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Colorado Front Range Oil Bonanza could mean billions in Revenue

by Roberts Johnson and Rachel Diedrich, Real Estate B

Front Range oil bonanza could mean billions in revenues for Colorado

By Mark Jaffe
The Denver Post
Updated: 11/15/2011 09:11:05 AM MST

Large drums fill up with oil in a farmers field in Weld County in this March, 2010 Denver Post file photo. (RJ Sangosti, The Denver Post)
(Click to enlarge)

Colorado's Front Range is sitting on top of as much as a billion barrels of oil, which could inject $4 billion a year in revenues into Colorado's economy, according to one estimate.

Houston-based Anadarko made the oil-reserve estimate based on 11 horizontal wells it drilled in the Wattenberg Field in Weld County.

The company put the range of the reserves as equivalent to 500 million to 1.5 billion barrels of oil — about 70 percent of the production in oil, the rest in natural gas.

"This is going to have huge implications for the economy of Colorado," said Pete Stark, vice president for industry relations at IHS, a Denver-based consulting firm.

A reserve that size could generate 150,000 barrels a day and, assuming oil is $80 a barrel, provide more than $4 billion in annual revenues, Stark estimated.

The total value of goods and services produced in the state in 2010 was $235.15 billion.

"Anadarko's announcement today shows once again that Colorado is a leader in the energy sector of our country's economy," Gov. John Hickenlooper said in a statement Monday. "We are thrilled to see the company plan a significant investment in Colorado."

Anadarko's wells had initial production averages of 800 barrels a day — with the best well producing 1,100 barrels a day.

The wells were drilled in the Niobrara formation, which is more than 6,000 feet deep and runs from El Paso County to the Wyoming border.

To get oil from the shale layer, companies drill horizontally through a formation and "hydrofracture" the well — pumping in water, sand and chemicals under pressure to break up the rock.

Anadarko said it also found oil in the neighboring Codell formation. While a "significant" shale discovery, it is smaller than the 9 billion-barrel reserve in North Dakota's Bakken Field, Stark said.

Anadarko plans to quadruple its drilling pace to 160 wells a year and drill between 1,200 and 2,700 wells in the Wattenberg Field.

The cost of each well has averaged between $4 million and $5 million, said John Christian sen, an Anadarko spokesman.

The Anadarko estimate is just for the 100-square-mile Wattenberg Field, which includes Weld County and small parts of Adams, Broomfield, Boulder and Larimer counties.

Anadarko is also doing exploratory drilling in Arapahoe County, and Chesapeake Energy has filed plans to drill in Elbert and Douglas counties.

Ultra Petroleum is set to drill exploration wells in El Paso County.

"The Anadarko results don't say anything about the prospects to the south," said Ward Polzin, a managing director at Tudor, Picking & Co., an energy investment bank.

The Wattenberg was always seen as the most promising area, Polzin said.

"What this does is give drillers through the area more confidence," Polzin said.

The prospect of accelerated drilling raises concerns among environmental groups.

"The announcement is a mixed bag," said Gary Wockner, director of the Clean Water Action and Clean Water Fund in Colorado. "Every well that is drilled takes more water and poses pollution from fracking fluids."

"We think the economics of these wells are very good," Christiansen said.

Anadarko holds interests in more than 350,000 net acres in the Wattenberg Field and operates more than 5,200 existing wells.

Outside the Wattenberg, Anadarko holds another 550,000 acres in Colorado.

Mark Jaffe: 303-954-1912 or mjaffe@denverpost.com



Read more: Front Range oil bonanza could mean billions in revenues for Colorado - The Denver Post http://www.denverpost.com/business/ci_19336905#.TsLfepqKib4.email#ixzz1doWT8TN0
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House inventory drops while sales jump!

by Roberts Johnson and Rachel Diedrich, Real Estate B

Homes on market in metro Denver dropped in October as sales jumped

By Margaret Jackson
The Denver Post
Updated: 11/03/2011 01:12:16 AM MDT

(Hyoung Chang, The Denver Post)

The number of homes on the market plunged 27.7 percent in October compared with the same month a year ago, according to data released Wednesday.

There were 15,794 homes on the market last month, compared with 21,851 in October last year, according to an analysis of Metrolist data by real estate consultant Gary Bauer.

That's sparking concern that the number of transactions will drop sharply in November, December and January.

"The active-listing inventory is a new low for the year," Bauer said. "Existing home owners are taking a wait-and-see attitude and may not put their homes on the market until spring. If there's no inventory out there, why are you going to look?"

Meanwhile, the number of homes sold in October jumped 12 percent compared with the same month last year, according to the report.

Last month, 3,183 homes sold, compared with 2,842 sold during October last year, the report showed.

For the year to date, the number of homes sold remained flat, with a total of 33,163 sold this year compared with 33,128 last year.

Meanwhile, the median price for a single- family home showed a 1.8 percent year-over- year decline, from $230,250 last year to $226,021 last month.

Median condo prices increased 1.2 percent to $125,000, up from $123,500 in October 2010.

Margaret Jackson: 303-954-1473 or mjackson@denverpost.com



Read more: Homes on market in metro Denver dropped in October as sales jumped - The Denver Post http://www.denverpost.com/business/ci_19252044#ixzz1cmOWZPBU
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Aspen doing well in down housing market

by Roberts Johnson and Rachel Diedrich, Real Estate B

ASPEN, Colo.—Home sales in the Aspen area are surging even though the housing market is in a slump nationwide.

Real estate officials say annual sales from 2009 and 2010 will be easily topped this year. Real estate officials say total sales topped $1 billion in October, an increase of 19 percent over the same period last year.

In September alone, 86 real estate transactions were valued at more than $137 million.

However, it isn't all good news. According to the Aspen Daily Times ( http://bit.ly/rt8WAR), Land Title Guarantee Co.'s report noted there were 45 bank sales of property in Pitkin County for a total of $30 million through the first three quarters of 2011.

The Associated Press

Oct. home sales climb vs. Oct. 2010

by Roberts Johnson and Rachel Diedrich, Real Estate B

The number of homes sold in October jumped 12 percent compared to the same month last year, according to data released today.

Last month, 3,183 homes sold, compared with 2,842 sold during October last year, according to an analysis of Metrolist Inc. data conducted by real estate consultant Gary Bauer.

For the year to date, the number of homes sold remained flat, with a total of 33,163 sold this year compared to 33,128 last year.

Meanwhile, the median price for a single-family home showed a 1.8 percent year-over-year decline, from $230,250 last year to $226,021 last month.

Median condo prices increased 1.2 percent to $125,000, up from $123,500 last October.

The number of homes on the market in October plunged 27.7 percent to 15,794, compared to 21,851 for the same month last year.

Margaret Jackson: 303-954-1473 or mjackson@denverpost.com

Displaying blog entries 1-4 of 4

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Roberts (Bobby) Johnson
Cool Denver Homes, Inc.
2314 Curtis Street
Denver CO 80205
Roberts Cell: (303) 525-7599
Fax: (303)9635335

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