The Goshen Multi-Zone Project: a Resource Area Where Multi-Stage Frac Technology May Commercialize Stacked Low Permeability, Hydrocarbon Saturated Targets

John Morel, Davis Petroleum Corp, 555 17th St, Suite 1400, Denver, CO 80202, phone: 303-623-1000, [email protected]

The Goshen Multi-Zone Project is in the northern D-J Basin, southwestern Goshen County, Wyoming. It targets a 1200' thick hydrocarbon-saturated interval from 7800 to 9000 feet deep that includes the Niobrara, Wall Creek, and Muddy formations. The project concept is to achieve commerciality though hydraulic fracture stimulation and commingling of multiple marginal zones.

This project lies to the east of the basin axis on the gently dipping eastern side of the D-J Basin. It is in an active hydrocarbon generation cell that locally reaches the gas window. Lithologies and depositional environments range from coarse clastics in delta fronts and shore faces to open marine organic shales and carbonates. The common feature is that all zones within a 1200' interval are tight and hydrocarbon bearing. Exploration wells between 1955 and 1987 had hydrocarbon shows throughout the interval, small hydrocarbon recoveries from tests, calculated pay on logs, and no water. Overlapping “sweet spots” provide multiple targets for vertical wells.

Contributions to production are anticipated from the Niobrara, Fort Hayes, Wall Creek, Greenhorn, Graneros, Mowry, and Muddy formations. Development wells are proposed with three or four hydraulic frac stages of 250,000 pounds of sand per stage. Pattern drilling is anticipated on 160 then 80 and 40 acre spacing. Projected reserves are about 0.75 BCF and 25 MBO per well. Completed well cost is estimated at $750,000. Wattenberg field is the multi-zone analog.