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© Chevron 2005 Chevron Piceance Basin Natural Gas Development Program Northwest Colorado Oil & Gas Forum Presented by: Michael DeBerry September 4, 2008
© Chevron 2005 Chevron Mid-Continent Business Unit 2 Piceance Natural Gas Program Update Two Recent Hand Injuries that Required Medical Attention 83 Wells on 4 Pads Have Been Drilled to Date H&P Rig 318 Celebrated One Year Injury Free KSI (Construction Contractor) Completed One Year Injury Free 30 Inch Sales Pipeline Completed in August 2008 Currently Flowing 5MMCFD Gas is Being Processed by Enterprise Enhanced Performance Through Technology/Process Improvements
© Chevron 2005 Chevron Mid-Continent Business Unit 3 Well Design TD – 200 below the WF. Average TVD ~ 5,800. KOP – Minimum 200 Max Build Rate – 3 o / 100 Max Inclination – 40 o Max Drop Rate - 2 o / 100 Average Departure ~ 1100. Section 25 shown with 64, 10 acre wells hit from three pads in valley location.
© Chevron 2005 Chevron Mid-Continent Business Unit 4 Piceance Natural Gas Program Update cont. ESHIA Being Implemented into Project Management Plan Plan Replaced Produced Water Pond with Tanks Steadily Expanding Environmental Monitoring Programs – Water Quality and Wildlife Finalized $25M Agreement with Garfield County for CR 204 Granted a $45K Grant to the De Beque School District for a Computer Lab, Software and Hardware
© Chevron 2005 Chevron Mid-Continent Business Unit 5 Piceance Natural Gas Program Update cont. Partnering with the Tamarisk Coalition on the Watson Island Project Eradication and Re-vegetation along a 70 mile stretch of the Colorado River Major Sponsor for the Robb River Rally on Sept. 13 th A Community Biking/Running Event to Continue the Vision of Completing a Trail System Along the Colorado River from Garfield County to Utah and from Grand Junction to Delta along the Gunnison River
© Chevron 2005 Chevron Mid-Continent Business Unit 6 The Future of the Piceance Program Continue Operating the Current Two Drilling Rigs Until Mid 2010. Continue Infrastructure Installation in the Clear Creek Valley. Central Production Facility Commissioning Targeted for Second Quarter 2009. Continue Interim Production Operations Until Facility Commissioning. Limited Well Completion Activity Until Second Quarter 2009.
1 Williams Current Drilling and Producing Operations n Currently have 25 drilling rigs operating in Garfield and Rio Blanco Counties. 18 in Valley and.
1 Williams Current Drilling and Producing Operations n Currently have 25 drilling rigs operating in Garfield and Rio Blanco Counties. 16 in Valley and.
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