San Juan Newsletter, October 2001
Gas volumes produced in the San Juan Basin averaged 4,255 MMcf/d
for the first quarter of 2001. Average coal seam volumes for July
2001 were 1,724 MMcf/d. In August 2001, flows from the San Juan
Basin to El Paso, Transwestern and PNM totaled 3,754 MMcf/d, as
compared to 3,655 MMcf/d in August 2000 and 3,646 MMcf/d in August
1999. Spot prices at the Blanco Hub for September averaged $2.18
per MMBtu, down from January's record high of $8.18. During the
month of August, there were a total of 84 "Notices of Intention
to Drill", no workovers, 86 gas well completions, no oil well
completions and 9 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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