WPX Energy's (WPX) successful Niobrara shale discovery in western Colorado has the potential to significantly increase the company's natural gas reserves and daily production in ensuing years.

The discovery well produced an initial high of 16 million cubic feet per day at a flowing pressure of 7,300 pounds per square inch.

The well has since been choked back substantially to optimize reservoir performance and ensure maximum resource recovery. Over the past 30 days, it produced at an average rate of 12 million cubic feet per day.

WPX has the lease rights to approximately 180,000 net acres of the Niobrara/Mancos shale play that underlies the company's expansive leasehold position in the Piceance Basin.

Substantial gathering and processing infrastructure is in place to accommodate additional gas volumes from the area, as is take-away capacity from the basin. Gas produced from the Niobrara and Mancos shales can be processed without modification to existing gas treatment facilities.

Tags: WPX Energy