Dejour Energy has announced that it will drill a primary well vertically to analyze the Mancos/Niobrara prospective at its 7,000-acre leasehold in Rio Blanco County, Colorado.
The leasehold is located on the western side of the Douglas Arch, which separates the Piceance and Uintah basins that is directly south to the Rangely Oil field controlled by Chevron.
The company will drill this well in May 2011 and has planned to examine upper and lower Niobrara segments of Mancos Shale. The target zones in this region have oil and natural gas. Now, R. W. Bayless and Foundation Energy is making use of lower Mancos zone. The pending drill results will verify the extension of the area to Dejour’s lease. The company has planned to start a proper horizontal well expansion program. Also, Castlegate Sand, a secondary target in the upper Mancos will be estimated in this primary well test.
The production prospective at South Rangely provides noteworthy production advantage with least capital expenses. The cost of this test is below $500,000 for a dry hole and this method may pave the way for many key development projects. Currently, this is employed in completion technology and horizontal well drilling program.
Source: http://www.dejour.com/