American Oil and Gas Reporter - July 2019 - 76

SpecialReport: Rockies Activity Profile
Evolution
The advent of horizontal drilling for
crude oil is but the latest step change in
the evolution of the Powder River Basin,
which has produced 436 million tons of
coal (more than the entire Appalachian
region). The basin also has produced both
conventional natural gas and coalbed
methane. Now, companies are finding
crude oil success.
"We have two rigs and one frac spread
running, and we plan to add a third rig
by the end of the year," reports DeDominic,
who says Anschutz has 460,000 acres in
the Powder River Basin. "There are a lot
of economic targets, and where we are
focusing our drilling resources is 80%87% oil."
He says the Turner is Anschutz's main
producing interval at this time. The company
has plans to drill 14 Turner wells this year
along with nine Niobrara wells and a small
number of Mowry wells, he adds.
DeDominic says the Niobrara takes
quite a bit more water to fracture in comparison with the sandstones.
"We, Devon Energy and EOG Resources
are running spacing tests this year to determine how many Niobrara wells we can
drill in each drilling spacing unit," he reveals. "Once we figure that out, we can finalize the infrastructure we will need. I

anticipate there could be as many as 150290 Niobrara wells over one township."
About 18 months ago, he indicates,
Anschutz shifted to drilling two-mile laterals exclusively. "We have been drilling
multiple zones off the same pads," DeDominic affirms. "We are drilling our
first three-well pad now, which is part of
our spacing test. We could end with 8-18
wells a pad, depending on location. We
are not as far along as other basins in determining the optimal spacing. The Permian, DJ, Williston and other basins are
multiple years ahead of us. But we will
learn from what they are doing. The Powder River will leverage the experience
from the other basins."
Anschutz has drilled 12 Turner wells
side-by-side from adjoining pads, according
to DeDominic. He says the company is in
the process of optimizing its completion
design and spacing for the Turner.
"Our teams are working to analyze
the data, optimize our recovery and lower
costs," he adds.
One source of savings, of course, will
be using central facilities to handle water
and oil and gas gathering, once the company determines its spacing. DeDominic
says Anschutz is drilling water wells and
building 1-million-barrel retention ponds
in its core, which will save another

Ballard Petroleum is focusing
95% of its activity in the Powder River Basin, where it is
drilling two-mile laterals in the
Turner and Parkman plays. The
company owns 100,000 acres
in the basin and is running
one operated rig in a five-zone
program in a 30,000-acre core
leasehold in southern Campbell County, Wy., where its
wells are producing 70% oil
and 30% gas.

76 THE AMERICAN OIL & GAS REPORTER

$300,000-$400,000.
"That will kick off this fall," he projects.
"Economics will improve as we move
into the development phase."
Anschutz has tightened its completions-stage spacing and is using less fluid,
DeDominic goes on. It is pumping 400800 pounds of proppant per linear foot,
depending on the formation, and employs
28 fracture stages in its two-mile Turner
laterals and 35 stages in its Niobrara
wells, he says.
Turner/Parkman
The Powder River Basin continues to
be the operational focal point for Ballard
Petroleum, says President David Ballard,
who says that given the upside of the
Turner, Parkman and other formations,
that commitment to the basin is paying
off for the Billings, Mt.-based company.
"It was well known that there were
stacked pays in the Powder River," Ballard
acknowledges. "But it had to be proven
that they would work with horizontal
drilling. All have turned out to be really
good targets."
Although Ballard Petroleum has
acreage in several Rockies basins, Ballard
says 95% of its activity focuses on the
Powder River Basin, and especially the
Turner and Parkman plays. The company
is drilling two-mile laterals, and last year
completed a four-well pad with two Turner
laterals and two Parkman wells.
"We just finished a five-well pad, all
Turner," he adds.
Ballard Petroleum has 100,000 acres
in the Powder River Basin, and is running
one operated rig in a five-zone program
in a 30,000-acre core leasehold in southern
Campbell County, Wy. Its wells are producing 70% oil and 30% gas.
"We sell the natural gas liquids along
with the gas," Ballard explains. "We get
a good benefit from it. We have been
drilling horizontal wells here longer than
anyone else. We are using about the same
amount of sand since we started. It is not
a high intensity frac."
He says the company is using 800900 pounds of sand per lateral foot in its
Turner program. Ballard became an operator in the Powder River Basin in 1993
and his company drilled its first horizontal
wells in 2002. It started employing multistage fracs in 2010.
"When we started our program in south-

American Oil and Gas Reporter - July 2019

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