Pacific Energy starts drilling first well in Wattenberg Asset in US

Pacific Energy Development has started drilling the first of three back-to-back wells on its Wattenberg Asset in the US.

The company said the work on the first three wells is on target and the drilling of the second and third wells is due to follow shortly.

Pacific Energy aims to undertake the drilling work from a single pad. The expected gross cost per well is approximately $4.2m.

The company holds a 49.7% net working stake in each well.

Each well is expected to receive an 18-stage enhanced frac treatment with lateral lengths between 4,000ft and 4,500ft.

Initial results are likely to be revealed in late October 2014.

The Wattenberg Asset covers an area of approximately 27,914 acres in the Wattenberg, Wattenberg Extension and Colorado Mineral Belt in Weld and Morgan counties, Colorado.

Pacific Energy owns a 50% working interest and serves as the operator through its subsidiary Red Hawk Petroleum.

RJ Resources is Pacific Energy’s strategic partner in the asset.

Currently, Pacific Energy operates 11 wells in the recently acquired Wattenberg Asset and five more wells through its subsidiary Condor Energy Technology in its Niobrara Asset.

California-based Pacific Energy acquires and develops shale oil and gas assets in the US.

The company has agreed to acquire an indirect 5% stake in a 380,000-acre producing asset located in the Pre-Caspian Basin in Kazakhstan.

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Image: The drilling of the second and third wells is due to follow shortly. Photo: courtesy of meepoohfoto / FreeDigitalPhotos.net.