WATTENBERG PR JECT
Apollo is engaged in drilling low risk Codell, Niobrara, and J-Sand (the "Formations") oil & gas wells in the northern portion of the Wattenberg field in the DJ basin (see Figure 1). The Wattenberg field is the sixth largest oil & natural gas field in the United States and has been the leading productive field within Colorado’s DJ basin since the late 1970’s. There are currently over 13,000 active wells in the field. The Formations are Cretaceous aged deposits covering large portions of the Eastern Plains of Colorado. The Formations are tight sands and shales that collectively produce both oil and gas, are typically stimulated with hydraulic fracturing, and have a success rate of over 98.9%. The majority of wells in the Wattenberg field are re-fractured or re-stimulated using an elliptical model for greater recovery of reserves (see Figure 2). Re-fracturing and the use of low cost "slick-water fracs" (as opposed to a conventional "gel-based fracs") further the economic feasibility of Apollo's Wattenberg Project. The Colorado Oil and Gas Conservation Commission ("COGCC") rule 318(a) generally allows for eight (8) wells per 160 acres, or thirty two (32) per section within the majority of the Greater Wattenberg Area ("GWA") (see Figure 3). In addition to its existing wells, Apollo plans to drill 50 + wells in the Wattenberg field and/or the greater DJ Basin over the next three years.
Figure 2 – DJ Basin formations graphic depicting various depths and stimulation(s).
Figure 1 - Regional well map of the Wattenberg field in the Denver Julesburg Basin, Weld County, Colorado.
Colorado Oil and Gas Conservation Commission rule 318(a) governs the placement of oil and gas well locations in Colorado's Wattenberg field.
For full viewing of all COGCC rules and regulations go to: http://oil-gas.state.co.us
Wells are generally located in the center of a regular 40 acre aliquot, while fifth spot wells are generally located in the center of a regular 160 acre aliquot.
Figure 3 – Well spacing diagram: Based on a Section, of a Range, of a Township
As per COGCC rule 318(a) (COGCC 300 series rules), a number of legal well locations are permitable in any given section as diagramed above. In general, wells are drilled in the center of each 40 acre quarter-quarter section (see "Wells" above), and in the center of each 160 acre quarter section (see "Fifth Spot Wells" above). In addition, there are a 320 acre drill unit center spots and section line wells that are also allowable under COGCC rules (see "Section Line Wells" and "Center Spot - 320 Program Wells" above).
"Apollo has a simplistic goal: synergistic, low cost, fast paced, dynamic development of low risk energy, oil, and gas assets to quickly generate cash flow and return on investment”.
Jesse L. White, CPL
