Milnesand San Andres horizontal infill drilling nears

By OGJ editors

Enhanced Oil Resources Inc., Houston, has permitted five horizontal 20-acre infill wells in its 4,800-acre Milnesand San Andres Unit in Roosevelt County, NM, where 40-acre development is estimated to have recovered 14% of original oil in place.

EOR Inc., which owns San Andres legacy oil fields that cover a total of 25,000 acres, plans to drill laterals as long as 2,000 ft. It will drill the first three and review results, production, and economics. If successful the company may drill as many as 30 more lateral locations in Milnesand and up to 100 in Chaveroo field.

Meanwhile, the company and Kinder Morgan CO2 Co. LP amended to Sept. 1, 2015, the initial date for deliveries of carbon dioxide to Milnesand and Chaveroo fields. Construction of a 40-mile, 8-in. pipeline to the fields from the Cortez CO2 pipeline would take 9 months. A path has been identified, and the company has negotiated right-of-way options.

The company also plans to drill wells this year in order to book reserves at the 20,000-acre Chaveroo field, where it carries no reserves at present.

EOR Inc. said, “The acquisition of legacy oilfields comes with tremendous opportunity for reserves and production growth, yet at the same time, we have to deal with poor well bore and surface conditions left by prior operators. Last year alone, we spent considerable time, effort and finances working over approximately 60 well bores, bringing 38 wells back to production and plugging and abandoning 12 well bores.

“During 2012 we have allocated up to $1.7 million to work over, reactivate and plug several wells across our fields, with a focus towards getting our Chaveroo field into compliance. While we do not expect significant production growth from these endeavors, we expect that our considerable effort to right the wrongs of previous operators will ultimately reward us, longer term, with the required approvals to expand our infill programs across our fields and CO2 flooding of both Milnesand and Chaveroo.”

The company may also make acquisitions near its existing fields, which produced a combined 900 b/d of oil in December 2011 and January 2012.

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