San Juan Newsletter, October 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 August were 1,818 MMcf/d. In August 2000, flows from the San Juan Basin to El
Paso, Transwestern and PNM totaled 3,649 MMcf/d, as compared to 3,636 MMcf/d in August
1999 and 3,385 MMcf/d in August 1998. Spot prices at the Blanco Hub for September averaged
$3.48 per MMBtu, which is 2 cents more than in August. During the month of August, there
were a total of 50 "Notices of Intention to Drill", 5 workovers, 39 gas well
completions, no oil well completions and 8 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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