For Western CO hunters

[MarvB]

Been years since I personally hunted near the area I believe this production is in (East of Rifle?) but thought it may be of interest to others...

The Williams Cos. said Wednesday it has signed agreements to operate 10 new rigs as part of its program to step up production in the gas-rich Piceance Basin in western Colorado.

The Tulsa-based energy company reported it has entered into contracts with Helmerich & Payne, a contract drilling company in Tulsa, for the operation of 10 new FlexRig4 drilling rigs, each for a term of three years, which clears the way for Williams to increase the pace of developing its natural gas reserves in the Piceance Basin.

At the end of 2004, Williams said its ownership in the Piceance Basin accounted for 61% of the company's 3 trillion cubic feet equivalent (Tcfe) of total proved domestic reserves and more than half of its estimated 7 Tcfe of proved, probable and possible reserves.

The company noted it expects to drill approximately 300 wells in the Piceance Basin this year. The first appreciable increase in drilling activity from the new rigs is planned for 2006 when Williams plans to drill up to 450 wells in the basin, up from its previous plan for approximately 325 wells there, it said.

Williams estimated that total capital spending for the E&P segment will be $530-605 million in 2005, $725-825 million in 2006, and $725-875 million in 2007.

Williams currently has 13 rigs operating in the Piceance Basin through other vendors. As the new rigs from Helmerich & Payne are added, Williams said it is expecting to run an average of approximately 20 rigs in the basin in 2006 and an average of about 22 rigs there in 2007.

The new rigs are designed to drill up to 22 wells -- in an underground spoke formation -- from a single surface location that is half the size of traditional drilling sites. As a result, the company said much of its increased drilling activity will not be visible on the surface.