Bonanza Creek beefs up Wattenberg reserves
Estimates include a 29% increase in preliminary proved reserves in core acreage
US independent Bonanza Creek Energy said reserves at its core acreage in Colorado’s Wattenberg field have grown as the company expects to spend less in 2019 than it did last year.
The company at year-end 2018 reported a 29% increase in preliminary proved reserves totalling 116.8 billion barrels of oil equivalent, when compared to year-end 2017 reserves in the Wattenberg.
“The sale of our Midcontinent assets allowed us to accelerate value creation in Wattenberg. We continue to see improvement in well performance through higher-intensity stimulations and thoughtful reservoir pressure management,” chief executive officer Eric Greager said in a statement.
Bonanza sold off its Midcontinent assets last August, allowing the company to shift its focus to developing the Niobrara shale play and the Codell formation in the Denver-Julesburg basin, where the company holds 67,000 net acres in Weld County.
The company expects to utilise a one-rig development programme in 2019, with capital expenditure guidance ranging from $230 million $255 million. Last year, Bonanza Creek spent $275 million in capital outlay.
Plans include spudding around 59 gross (38.6 net) wells, bring online about 45 gross (32.8 net) wells, and book 40 to 45 drilled but uncompleted gross wells by the end of 2019.
