Update on Questar
Company plans to operate 6 rigs on Pinedale acreage in 2010
October 27, 2009
Questar Corporation (NYSE: STR) subsidiary Questar Exploration and Production Company provided an update on the company’s leasing and acquisition activity, recent well results, and initial drilling plans for 2010 in its core operating areas on Tuesday, October 27th. Below are highlights from that report. Click on this link for the full press release: http://www.questar.com/1OurCompany/newsreleases/2009_news/09-17_Questar_E%26P_Acquires_New_Haynesville_Shale_Acreage.pdf
Pinedale, Wyoming: At Pinedale in southwestern Wyoming, the company has completed and turned to sales 82 new wells in 2009 and is on track to complete a total of 95 to 100 wells by year end. The company has five operated rigs currently working at Pinedale and anticipates adding a sixth rig by year end. Questar's Pinedale team continues to improve drilling and completion performance at Pinedale. Average gross completed well costs on Questar-operated wells trended below $5 million during the quarter. If five-acre-density development is appropriate for a majority of its leasehold, the company currently estimates up to 1,400 additional wells will be required to fully develop its acreage. Questar E&P has an approximate 60% working interest in its operated Pinedale acreage. For 2010, the company plans to operate six rigs on its Pinedale acreage.
Louisiana: Questar has increased its acquisitions and ongoing drilling activity in Louisiana. For 2010, Questar E&P expects to operate eight drilling rigs in NW Louisiana, with seven rigs targeting horizontal Haynesville Shale core development.
Oklahoma: Questar E&P has added two new company-operated Woodford "Cana" Shale wells on its 22,000 net acre leasehold in western Oklahoma. The company has one operated rig working in the play, has working interests in six currently drilling wells, and five wells that have been drilled and cased and are either waiting on completion or completion is in progress. Questar E&P currently has working interests in 45 producing wells and estimates it could have interests in up to 700 development locations in the emerging play. For 2010, Questar E&P anticipates operating one drilling rig in the play and participating in numerous outside operated wells.
Texas & Oklahoma: Questar E&P has over 24,000 net acres in the Texas and Oklahoma Granite Wash plays. For 2010, the company anticipates operating at least one drilling rig targeting both horizontal and vertical Granite Wash development.
North Dakota: Questar E&P currently plans to operate one drilling rig throughout 2010 and currently has working interests in 23 producing wells in the Bakken play in North Dakota.