San Juan Newsletter, May 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 July 2001, flows from the San Juan Basin
to El Paso, Transwestern and PNM totaled 3,592 MMcf/d, as compared
to 3,666 MMcf/d in July 2000 and 3,475 MMcf/d in July 1999. Spot
prices at the Blanco Hub for August averaged $2.59 per MMBtu, down
from January's record high of $8.18. During the month of July, there
were a total of 30 "Notices of Intention to Drill", no
workovers, 68 gas well completions, no oil well completions and
33 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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