Project Profile
Value: US$2 billion
Location: The lines of the Denver and Rio Grande Western railroad, at Florence, Colorado, USA
Production: 707 bopd
Reserves: Unknown
Area: 22,672 gross acres
Start-up Year: unknown
The Florence Oilfield was discovered in 1876 and has produced over 15 million barrels of oil. The field is is located on the lines of the Denver and Rio Grande Western railroad, at Florence, Colorado in USA. The Florence produces from the fractured Pierre Formation from about 3,000\'. Recent well have on average come into production at 225 bopd with no water. Because of the fractures, initial production varies between 200 to 500 bopd. The average field production at Florence over the 12 months until March 2012 was 707 bopd from 21 wells. Twenty seven additional drillable Pierre prospects have been identified on 3D seismic. The seismic data covers most of the 22,672 gross acres that are under lease in the oilfield. Incremental Oil and Gas owns and operates the field with 100% interest.
There is a significant untapped potential in regionally productive reservoirs below the Pierre Formation including the Niobrara Formation, though there are no further development plans for any resource that may lay within the Niobrara Formation at present.
Florence has produced oil for many decades from vertical wells at modest rates in some oilfields north of Florence in the Denver Julesburg Basin. In the recent years, the application of horizontal drilling and multi-stage fracture stimulation have resulted in a number of wells producing in excess of 1,000 bopd, with prognosed unlimited recovery per well in excess of 300 thousand barrels.
In March 2017, Incremental Oil & Gas sold its 100% stake in Florence to a US-based subsidiary of Austin Exploration Ltd. for US$2 million. The deal will become effective on December 31, 2016. Incremental retains 2.5% overriding royalty interest in any yields eventually realised from the Niobrara Formation. Incremental will use the funds from the sale to service its debts.
Operators:
Austin Exploration Ltd: Operator with 100% interest