Speculative oil wells drilled near Mancos

Speculative oil wells drilled near Mancos

Nov. 25, 2000

By Janelle Holden
Journal Staff Writer

THIS EXPLORATORY WELL east of Mancos near County Road 33 is among several exploratory "wildcat" oil and gas wells that are being drilled in the county by Questar Exploration and Production Company. The Salt Lake City-based firm holds four drilling permits in Montezuma County, two in the above area and two near the Canyon of the Ancients National Monument, and has applied for a permit to drill another in Echo Basin.

A Salt Lake City energy company has recently applied to drill an exploratory well in Echo Basin, hoping to strike a large deposit of oil and gas.

Questar Exploration and Production Company currently has four permits to drill in Montezuma County. The Colorado Oil and Gas Commission granted Questar two permits to drill wells northeast of Mancos in October.

The company was already granted two permits in May to drill on BLM land bordering the Canyons of the Ancients National Monument near Yellow Jacket Canyon.

The exploratory drilling is the first to test the geologic formation near Mancos, where no oil is currently being produced.

Although exploring a non-producing area is unusual, oil companies have begun more oil and gas exploration across the state recently.

"With current oil and gas prices, and in response to technology, there are a lot of areas in the state where companies are coming in and doing exploratory drilling," said Rich Griebling, director of Colorado’s Oil and Gas Commission.

Griebling said that Questar will be able to produce oil or gas, if it finds any, within a year. Exploratory wells are named "wildcats," and are usually dug in formations predicted to have oil by seismic measurements.

"Wildcats in general have a less than 50 percent probability of success, and they have much less than that depending on the type of risks associated with the prospect," said Griebling.

After Questar’s permit runs out, the company must reclaim the land to the condition it was in before the drilling started. Reclamation includes reclaiming the contours of the ground’s surface, and re-establishing vegetation.

Before drilling occurred, the company issued a bond to the state. The bond is not released until all reclamation requirements are met.

Questar is required to purchase or lease the mineral rights on the property before drilling.

According to Oil and Gas Commission records, in 1999, Montezuma County produced 190,186 barrels of crude oil, worth $3,084,817. In addition, 1.9 billion cubic feet of natural gas was produced in 1999, netting $3,994,917.