and completion costs by 20 percent and doubling average per-well production.

SEPTEMBER 2016 69

American Oil and Gas Reporter - September 2016

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