Western expands Julesburg play

Western Gas Resources has drilled and logged two test wells in the Denver Julesburg basin and plans six more exploratory holes early next year to see what the area holds.

The Denver, Colo.-based company recently increased its position in the area to about 315,000 net acres.

Western Gas is targeting the Niobrara Formation, an unconventional reservoir at about 2,500 feet. It’s expecting 300 million to 500 million cubic feet per well, with a drilling cost of $200,000 per well.

If production testing pans out, development drilling will start in the middle of next year and gas should be flowing by the end of that year.