American Oil and Gas Reporter - July 2018 - 96

SpecialReport: Rockies Profile
Brookman states. "This enables PDC to
unbundle production."
The Mewbourn 3 project in Weld
County, Co., includes the next phase of
DCP's Grand Parkway low-pressure gathering and associated compression assets,
which also are expected to be completed
by the end of 2018. Total capital investment
for the plant and associated gathering is
expected to be $395 million.
Wouter van Kempen, president, chief
executive officer and chairman of DCP
Midstream LP, points out, "We will add
1.5 Bcf/d of capacity over the next number
of years. We will add 500 MMcf/d of capacity over the next 12 months."
The O'Connor 2 plant expansion,
which will add another 300 MMcf/d on
top of the Mewbourn 3 plant's 200
MMcf/d, is expected to become operational
in the second quarter of 2019. In addition
to its 200 MMcf/d of processing capacity,
the O'Connor 2 expansion will add 100
MMcf/d of bypassed capacity.
"Bypassed gas is untreated gas that
we will route around the plant," van Kempen explains. "It will be mixed with
processed gas at the plant's tailgate to
make it meet pipeline specifications. We
aren't taking the ethane and butane out,
but it creates additional capacity."

DCP also has an option on land and
has filed permits to build a 12th gas processing plant in the DJ Basin southeast
of Greeley.
van Kempen says DCP Midstream is
"providing an all-encompassing, cradleto-grave solution" that alleviates bottlenecks by providing take-away capacity
for NGLs, residue gas and crude oil, as
well as gas gathering and processing.
For example, he says the company is
adding up to 220,000 bbl/d of NGL takeaway in the DJ Basin through its Southern
Hills extension of the White Cliffs Pipeline,
and its Front Range and Texas Express
expansions. Both expansions are expected
to go into service in the second quarter
of 2019.
"Our goal is to make sure we get
ahead of our customers in providing solutions," van Kempen states. "The DJ
Basin has been constrained. Producers
can move faster than we can. Our goal is
to provide all-encompassing, fully integrated solutions to not only gather and
process gas, but to also provide takeaway capacity for residue gas and NGLs."
Longer Laterals
Thanks to 20 acquisitions over the last
five years, Denver-based Extraction Oil

Denver-based Extraction Oil &
Gas-the third largest leaseholder in Colorado-is averaging
nearly two miles per lateral developing 22-24 wells a section
in the Wattenberg Field, targeting the Niobrara A, B and C
benches as well as the Codell
Sandstone. In 2017 and early
2018, the company drilled, fractured and turned on line 22 2.5mile wells on the Triple Creek
pad in only 10 months.

96 THE AMERICAN OIL & GAS REPORTER

& Gas is now the third largest leaseholder
in Colorado with 325,000 acres. Senior
Vice President of Operations Eric Jacobsen
says Extraction has 175,000 acres in the
core Wattenberg with its remaining acreage
in the North Colorado Extension.
Most of the company's focus is on
the Wattenberg, however, where Extraction has three rigs running and plans to
spud 190 wells this year, according to
Jacobsen.
"We are nearly a one-to-one with
drilling and frac crews," he mentions.
"We maintain two to three frac crews."
Part of Extraction's success in the
Wattenberg is attributable to longer laterals. "We average nearly two miles per
lateral now," Jacobsen comments. "In
fact, two miles and beyond represent 90
percent of our inventory. We understand
the reservoir and are developing 22-24
wells per section."
Extraction believes in full development,
he says, meaning it drills all 22-24 wells
in a section at one time for optimum
drainage before moving on. "We don't
anticipate going back to a section," Jacobsen remarks.
He points out that in 2017 and early
2018, Extraction drilled, fractured and
turned on line 22 2.5-mile wells on a
single pad: the Triple Creek pad, in only
10 months. "That is an example of how
efficient we have become," he boasts.
The majority of its acreage is held by
production. Jacobsen says Extraction is
targeting the Niobrara A, B and C benches
as well as the Codell Sandstone in each
section.
"We have fewer vertical penetrations
in our area," he reflects. "Because of
that, our acreage is the least depleted
from vertical wells. That makes for the
best Codell, which is the differential. The
last 120 wells we drilled have 1 millionplus boe estimated ultimate recoveries.
Extraction's Wattenberg wells average
65 percent liquids (50 percent oil and 15
percent NGLs) and 35 percent gas.
"Our cycle time is remarkable," Jacobsen continues. "Our record for a onemile spud-to-rig-release is 1.8 days. For
a two-mile lateral, it is 3.8 days. Our
cycle times in the DJ Basin are the
lowest among any major plays in the
country, and we believe among the lowest
in the Wattenberg."

American Oil and Gas Reporter - July 2018

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