Rocks with hydrocarbon potential in the project’s lease are members of the Mancos Shale, the Castlegate Sandstone, the Mancos B sandy siltstone, the Dakota/Cedar Mountain Formations, and the Weber Formation. These exist on the western flank, near the crest of the Douglas Creek Arch just south of the super giant Chevron operated Rangely Oil Field (>1.1 billion barrels of oil produced from the Weber Formation). EUR gas production from the Mancos Formation members, found at a depth of 2500 ft to 3800 ft at South Rangely, has been about 0.7 BCF per well. Weaver Canyon and Weaver Ridge EUR oil production has been between 30,000-60,000 barrels from vertical wells completed recently to the southwest, down the fault trapping trend. This project plans call for an initial vertical well to appraise the formation and reduce reservoir characteristic uncertainties followed by horizontal wells drilled along structural strike in the oil leg. With the use of multi-stage fracture stimulation, estimated oil EURs are 200,000+ BO per well.
Below the Mancos is the Dakota/Cedar Mountain Formation which will be found at a depth of about 6900 ft. While past drilling has not resulted in prolific finds, new technologies allow Dejour to consider this previously sub-economic horizon as upside potential.
