Low-Risk Niobrara and Codell DevelopmentDJ Basin, Colorado
DJ Basin, Colorado
The Sapphire Joint Venture involves the drilling and completion of fifteen new horizontal wells with Bayswater Exploration and Production as the operator in the prolific Niobrara Trend in the Greater Wattenburg Field in the DJ Basin of Northeastern Colorado. The Niobrara Trend is currently ranked as the second-most economic oil shale resource play in the United States and is considered a very low geologic-risk drilling opportunity in an established oil-rich field.
The Niobrara Trend is composed of interbedded oil-rich shale (original source rock for the oil inplace), marl and chalk (reservoir-quality rock with porosity) and responds very well to horizontal drilling and multi-stage fracturing due to the brittle nature of the formation. An additional formation, the Codell Sandstone, is also a primary target in the DJ Basin, resulting in “shared risk” due to multi-level development. Bayswater will drill ten horizontal Niobrara wells and five horizontal Codell wells. The ongoing development of the Niobrara Trend can be considered more of a “mining process” than a true exploration or “wildcatting” play, since the oil is already in-place, and horizontal drilling and multi-stage hydraulic fracturing can be used to extract the oil economically.
To date, Bayswater has drilled and completed 258 successful horizontal Niobrara and Codell wells in Weld County, Colorado, with strong well performance and increasing production results due to technology advancements in drilling and completion. Eagle Natural Resources has participated in a non-operating working interest position in 61 consecutive successful Niobrara and Codell wells in Colorado to date, including the Rio La, Wilson, Rinn Valley, Groves Farm, Calvary Farms and Tatanka Projects, with gross production of 7.8 Million Barrels Oil and 41 Billion Cubic Feet of Natural Gas (or 14.8 Million Barrels Oil, Equivalent) since September 2018, from these six projects. The Sapphire Project is directly offset to the successful Groves Farm and Calvary Farms Projects. Eagle continues to pursue additional non-operating working interest projects in the DJ Basin, taking advantage of recovering oil and natural gas prices, as well as the later generation completion techniques developed by industry over many years, receiving the benefit of billions of dollars invested in the “learning curve” of early development in the prolific Niobrara Trend.
1.117% Non-Operated Working Interest (0.8378% Net Revenue Interest) – Available for $2,500,000
Operator Bayswater Currently Drilling as of April 2023 – Fifteen 2-Mile Laterals
(PTD 14,800’ – PTVD 7,000’) Bayswater Has Drilled 258 Horizontal Niobrara
and Codell Wells in Weld County, Colorado with Strong Results