San Juan Newsletter, June 2001
Following is an overview of activity in the San Juan Basin. Gas
volumes produced in the San Juan Basin averaged 4,254 MMcf/d for the
fourth quarter of 2000. Average coal seam volumes for March 2001
were 1,759 MMcf/d. In April 2001, flows from the San Juan Basin to
El Paso, Transwestern and PNM totaled 3,538 MMcf/d, as compared to
3,471 MMcf/d in April 2000 and 3,633 MMcf/d in April 1999. Spot
prices at the Blanco Hub for May averaged $4.65 per MMBtu, down from
January's record high of $8.18. During the month of April, there
were a total of 63 "Notices of Intention to Drill", no
workovers, 57 gas well completions, no oil well completions and 8
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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