""We have 15 Gallup Sandstone wells this year, and our plan is to drill 37 next year," said WPX spokeswoman Susan Alvillar. "We're very pleased, and it's going to keep us very busy."
FARMINGTON — Encana Corporation announced earlier this month a new company strategy and vision, with much of that strategy being focused on the San Juan Basin where it plans to invest hundreds of millions of dollars in new oil and gas production beginning in 2014.
The announcement has prompted a flurry of speculation among those in the local oil and gas industry that the increased drilling will begin immediately after the first of the year.
In a Nov. 5 news release, the Calgary-based Encana outlined key points of its strategy, the first of which states that it will "focus its capital investment on five oil and liquids-rich resource plays in North America."
The release goes on to state that Encana will "invest approximately 75 percent of its 2014 capital into five high return oil and liquids-rich plays: the Montney, Duvernay, DJ Basin, San Juan Basin and Tuscaloosa Marine Shale."
In dollar amounts, this translates to 350 million to 400 million dollars in capital that Encana plans to invest in the San Juan Basin in 2014, said Encana spokesman Doug Hock.
"We will run two to four rigs in the area where oil and liquids are," said Hock. "Our strategy is to develop oil and natural gas liquids plays in the Mancos Shale over the course of 2014."
Hock said that to date, Encana has drilled some 20 wells in the Basin at a rate of approximately one well a month, and the increased production plans are a result of the positive drilling performance already seen in the basin, as well as economic conditions that make drilling in this area beneficial to the company.
WPX Energy has also announced its intention to drill more oil wells in the Gallup Sandstone in 2014.
"We have 15 Gallup Sandstone wells this year, and our plan is to drill 37 next year," said WPX spokeswoman Susan Alvillar. "We're very pleased, and it's going to keep us very busy."
WPX is currently using one drilling rig from Aztec Well Service. Alvillar didn't confirm whether more rigs will be sought from the company to drill the additional wells. For more of the article use this link--> http://www.daily-times.com/farmington-business/ci_24615895/encana-announces-multi-million-dollar-drilling-plans-2014