Bayswater Exploration & Production, Denver, has closed a deal to acquire Denver Julesburg (DJ) basin assets from Nickel Road Operating LLC, Denver, adjacent to Bayswater's existing holdings in Weld County, Colo., the company said in a release July 28.
Assets include 2,752 net leasehold acres, 161 net mineral acres, 17 producing wells (5 operated, 12 non-operated), working interest in 18 drilled-but-uncompleted wells, and 68 operated well permits.
With the acquisition, Bayswater now has 30,000 acres in Weld County, about 240 producing horizontal wells, a field office in Eaton, Colo., and daily production of about 30,000 boe/d. The company expects to begin drilling operations on the newly acquired leasehold in October 2022.
Nickel Road retains the majority of its production and operated drilling and spacing units in Wattenberg field, as well as 100 approved permits for extended reach horizontal wells, the company said in a separate release.
In addition to its DJ position, Bayswater has a 46,000-acre operated position in northern Midland basin in Texas that is currently being developed under a continuous two-rig drilling program. The company operates 65 producing horizontal wells with the recent completion of a 21-well, three pad development and anticipates 2022 yearend production to be about 25,000 boe/d.
Bayswater is delineating three Wolfcamp benches (A, B, and D) and one Lower Spraberry bench across its contiguous acreage position. Operations are supported by a freshwater supply and delivery system, a saltwater gathering and disposal well system, an amine plant (under construction), and an oil gathering pipeline network directly connected to the Delek - Big Spring refinery, Bayswater said.
