Niobrara Shale Play, Mud Gulch Prospect, Sand Wash Basin
Moffat County, Colorado
Termo is currently seeking an additional partner to drill a horizontal Niobrara test well in the summer of 2012. We recently extended our leases on 2,500 acres in this area to ensure we have a foothold in this emerging resource play.
Shell, Quicksilver, and Axia are just some of the larger operators building sizeable positions around our lease block and testing the potential of the shale zone. Quicksilver in a spring 2011 news release announced that it had assembled almost 200,000 acres in the Sand Wash Basin and intends to drill six vertical test wells this summer.
According to E&P magazine, the Niobrara “remains a relatively unproven shale resource play in terms of its size and potential”(E&P Magazine, June 1, 2011 ‘Will Niobrara Turn Up Next Rockies Oil Boom’), but the interest by some of the smarter unconventional players in the business suggests that we will soon see this potential proven. Termo will continue to monitor the results of the other operators as we develop our plans for drilling this exciting play next summer.