San Juan Newsletter, February 2001
Gas volumes produced in the San Juan Basin averaged 4,122 MMcf/d for the first quarter
of 2000. Average coal seam volumes for December were 1,849 MMcf/d. In December 2000, flows
from the San Juan Basin to El Paso, Transwestern and PNM totaled 3,680 MMcf/d, as compared
to 3,538 MMcf/d in December 1999 and 3,438 MMcf/d in December 1998. Spot prices at the
Blanco Hub for January averaged $8.80 per MMBtu, which is a record high. During the month
of December, there were a total of 56 "Notices of Intention to Drill", no
workovers, 89 gas well completions, 1 oil well completion and 5 plugged and abandoned
wells.
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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