GeoDynamics Drills First Well in Denver-Julesburg Basin

Englewood, CO, January 14, 2011 --(PR.com)-- Colorado could be on the verge of a huge oil find, similar to the gushers of the days of yore, in the Denver-Julesburg Basin northeast of Denver. Colorado-based oil drilling company GeoDynamics, Inc conducted initial reviews of the area during the summer of 2010. As of January 2011, GeoDynamics has drilled the first well.

The oil in the Denver-Julesburg Basin is an already-established oil field with numerous wells within its sprawling field. New findings, however, have indicated that the northeastern plain of Colorado, contained within the basin, represents an as-yet untapped location for massive returns. Analysts have estimated that up to two billion barrels of oil could be contained within the area, with up to $160 billion brought into the Colorado economy.

Preliminary wells drilled by Houston-based EOG Resources Inc. in January 2010 produced around 14,000 barrels of oil in just ten days of work. At 1,750 barrels per day, this is a tenfold increase over what wells in the sprawling basin, which stretches across Colorado, Wyoming, Nebraska and Kansas, typically produce. If these findings hold for drilling on a massive scale, the Denver-Julesburg Basin could become the next big oil rush and a huge boon for the oil and gas industry in the U.S.

The fact that oil, rather than the more common natural gas, was found in this area is also a good sign, say oil and gas insiders. While the price of natural gas has fluctuated throughout the past several years, oil prices have steadily risen due to dwindling returns. This sudden find will allow drilling companies to kick-start their business and provide a boost to the Colorado economy as a whole. The past year has seen the discovery of five more big gushers on par with the well drilled by EOG. Geodynamics' drilling represents an early jump on what could be a modern-day, old-fashioned oil rush. If predictions are right, this could lead to up to 166 drilling permits throughout this corner of the Denver-Julesburg Basin.

Energy analysts have expressed excitement over preliminary results, though no statement has been made about GeoDynamics' recent drill. Still, EOG analyst Ward Polzin has expressed excitement about the possibility of a big oil discovery in the Denver-Julesburg basin. "If I'd pick any recent activity in...Colorado that has people excited in the gas and oil industry," Polzin stated in an interview with the Denver Business Journal, "This is it."

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