PDC’s DJ Well inventory climbs 99 in June with latest Colorado regulatory approval

PDC Energy Inc. has obtained approval from Colorado regulators for a development program of 30 oil and natural gas wells in Weld County.

The Colorado Oil and Gas Conservation Commission (COGCC) has approved the Broe Oil and Gas Development Plan (OGDP), PDC said Wednesday.

The Denver-based producer acquired Broe OGDP in Weld County in May when it acquired Great Western Petroleum LLC. The COGCC approval marks PDC’s first permit on Great Western’s acreage.

“Broe is the second PDC OGDP to receive unanimous approval this month, and the third approval in the past 12 months,” said David Lillo, PDC’s senior vice president of operations. “Our integration of Great Western’s assets continues to go well, as evidenced by this approval.”

The Broe plan, coupled with COGCC’s approval of Kenosha’s OGDP earlier in June, results in an inventory gain of 99 wells for the month, PDC said. The company told NGI that it will soon hold 505 permits and 181 drilled but uncompleted (DUC) wells.

“We look forward to building on this momentum with our Guanella Global Area Plan and future OGDPs,” Lillo said.

On an operational basis, the new permits augment “an already established multi-year inventory” of projects in the Denver-Julesburg (DJ) Basin, Lillo said. This gives PDC “good visibility through 2024 at current activity levels.

COGCC Chairman Jeff Robbins praised PDC’s Broe plan during the permit approval hearing.

“As with Kenosha’s application that we recently reviewed, I think this is an excellent example of a protective license under Colorado’s oil and gas development rules,” he said.

Colorado implemented sweeping changes to its oil and gas regulatory system last year.

In May, PDC forecast average production of 235,000 to 245,000 boe/d across its assets, which span the DJ and Delaware Subbasin of the Permian Basin, for the second quarter of 2022.