IN THE MATTER OF THE PROMULGATION AND
CAUSE NOS. 499 and 232
ESTABLISHMENT OF FIELD RULES TO GOVERN
OPERATIONS IN THE WATTENBERG FIELD AND
ORDER NOS. 499-65
THE WATTENBERG GAS SPACED AREA,
and 232-221
WELD COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:30 a.m. on March 31,
1998, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver,
Colorado, after giving Notice of Hearing, as required by law on the verified
application of Patina Oil & Gas Corporation for an order to allow two (2) wells
to be drilled at exception locations for production of gas and associated
hydrocarbons from the Dakota Formation and as third wells for production of gas
and associated hydrocarbons from the "J" Sand Formation for the 320-acre
drilling and spacing units described. Said wells shall be located in the center
of the 40-acre tract or quarter-quarter with a tolerance of 200 feet in any
direction. The Applicant also seeks an order to allow the Putnam W 29-9Ji Well
to be drilled as the third well in the center of the NE¼ SE¼ of Section 29,
Township 2 North, Range 66 West, 6th P.M., with a tolerance of 200 feet in any
direction, for production of gas and associated hydrocarbons from the "J" Sand
Formation for the 320-acre drilling and spacing unit consisting of the S½ of
said Section 29.
FINDINGS
The Commission finds as follows:
1. Patina Oil & Gas Corporation, as applicant herein, is an interested party in
the subject matter of the above referenced hearing.
2. Due notice of the time, place and purpose of the hearing has been given in
all respects as required by law.
3. The Commission has jurisdiction over the subject matter embraced in said
Notice, and of the parties interested therein, and jurisdiction to promulgate
the hereinafter prescribed order.
4. In Order No. 499-1, the Commission established 320-acre drilling and spacing
units for the production of oil, gas and associated hydrocarbons from the Dakota
Formation in certain lands, with the 320-acre drilling and spacing units to be
identical to those previously established for the "J" Sand Formation under Cause
No. 232, with the permitted wells to be located in the NW¼ and the SE¼ of the
section and no closer than 990 feet from the boundaries of the quarter section.
In Order Nos. 499-15, 232-89, 407-125, 493-22 and 496-3, the Commission
established 320-acre drilling and spacing units for certain lands previously not
spaced in the lands covered by Cause No. 232, for production from the Dakota
Formation to allow the recompletion and downhole commingling of production from
the Dakota, "J" Sand, Codell, Niobrara, Sussex and Shannon Formations.
5. In Cause No. 232, the Commission established 320-acre drilling and spacing
units for the production of gas from the “J” Sand Formation in the Wattenberg
Field with one well allowed for each unit to be located in the NE¼ and the SW¼
and no closer than 990 feet to the boundaries of the quarter section. Additional
orders allowed the drilling of a second well on each 320-acre drilling unit.
6. The Applicant requests approval for the below-listed wells be drilled at
exception locations for production of gas and associated hydrocarbons from the
Dakota Formation and as third wells for production of gas and associated
hydrocarbons from the "J" Sand Formation for the 320-acre drilling and spacing
units described. Said wells shall be located in the center of the 40-acre tract
or quarter-quarter with a tolerance of 200 feet in any direction.
Proposed Well Location 320-acre unit
Shivers W 29-6Ji SE¼ NW¼ Sec 29-2N-66W N½
Cavey U 24-4Ji NW¼ NW¼ Sec 24-2N-68W N½
7. The Applicant also requests approval for the Putnam W 29-9Ji Well to be
drilled as the third well in the center of the NE¼ SE¼ of Section 29, Township 2
North, Range 66 West, 6th P.M., with a tolerance of 200 feet in any direction,
for production of gas and associated hydrocarbons from the "J" Sand Formation
for the 320-acre drilling and spacing unit consisting of the S½ of said Section
29.
8. Evidence submitted by the Applicant and reviewed by the Hearing Officer shows
that the original gas in place ranges from 2.8 BCF to 3.1 BCF and that the
estimated ultimate recovery from the two existing “J” Sand Formation wells in
each specified 320-acre drilling and spacing unit ranges from 0.5 BCF to 0.86
BCF, which equates to recovery factors ranging from 22.1% to 34.5%.
9. The applicant agrees to request Commission approval not before six (6) months
from the date production is obtained from the “J” Sand Formation to recomplete
the well to the Dakota Formation at an exception location and to the Codell,
Niobrara, Sussex or Shannon Formations and commingle production from these
formations with production from the “J” Sand Formation. A bottomhole pressure
test of the "J" Sand Formation will not be obtained.
10. That in order to prevent waste and protect the correlative rights, an
additional well is necessary to recover remaining "J" Sand Formation reserves.
11. The Applicant agreed to be bound by oral order of the Commission.
12. Based on the facts stated in the application, having received no protests
and having been heard by the Hearing Officer who recommends approval of the
application, an order of the Commission should be entered amending Order Nos.
499-1 and 232-89, allowing the wells described in Finding #6, to be drilled at
exception locations for production of gas and associated hydrocarbons from the
Dakota Formation and as third wells for production of gas and associated
hydrocarbons from the "J" Sand Formation for the 320-acre drilling and spacing
units described. Said wells shall be located in the center of the 40-acre tract
or quarter-quarter with a tolerance of 200 feet in any direction. The Applicant
also seeks an order to allow the Putnam W 29-9Ji Well to be drilled as the third
well in the center of the NE¼ SE¼ of Section 29, Township 2 North, Range 66
West, 6th P.M., with a tolerance of 200 feet in any direction, for production of
gas and associated hydrocarbons from the "J" Sand Formation, for the 320-acre
drilling and spacing unit consisting of the S½ of said Section 29
ORDER
NOW, THEREFORE, IT IS ORDERED, that Order Nos. 499-1 and 232-89 are hereby
amended, to allow the below-listed wells to be drilled at exception locations
for production of gas and associated hydrocarbons from the Dakota Formation and
as third wells for production of gas and associated hydrocarbons from the "J"
Sand Formation for the 320-acre drilling and spacing units described. Said wells
shall be located in the center of the 40-acre tract or quarter-quarter with a
tolerance of 200 feet in any direction.
Proposed Well Location 320-acre unit
Shivers W 29-6Ji SE¼ NW¼ Sec 29-2N-66W N½
Cavey U 24-4Ji NW¼ NW¼ Sec 24-2N-68W N½
IT IS FURTHER ORDERED, that the Putnam W 29-9Ji Well shall be allowed to be
drilled as the third well in the center of the NE¼ SE¼ of Section 29, Township 2
North, Range 66 West, 6th P.M., with a tolerance of 200 feet in any direction,
for production of gas and associated hydrocarbons from the "J" Sand Formation,
for the 320-acre drilling and spacing unit consisting of the S½ of said Section
29
IT IS FURTHER ORDERED, that the provisions contained in the above order shall
become effective forthwith.
IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after
notice and hearing, to alter, amend or repeal any and/or all of the above
orders.
ENTERED this 13th day of April, 1998, as of March 31, 1998.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Patricia C. Beaver, Secretary
Dated at Suite 801 1120 Lincoln Street Denver, Colorado 80203 April 13, 1998
(232-221)