San Juan Newsletter, December 2000
Executive Summary
Following is an overview of activity in the San Juan Basin. Gas volumes produced in the
San Juan Basin averaged 4,122 MMcf/d for the first quarter of 2000. Average coal seam
volumes for October were 1,793 MMcf/d. In October 2000, flows from the San Juan Basin to
El Paso, Transwestern and PNM totaled 3,633 MMcf/d, as compared to 3,529 MMcf/d in October
1999 and 3,451 MMcf/d in October 1998. Spot prices at the Blanco Hub for November averaged
$4.41 per MMBtu, which is 17 cents less than in October. During the month of October,
there were a total of 37 "Notices of Intention to Drill", no workovers, 82 gas
well completions, 1 oil well completion and 22 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. |
|
){kind=link}
){kind=link}
){kind=link}