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Piceance Basin Natural Gas Development Program

Piceance Basin Natural Gas Development Program. Northwest Colorado Oil & Gas Forum Presented by: Michael DeBerry September 4, 2008. Piceance Natural Gas Program Update. Two Recent Hand Injuries that Required Medical Attention 83 Wells on 4 Pads Have Been Drilled to Date

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Piceance Basin Natural Gas Development Program

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  1. Piceance BasinNatural Gas Development Program Northwest Colorado Oil & Gas Forum Presented by: Michael DeBerry September 4, 2008

  2. Piceance Natural Gas Program Update • Two Recent Hand Injuries that Required Medical Attention • 83 Wells on 4 Pads Have Been Drilled to Date • H&P Rig 318 Celebrated One Year Injury Free • KSI (Construction Contractor) Completed One Year Injury Free • 30 Inch Sales Pipeline Completed in August 2008 • Currently Flowing 5MMCFD • Gas is Being Processed by Enterprise • Enhanced Performance Through Technology/Process Improvements

  3. Well Design • TD – 200’ below the WF. Average TVD ~ 5,800’. • KOP – Minimum 200’ • Max Build Rate – 3o / 100’ • Max Inclination – 40o • Max Drop Rate - 2o / 100’ • Average Departure ~ 1100’. • Section 25 shown with 64, 10 acre wells hit from three pads in valley location.

  4. Piceance Natural Gas Program Update cont. • ESHIA Being Implemented into Project Management Plan • Plan Replaced Produced Water Pond with Tanks • Steadily Expanding Environmental Monitoring Programs – Water Quality and Wildlife • Finalized $25M Agreement with Garfield County for CR 204 • Granted a $45K Grant to the De Beque School District for a Computer Lab, Software and Hardware

  5. Piceance Natural Gas Program Update cont. • Partnering with the Tamarisk Coalition on the Watson Island Project • Eradication and Re-vegetation along a 70 mile stretch of the Colorado River • Major Sponsor for the Robb River Rally on Sept. 13th • A Community Biking/Running Event to Continue the Vision of Completing a Trail System Along the Colorado River from Garfield County to Utah and from Grand Junction to Delta along the Gunnison River

  6. The Future of the Piceance Program • Continue Operating the Current Two Drilling Rigs Until Mid 2010. • Continue Infrastructure Installation in the Clear Creek Valley. • Central Production Facility Commissioning Targeted for Second Quarter 2009. • Continue Interim Production Operations Until Facility Commissioning. • Limited Well Completion Activity Until Second Quarter 2009.

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