Mewbourn 3 begins processing gas in August 2018
In line with expectations, DCP’s Mewbourn 3 plant began processing gas in the third quarter of 2018. This plant provides necessary capacity to continue to operate and grow production.
DCP announces initial plans for Bighorn (Plant 12)
To address the longer term production growth in the DJ Basin, DCP has initiated planning for Plant 12 or the Bighorn plant. The preliminary plans are for 1 Bcf/d of capacity including bypass which can be staged into operation as needed beginning in 2020.
Acquired 30,200 net acres (Greeley Crescent II) significantly expanding core Greeley Crescent development area
On November 8, 2017, SRC entered into a Purchase and Sale Agreement to acquire certain undeveloped land and non-operated production with Noble Energy for $568 million. The acreage has a high working interest and substantially all leasehold is held by production. Based on preliminary evaluation, approximately 700 gross drilling locations have been identified.
Notice to operators (NTO)
On May 2, 2017, the Colorado Oil and Gas Commission issued a Notice to Operators (NTO) to verify the location of all flowlines associated with operated wells and the integrity of those flowlines. SRC has completed all field work associated with the NTO and filed the required paperwork regarding its operations ahead of the June 30, 2017 deadline.
DCP plans the addition of two natural gas plants
SRC, in collaboration with several of its peers, worked closely with DCP Midstream (DCP) and is pleased by DCP’s recently announced plans to expand gathering and processing capacity in the DJ Basin. The plan includes a new 200 MMcf/d processing plant (Mewbourn 3) as well as the expansion of the Grand Parkway gathering system, both expected to be completed in the third quarter of 2018. In addition, the producers and DCP have agreed to the framework for an additional 200 MMcf/d processing plant with 100 MMcf/d of bypass capacity (O’Connor 2) expected to be in service by mid-2019. This additional gathering and processing capacity should significantly reduce the potential natural gas midstream constraints that may arise with increased operator activity in the basin.
SRC Energy is at the forefront of applying new technologies to improve drilling efficiencies, to reduce costs and to maximize well production, including:
Advanced horizontal drilling techniques:
Currently drilling horizontal wells on spacing that potentially allows up to 24 wells per section.
Utilizing an internally developed 3-D Earth Model which helps us design and drill wellbores that optimizes our exposure to the most productive rock.
The use of rotary steerable tools in unconventional plays has improved our ability to drill high quality wellbores which reduces some of the complexities around completion activities.
Monobore well designs reduce cycle-times and costs while providing the opportunity for more efficient completions.
New well completion and stimulation techniques:
Increases cash flow and investment returns
Mid and extended reach lateral wells are becoming a larger percentage of the operated horizontal wells, which could produce more efficient returns on capital than standard length laterals.