San Juan Newsletter, XXX 2000
Executive Summary
Following is an overview of activity in the San Juan
Basin. Gas volumes produced in the San Juan Basin averaged 4,196 MMcf/d for the third
quarter of 1999. Average coal seam volumes
for February were 1,886 MMcf/d. In February
2000, flows from the San Juan Basin to El Paso, Transwestern and PNM totaled 3,669 MMcf/d,
which is 90 MMcf/d more than in February 1999 and 94 MMcf/d more than in February 1998. Spot prices at the Blanco Hub for March were in
the $2.45-$2.55 range, with an average spot price of $2.50 per MMBtu. During the month of February, there were a total
of 45 “Notices of Intention to Drill”, 1 workover, 40 gas well completions, 2
oil well completion and 14 plugged and abandoned wells.
Background
The San Juan Basin is one of the most prolific gas
producing regions in the country, located in northwestern New Mexico and southwestern
Colorado. It is roughly a circular area of
about 15-20 thousand cubic miles of sedimentary rock.
The basin currently produces just over 4 Bcf/d.
Over 26,000 wells have been drilled in the basin, with approximately 20,000 wells
currently producing. They range in depth from
2,000 feet to over 7,500 feet. The major
producing formations in this basin are the Dakota, Mesa Verde, Pictured Cliffs and the
Fruitland coal. Current remaining recoverable
reserve estimates for northwestern New Mexico are 12.9 Tcf. The development of the Fruitland coal seam
resource starting in 1988 dramatically changed this basin.
Currently, almost 65% of the total production from this basin is from this one
resource.
The extension of the TransColorado Pipeline into northern
Colorado started operating the beginning of April. To
date, there are three interconnects in northern Colorado on TransColorado Pipeline, which
connects northern Colorado to the Blanco Hub. These
interconnects are with Questar Pipeline, Barrett Resources, and Colorado Interstate Gas.
Questar was the only active receipt point during February, with gas volumes averaging only
16 MMcf/d, down 2 MMcf/d from January. |
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