In October 2010, JD Rockies Resources Limited (JDR), a 100% owned U.S. subsidiary of ITOCHU Corporation, entered into an agreement with Fidelity Exploration & Production Company (Fidelity), a U.S. oil and natural gas company, to acquire a 25% working interest in the emerging DJ Basin Niobrara play.
The agreement covers approximately 88,000 net acres of oil and gas leases pertaining to an area located in southeastern Wyoming, U.S.
The drilling of the initial Fidelity operated wells in the Niobrara play was began in 2011 4Q and operation is on going. JDR estimates that its portion of the total development costs will be approximately US$390 million. The gravity of crude oil from the Niobrara Field will be an estimated API 32～39.
Similar to the well-known Bakken play, the Niobrara play is one of the most attractive Shale Oil resource areas in the U.S. and an area where many exploration and production companies are seeking opportunities to acquire leasehold positions.
JDR and Fidelity are aiming to jointly acquire additional acreage on a long-term basis in the Niobrara play and in other areas.
In December 2012, JDR acquired 25% share of Samson Investment Company, a U.S. oil and gas development company.
