Colorado Oil Production Summary for March 2013

Oil exploration and development in Colorado is expanding swiftly beyond the Denver-Julesberg basin. The industry spotlight is now swinging toward Southeast Colorado. There, new wells are targeting Mississippian and Pennsylvanian tight oil previously not explored using conventional techniques, but now profitable through horizontal drilling technology. In some cases, horizontal drilling has re-opened interest in areas previously thought to be fully explored.

The success of the Nighthawk horizontal well projects in 2012 is now followed by Nighthawk’s assessment of production potential in their Steamboat Hanson 8-10 site. The Steamboat Hanson 8-10 well produced 22,000 barrels of oil from November 2012 to February 2013. An independent evaluation of Nighthawk’s Smoky Hill project Steamboat Hanson 8-10 well estimates a reserve potential of 14.5 million barrels of oil. Steven Gutteridge, Chairman of Nighthawk Energy, announced that having secured $5 million in addition funding, his company plans more exploration in Southeast Colorado in 2013.

Crude oil production has risen 64 percent in Colorado from 2007 through 2011. Oil reserves in the state may prove to be around 2 billion barrels.

Sources: UPI, Morningstar