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DJ/Wattenberg |
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| The Wattenberg field is the sixth largest oil and natural gas field in the United States and has been the leading productive field within Colorado's DJ basin since the late 1970s. |
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Apollo Operating is engaged in drilling low-risk Codell, Niobrara, and J-Sand (the "Formations") oil and gas wells in the Wattenberg field in the DJ basin (see Figure 1). The Wattenberg field is the sixth largest oil and natural gas field in the United States and has been the leading productive field within Colorado’s DJ basin since the late 1970s. There are currently over 13,000 active wells in the field. |
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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 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). |
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As per COGCC rule 318(a) (COGCC 300 series rules), a number of legal well locations are permitable in any given section as diagramed below in Figure 3. In general, wells are drilled in the center of each 40-acre quarter-quarter section (Figure 3, Wells), and in the center of each 160-acre quarter section (Figure 3, Fifth Spot Wells). In addition, there are a 320-acre drill-unit-center spots (Figure 3, Center Spot Wells) and section line wells (Figure 3, Section Line Wells) that are also allowable under COGCC rules. However, in certain instances, directional and horizontal drilling can help limit the footprint of Apollo's drilling operations. |
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