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Report to Northwest Oil & Gas Forum. David Grisso, Operations Field Leader, South Piceance. Garfield County Fairgrounds, Rifle, CO | June 5, 2008. Areas of Operation. Piceance Basin Operations. 12 drilling rigs currently operating

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Report to Northwest Oil & Gas Forum

David Grisso, Operations Field Leader, South Piceance

Garfield County Fairgrounds, Rifle, CO | June 5, 2008

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Piceance Basin Operations

  • 12 drilling rigs currently operating

    • 7 in South Piceance, 5 in North Piceance with Simultaneous Operations

  • 4 South Piceance work over rigs operating

  • 6 North Piceance completion / work over rigs

    • 4 work over rigs

    • 1 coil tubing working on drill outs

    • 1 stand alone snubbing unit for Simultaneous Operations

  • Current Production ~ 445 MMcf/d(265 in SP) (180 in NP)

  • 295 wells drilled in 2007

    • South – 136, North – 159

  • Active Wells and Pads

    • Producing Wells –24841472 (SP) 1012 (NP)

    • Multi-well pads – 343 279 (SP) 64(NP)

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South Piceance Rig CountMamm Creek – 7 Rigs

Mamm Creek – 3 rigs

Parachute – 3 rigs

Orchard – 1 rig

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Drilling Activity – South Piceance

Commissioned 5 new technology drilling rigs

Reduced drilling cycle time by 25%

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South Piceance 2007 Key Learnings and Accomplishments

Air Emissions Programs

  • Solar Powered Compressor Test

    • Initial test complete, currently testing on second more complex site.

  • Combustor Retrofit Project - Completed

  • Vapor Recovery System Alternative Tests

    • Captures vapors before entering tanks

    • Eliminating GHG that are created by combusting VOCs (5,823 ton/yr CO2)

    • Additional recovery of 1 – 2 bbls condensate/ day

    • Recover 56 mcfd

    • Future Installations expected

      Satellite water transfer stations – truck traffic reduction

    • Grass Mesa – 85% reduction in traffic up Grass Mesa Road

    • Railsback – 70% reduction in traffic from East Mamm

    • Rose Ranch – 75% reduction in traffic West Mamm

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Drilling Activity - North Piceance

2008 Planned Wells

North Parachute 100

All drilling operations are currently on the North Parachute Ranch

We are utilizing Simultaneous Operations on all pads

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North Piceance

20 well pad online, 32 well pad on the drawing board.

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Midstream Services

  • EnCana is in the process of permitting the Collbran Valley Pipeline. This will be a 22 mile, 24-inch pipeline that will start near Molina and end approximately 5 miles West of Parachute.

  • Permitting of the East Dry Hollow Loop Pipeline in the Mamm Creek Field. The two phases combined, will be approximately 7 miles of 20-inch pipeline which will allow 3rd party companies to take advantage of EnCana’s existing infrastructure and deliver gas into our system. 1st phase construction to start June  ' 08

  • Moffat Ridge Pipeline Post-Reclamation - Orchard Unit; Grand Junction Bureau of Land Management took their Washington Team on a field trip in April and toured this pipeline site. Their Washington lead took pictures to use as good examples of Best Management Practices (BMPs) and is presenting them in classes which are being taught around the country.

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Community Relations

6th Annual Energy Expo

Thanks to All that participated!

This year over 400 students attended in the morning session,

With over 2,000 attendees in the afternoon, not including our exhibitors.

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Community Relations

  • This is a cooperative program focused on being a good neighbor in the communities in which we operate.

    • We conduct business in a way that provides social and economic benefits to the community while striving to minimize industry impacts such as traffic, dust, noise and garbage issues.

    • This program focuses on these impacts as well as on encouraging those representing the Industry, field employees and contractors, to get to know our neighbors and to effectively communicate with members of the community.

    • It represents a partnership amongst Operators, contractors and the community at large.

  • Participants include EnCana, Williams, Laramie Energy II, PetroHunter, Noble Energy, Delta, PXP, Garfield County Road & Bridge & Sheriff’s Departments & others.

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