San Juan Newsletter, March 2001
Executive Summary
Gas volumes produced in the San Juan Basin averaged 4,122 MMcf/d for the first quarter
of 2000. Average coal seam volumes for January were 1,809 MMcf/d. In January 2001, flows
from the San Juan Basin to El Paso, Transwestern and PNM totaled 3,585 MMcf/d, as compared
to 3,526 MMcf/d in January 2000 and 3,597 MMcf/d in January 1999. Spot prices at the
Blanco Hub for February averaged $6.24 per MMBtu, down from January's record high of
$8.18. During the month of January, there were a total of 59 "Notices of Intention to
Drill", no workovers, 98 gas well completions, 1 oil well completion and 22 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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