Quick Note on Encana, San Juan Basin -- Nothing To Do With The Bakken, But Helps Put The Bakken In Perspective

First, from "earnings central": Encana (ECA): beats by 16 cents; earnings conference call:

Our San Juan wells have consistently performed at or above our tight curve and we view the play as having a low capital risk. Estimated ultimate recovery ranges are approximately 200,000 barrels to 700,000 barrels of oil equivalent. We drilled two net wells during the quarter for a total of 16 wells drilled to-date. Our last five wells delivered 30-day initial production rates of 150 barrels to 700 barrels of oil equivalent per day with roughly 80% of the production producing from oil.

Current well cost averaged $5 million to $6 million per well. We’ve identified 150 to 300 comparable quality gross well locations so far in the core area with the potential for significantly more locations across the rest of our acreage position. We are in the process of adding to our land position and we’ll consider allocating additional capital to the play in the second half of the year. We are currently running two rigs in the San Juan and may add an additional one rig by year end. We expect 2013 production from this play to average approximately 900 barrels of oil equivalent per day with an exit of over 1,700 barrels of oil equivalent per day.

Also, see San Juan Basin at the sidebar at the right. It's hard to believe: MDW first blogged about the San Juan Basin back in June, 2011.