Exploration & Production | Well Cost | Drilling / Well Results | Top Story | Quarterly / Earnings Reports | Second Quarter (2Q) Update
QEP Targeting Ethane Recovery at Pinedale, Uinta Projects
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QEP Resources Inc. has reported a second quarter 2014 update on its Pinedale Anticline and Uinta Basin operations.
Pinedale Anticline
During the second quarter 2014, QEP Energy's Pinedale net production averaged 278 MMcfed (24% liquids). QEP Energy began recovering ethane from Pinedale production on October 1, 2013, and partial ethane recovery continued throughout the first half of 2014. Currently, the Company plans to recover ethane for the remainder of 2014.
At the end of the second quarter, QEP Energy had four rigs operating at Pinedale. In the second quarter, drill times from spud to total depth averaged 11.3 days, compared to an average of 12.0 days in 2013. The Company completed and turned to sales 35 gross Pinedale wells during the second quarter 2014, including two wells for which QEP Energy was the operator but owns only a small overriding royalty interest. At the end of the second quarter, the Company had 50 gross Pinedale wells with QEP working interests drilled, cased and waiting on completion (average working interest 70%).
The Company currently expects to complete a total of approximately 110-115 gross wells during 2014, including approximately ten wells for which QEP Energy is the designated operator but owns only a small overriding royalty interest.
Uinta Basin
During the second quarter 2014, Uinta Basin net production averaged 74 MMcfed (36% liquids) of which 33 MMcfed (29% liquids) was from the Lower Mesaverde play. QEP Energy began recovering ethane from Uinta Basin gas production on October 1, 2013, and partial ethane recovery continued throughout the first half of 2014. Currently, the Company plans to recover ethane for the remainder of 2014.
At the end of the second quarter, the Company had one operated drilling rig working in the Lower Mesaverde play, 82 producing wells in the play, one well drilling (working interest 100%) and one well waiting on completion (working interest 100%). At the end of the second quarter, the Company was drilling its fourth horizontal Lower Mesaverde well and continues to make improvements on drill times and completion designs. The new drilling and completion approach could considerably improve the field development economics and lead to an accelerated drilling plan.
In addition to Lower Mesaverde activity, during the second quarter 2014 the Company had one rig drilling vertical wells targeting multiple crude oil-bearing limestone and sandstone reservoirs in the Lower Green River Formation, at an average true vertical depth of 5,500 feet.