Why deploy resources into the Piceance in todays low-priced natural gas environment?
MCCULLOUGH: While our drilling inventory is expanding and we have more options to drill higher return wells (i.e., Marcellus, Wolfberry, and Niobrara horizontals), Piceance is still a major project area for PDC with substantial reserves, low finding and development costs, and predictable production growth. We have a sizeable investment in the play and our economics are attractive enough for us to drill today. We continue to pursue enhancement projects in our Piceance field designed to improve operating margins. These projects include our planned water disposal facility, super fracs, and other initiatives. Given the current price environment, we will likely maintain a one-rig program in our Piceance field to maintain production and convert PUDs to cash-flowing PDPs. As gas prices rebound and our economics improve, we will likely ramp up our Piceance drilling. If some of our enhancement projects drive better economics, we hopefully could add another rig sooner. OGFJ: Since assuming the h
MCCULLOUGH: While our drilling inventory is expanding and we have more options to drill higher return wells (i.e., Marcellus, Wolfberry, and Niobrara horizontals), Piceance is still a major project area for PDC with substantial reserves, low finding and development costs, and predictable production growth. We have a sizeable investment in the play and our economics are attractive enough for us to drill today. We continue to pursue enhancement projects in our Piceance field designed to improve operating margins. These projects include our planned water disposal facility, super fracs, and other initiatives. Given the current price environment, we will likely maintain a one-rig program in our Piceance field to maintain production and convert PUDs to cash-flowing PDPs. As gas prices rebound and our economics improve, we will likely ramp up our Piceance drilling. If some of our enhancement projects drive better economics, we hopefully could add another rig sooner. OGFJ: Since assuming the h
