Major gas producer BP touts productive well in New Mexico

Markets Associated Press

International producer BP is pointing to northwestern New Mexico as a possible significant new source of natural gas for the United States.

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The company announced Monday that it brought online one of the most productive wells in the Mancos Shale that the San Juan Basin has seen in more than a decade. The basin spans New Mexico and southern Colorado.

BP says an average of nearly 13 million cubic feet of gas a day was pumped during an initial 30-day period.

Company officials say the recent test suggests the region could become one of the nation's leading shale plays. Some industry analysts want to see if new wells post similar results.

BP acquired thousands of acres in the region in 2015 in hopes of tapping the shale and expanding its position in the basin.