DJ/Niobrara News Pulse June 2023

Posted: July 18, 2023

The DJ/Niobrara Basin | June 2023

Field Overview

Located mainly in the Northeast of Colorado, the Denver-Julesburg Basin consists of five main oil-producing formations: Niobrara sections A-C, Codell, and Greenhorn. These five plays produce over 90% of Colorado’s oil/gas.

State Drilling Statistics

Active Drilling Rigs in Basin- 14 (-)
Total Rigs in Colorado- 15 (-1)
Total Rigs in the United States- 675 (-7)
Total U.S. Rigs 10.7% YTD

State Permitting Data
Permits Approved (10/1/2022 to 4/30/2023) – 35

State Top Producers

Top Producer By BOE – Kerr McGee (Occidental)

Basin Highlights

Chevron Gives a $7.6 Billion Endorsement to DJ Basin

The recently-announced acquisition of PDC Energy by Chevron for $6.3 billion (a $7.6 enterprise value) adds 275,000 net acres to Chevron’s DJ asset. This acreage is mostly immediately offset of acreage that Chevron assumed in its recent Noble acquisition. This deal makes Chevron the basin’s largest producer. The deal also adds 25,000 acres to Chevron’s huge Permian asset base. Presently, PDC is running 3 rigs in the DJ and Chevron is running 2. The cumulative count will likely decrease after the acquisition.

PEDEVCO Announces Expansion into Wyoming DJ Play

PEDEVCO Corp announced the acquisition of 4,000 additional acres in the Wyoming portion of the DJ Basin, increasing the company’s leasehold to over 17,000 net acres in the DJ. They have indicated an intention to target the more prolific Codell primarily and the Niobrara secondarily. The wells are expected to have EURs of over 750 MBOE, which is competitive across all the major shale basins in the US. PEDEVCO Corp (NYSE: PED) is a publicly-traded firm operating in the Northwest Shelf of the Permian and in the DJ basin.

Fundare Resources Provides Company Update

Fundare Resources Company LLC, the holder of Fundare Redtail, Moonrise Midstream, and Rangeview Resources, gave an update on their assets recently. Fundare Redtail, the DJ Basin operating arm of the Company. The firm operates 63,000 net acres in the DJ, much of which was taken over from Whiting. In applying updated completion designs to Niobrara A and Niobrara B wells in the upcoming months, the firm plans to add several thousand barrels per day of low-cost production to their DJ asset. Moonrise Midstream does much of the gathering for Fundare Redtail, which serves to bolster returns.

Top CO Permitting By Operator

RankCompanyPermits Approved
1PDC Energy19
2Verdad Resources15
3Civitas Resources8
3 Southern Ute Indian Tribe8
4Fulcrum Energy Operating LLC7
Hyperlinks to available Q3 2021 Reports

Top Oil Producers

RankCompanyProduction (MMBO)
1Civitas Resources3,627
2PDC Energy3,334
5Verdad Resources811
Hyperlinks to available Q3 2021 Reports

Rig Count

Colorado Production

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