Zach Koppang | Shale Plays Media
EnerJex Resources, an independent exploration and production company, has announced updates on its drilling and development activities in Colorado and Kansas.
In the Niobrara formation EnerJex has recently tested a second confirmation well located on a different subsurface structure about one mile away from the well it had previously reported on. The test results were consistent with the results of the first well, achieving an initial production rate of more than 600 thousand cubic feet of natural gas (Mcf) per day at a depth of about 2,900 feet.
EnerJex has filed for 17 drilling permits in Sedgwick County, Colorado, after using 3D seismic analysis to identify numerous high-ranked drilling locations. Development plans are moving forward and the company hopes to drill 17 wells during the fourth quarter and to begin production by the end of the year.
The Niobrara formation is believed to be particularly attractive based on the formation’s greater depth and higher reservoir pressure when compared to EnerJex’s existing areas of operation. In its 55,000 acres of land in the Niobrara formation, more than 150 high-ranked drilling locations have been identified. In the past, wells in this formation have yielded approximate success rates of 90%. The acreage is also located in close proximity to the 1,679-mile Rocky Mountain Express pipeline as well as the 436-mile Trailblazer pipeline.
In their Adena Field project in Morgan County, Colorado, oil production on multiple wells has been reactivated. Following a collapse of oil prices in the mid-1980s, nearly all of the producing wells in the Adena Field were temporarily abandoned during the secondary recovery phase. On EnerJex acreage in this region, there are approximately 120 wells that are currently shut-in or abandoned. Currently, about 75 wells have been identified as candidates for reactivation and recompletion.
In a press release, EnerJex’s chief executive officer, Robert Watson Jr., commented:
“EnerJex is aggressively developing its vast portfolio of drilling opportunities across multiple projects, and I expect this accelerated drilling program to drive significant growth in production, cash flow, and reserve value. In addition, management continues to evaluate numerous potential strategic opportunities to create and unlock value for stockholders on a per-share basis.”
Additional to their operations in Colorado, EnerJex says new drillings rigs are being deployed in Kansas. In Woodson County, Kansas, hundreds of vertical drilling locations have been identified in the Mississippian formation at a depth of roughly 1,700 feet. In Franklin and Miami Counties, Kansas, operations are being prepared for drilling into the Cherokee formation at a depth of about 650 feet. Wells within these formations have had a success rate of higher than 95% in the past and hold promise for cost-effective production values.