Heidelberg/Denver. Deutsche Rohstoff and the management of its US subsidiary Elster Oil and Gas (EOG) are preparing for the drilling of 9 non-operated horizontal wells in the Magpie Project Area, Wattenberg Field, DJ Basin of Colorado beginning mid February, of 2015. Net drilling capital expenditures by EOG will total approximately USD19 million based on average net WI of 44% in five 1.5 mile laterals and four 1.0 mile laterals.
Currently, the wells are anticipated to begin production in July, 2015 with forecasted total gross reserve recovery of 4.5 million barrels of oil equivalent. These 9 horizontal wells are the first of 49 horizontals currently planned for development of the Magpie area.
Bob Gardner, CEO of EOG and Cub Creek Energy commented: “Elster’s Magpie Project Area is a low risk development opportunity in the Wattenberg Field that offers the opportunity to yield positive financial results in the current oil commodity pricing environment. These 9 horizontal wells demonstrate the company strategy of developing economically robust projects at lower oil prices.”
Heidelberg, 22 December 2014