Bill Barrett Corp. said it’s closed on its $120 million purchase of an oil property in northeastern Utah’s Uinta Basin. The East Bluebell property has 25 producing wells. The company identified more than 200 drilling locations for more wells.
Bill Barrett said the property includes estimated proved oil reserves of the equivalent of 5 million barrels and is expected to produce some 750 barrels a day. The company said it intends to begin development of the property this year with a one-rig, 10-well program in July. Bill Barrett will increase its spending on development by as much as $25 million this year.
High Sierra Water Services, LLC, a subsidiary of High Sierra Energy, LP, announced it has acquired the assets of Marcum Midstream 1995-2 Business Trust and Marcum Midstream 1995-EC Holdings, LLC (collectively “Marcum”). Marcum has most recently operated as Conquest Water Services, LLC (“Conquest”). Conquest is the largest oil and gas water disposal company in Colorado, operating exclusively within the prolific Denver-Julesberg Basin in northeast Colorado.
With drilling permits on the rise in the Basin and an increasing number of oil and gas rigs drilling for oil in the Niobrara Shale, water disposal demands are escalating in Weld County, Conquest’s primary operating area. High Sierra expects to complement Conquest’s existing operations and grow the business to serve the needs of its existing and prospective producer customers.
SG Interests I, a Texas limited partnership, has sued Gunnison County leaders amidst what it alleges is an attempt to unreasonably delay oil and gas development. The natural gas extractor filed the lawsuit last Thursday in Gunnison District Court. The 35-page complaint levied by the company claims broadly that the county’s oil and gas regulations are preempted by state and federal law.
The document also claims that the county has failed to uphold its own regulatory obligations relating to the approval of “flow back” pits used for hydraulic fracturing, or “fracking,” and gas wells extending back to the middle of last year. The suit names as defendants the County Commissioners, Planning Commission chair Ramon Reed and Assistant Director of Community Development Neal Starkebaum.
Whiting Petroleum Corp lowered its second-quarter and full-year production outlook hurt by under-deliveries of carbon dioxide and adverse weather, sending the oil and gas company’s shares down 1.5 percent in trading after the bell.
Whiting lowered second-quarter production outlook to 5.75-5.85 million barrels of oil equivalent (mmboe) from 6.15-6.35 mmboe, and the Denver-based company cut its full-year production forecast to 25.15-25.55 mmboe from 25.80-26.20 mmboe.
Arête Industries, Inc. announced that it has closed a $10 million acquisition to purchase certain oil and gas operating properties in Colorado, Kansas, Wyoming, and Montana. The agreement includes an operating agreement for the continued operations of the properties by the current operator, a company owned by Charles B. Davis, a director of the Company. The properties were purchased from a company owned by Charles B. Davis and its affiliates.
Comet Ridge Ltd., (Brisbane, Australia) reported that Colorado’s vintage Florence-Canon City oil field averaged 631 b/d of oil in the quarter ended Mar. 31. The Florence project has produced more than 300,000 bbl of oil as of March 2011. The company is completing and testing five wells drilled in the current quarter.
The oil formation is mainly the Cretaceous Pierre shale at less than 4,000 ft. The company holds its acreage, in Fremont County 25 miles west of Pueblo, through Pine Ridge Oil & Gas LLC, Denver. In addition, Comet Ridge Resources LLC signed a binding agreement last month to sell its interest in the Sweet Pea exploration area in the southern Denver-Julesburg basin to an undisclosed buyer for $28.5 million. Comet Ridge Ltd. has a 17.257% equity interest in Comet Ridge Resources.