North American independent oil and natural gas exploration and production firm Dejour Energy has started producing natural gas at two of its four new wells in the Piceance Basin and the Peace River Arch in the US.
The four wells were completed by Halliburton under a turnkey contract arrangement. They will be operated in sets of two in the William Fork formation with eight frac stages for each well.
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Dejour said that by the end of next week all the four wells will begin production.
The company will sell the produced natural gas as soon as it is ready to flow into the gathering system. Under its policy of ‘green completions’ it aims to reduce the effect of hydrocarbons on the atmosphere.
The combined natural gas sales from the first two wells have increased from 550 to 1500 million cubic feet a day after just two days of cleanup time.
Dejour Energy COO Hal Blacker said that the success of the operation establishes Dejour as a new and significant long-term producer of rich gas reserves in the Piceance Basin.
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By GlobalData"We are now focused on the further development of the Kokopelli liquid rich gas which may include testing the deeper Mancos/Niobrara high-pressure gas resource that we believe to be prolific in the eastern portion of the Piceance Basin," Blacker added.
The natural gas produced by Dejour is gathered, processed, transported and sold by WPX Energy and Williams Energy Services.
Dejour has controlling interests in over 12,500 gross acres of Niobrara resources throughout the Piceance Basin.
