It is being reported that Southwestern Energy Co., is moving ahead to purchase 312,000 net acres in northwest Colorado to better target oil, natural gas liquids and natural gas in the Niobrara shale play.
The land will be bought from Quicksilver Resources Inc. and Swepi LP, a unit of Royal Dutch Shell PLC for approximately $180 million. It is predicted that the sale will close in the second quarter of this year. The company is expecting to start drilling activities as early as June 2014.
“This acreage covers a substantial area in the Sand Wash basin,” said Steve Mueller, Southwestern president and chief executive officer. “Basin characteristics include proven oil production with minimal water cut, preferred fluid-phase windows, demonstrated overpressure, evidence of matrix permeability and porosity, a continuous reservoir with ample storage capacity, and potential upside from downspacing and stacked reservoir benches.”