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Oil, gas wells in northwestern NM show potential
FARMINGTON, N.M. (AP) — The oil and gas industry is getting excited about a potential boom in northwestern New Mexico.
By: New Mexico Center for Energy Policy
Ken McQueen of Oklahoma-based WPX Energy Inc. told the Albuquerque Journal that two wells the company drilled in 2010 in a dry natural gas section of the Mancos have produced 2 billion cubic feet of gas so far. He described the area as an "attractive target" to pursue.
"These two wells are in the top 10 best wells drilled by WPX to date," he said. "They're quite extraordinary for us."
Energy development companies were hopeful about the prospects for liquid natural gas and oil in other sections of the Mancos formation.
Mancos shale is sandwiched between soft sandstone layers in the San Juan Basin that producers have been exploiting for decades. Modern drilling techniques allow resources trapped inside the rock-hard shale to be tapped. Three dimensional imaging helps pinpoint oil and gas deposits, while hydraulic fracturing and horizontal drilling can access the deposits.
"I'm bullish on the Mancos," said T. Greg Merrion, president of Merrion Oil and Gas Corp. in Farmington. His company is partnering with Denver-based Bill Barrett Corp. to drill exploratory oil wells in the area.
"We've already seen a number of wells drilled that are economic," Merrion said.
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