San Juan Newsletter, XXX 2000
Executive Summary
Gas volumes produced in the San Juan Basin averaged 4,196 MMcf/d for the third quarter
of 1999. Average coal seam volumes for March were 1,897 MMcf/d. In March 2000, flows from
the San Juan Basin to El Paso, Transwestern and PNM totaled 3,620 MMcf/d, which is 46
MMcf/d less than in March 1999 and 136 MMcf/d more than in March 1998. Spot prices at the
Blanco Hub for April averaged $2.75 per MMBtu, which is 25 cents more than in March.
During the month of March, there were a total of 113 "Notices of Intention to
Drill", 1 workover, 49 gas well completions, 0 oil well completions and 26 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. |
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