Venting gas well monitored
The Salt Lake Tribune
Article Last Updated:10/13/2006 02:03:22 AM MDT
Authorities near Green River are monitoring a natural gas well that has been venting since Monday. The well is about 4 miles southeast of Green River and was posing no danger on Thursday evening, said Grand County sheriff's Deputy Brent Pace, but the sheriff's office and state officials are keeping the public away from the well until work crews can fix the problem. On Monday, Delta Petroleum Corp. was drilling a well on state land. The corporation was prepared for well pressure of 5,000 pounds per square inch, but the pressure increased to 8,000 PSI, overtaking safety valves on the well, said Tammy Kikuchi, a spokeswoman for the Department of Natural Resources. Rig operators are allowing the gas to vent until a higher-capacity safety valve can be installed. Pace said crews hope to install that valve this afternoon. - Nate Carlisle and Joe Baird
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The DPTR web site (http://www.deltapetro.com) has a presentation dated Oct 2006 that shows the paradox basin and the 5 prospect areas there that DPTR has been exploring (slide 12) - the green town prospect area is one of 5 potential 100 BCF prospects. They have two wells going there - at the time of the presentation one was waiting on completion (36-11), the other was drilling (32-42). Those two wells are pretty far apart and it is likely the 36-11 is the one that has spouted a ng gusher.
Remember that Paradox Basin is not one of their development areas (Newton County in Texas, Vega Unit in Pieance Basin in Colorado, and Howard Ranch in Wyoming). It is one of their three new ventures that they consider to have mega potential. They include Paradox Basin for gas, Utah Central Hingeline for oil (where Joseph prospect well adjacent to covenant field is about to be spudded) , and CRB for gas. The Paradox basin is a large area south and east of the Hingeline oil play. Within the basin are the five prospect areas, quite widely separated. This is their first find in the Green Town prospect area where they are drilling two wells. The Salt Valley prospect area is a little to the east and they are completing one well (Salt Valley 25-12). These are the only three wells DPTR has drilled in the Paradox basin. The other three prospect areas are further south and east and include Fisher Valley, Gypsum Valley, and Cocklebur Draw. They haven't yet drilled any wells on those three.
This to me sounds like huge news. Obviously they couldn't just test and cap the well and keep it secret since the gas spewing into the air is getting attention. Hopefully they will get it capped with a higher pressure cap - and then give some report at the annual meeting - including having it capped, the potential of the well, and the implications of the find.
You really have to like this line in the Associated Press report about the leak.
<< They found some natural gas. However, it was too much natural gas and the company's equipment could not handle all of it.>>
IMO you can never find "too much" natural gas.
I do think this news will be digested and analyzed and that it will put some upward pressure on share price. I wish I had a little bigger position.
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