This news is classified in: Traditional Energy Oil and Gas
Jan 18, 2017
Petrogas Company, Inc., today announced that it participated in a government auction by the Bureau of Land Management ("BLM") and successfully purchased 161 acres of oil and gas leases in Colorado.
More specifically, the company purchased leases in Lincoln County, CO. The leases are on a 10-year primary term and the company will pay 12.5% in royalties to the government once production begins.
"We are pleased to have participated in these government auctions and won. These leases will be our first in Colorado and with oil prices hovering near a high we are looking forward to exploring the potential in this area," said Mr. Huang Yu, CEO of Petrogas Company.
The total crude oil production in Colorado for 2015 was around 118 million bbl and the total natural gas production approximately 2 billion mcf according to Drillingedge data.
More than 100,000 wells are drilled in Colorado in part by large companies including Noble Energy, Exxon, BP and Chevron.
Update About Colorado's O&G Reserves
The U.S. Geological Survey (USGS) discovered this past June that Colorado has 40 times more technically recoverable natural gas resources than previously estimated. The discovery makes Colorado's Mancos Shale in the Piceance Basin the second-largest known shale reserve in the country (after Pennsylvania), assessed by the USGS with over 66 trillion cubic feet of gas, 74 million barrels of shale oil, and 45 million barrels of natural gas liquids.
