More West Texas overthrust exploration set

Cantex Energy Corp., San Antonio, in partnership with Big Canyon Energy, signed an exploration and development agreement with Slawson Exploration Inc., Wichita, covering the Big Canyon prospect in Terrell County, Tex.

Slawson Exploration will earn a 45% working interest in operating the project, which covers an initial 17,151 acres of prospective natural gas lease held by Big Canyon Energy and 7,680 acres of lease option. Beyond the lease and option coverage, the total area of mutual interest between the parties totals 89,929 acres.

Cantex Energy has the right to participate throughout the area of mutual interest based on Cantex’s payment of future pro rata drilling and any further lease-option costs. Big Canyon Energy et al. retains a 39.375% working interest, with Cantex Energy holding the remaining 15.625% working interest.

The acreage is in the West Texas overthrust area of the Val Verde basin.

Cantex Energy earned the right to participate in the Big Canyon prospect by funding and deploying a seismic survey in 2004-05. Interpretation suggests the presence of at least five large imbricate fault closures that cover 10 sq miles or more, highly similar to the character of Pinon field in Pecos County 40 miles northwest of and on trend with the prospect (see cross sections, OGJ, Nov. 24, 2008, pp. 34-35).

The Big Canyon prospect is further set up by the presence of potentially commercial quantities of gas as close as 5 miles from the leasehold, and in the AMI, a discovery well drilled in 2004 by SandRidge Energy Inc.’s predecessor Riata Energy Inc., that flowed almost 2 MMcfd on a ¹⁶/⁶⁴-in. choke. This “show” is believed to have occurred in the objective thrusted Pinon field-type Caballos reservoirs.

Pending working interest decisions and actions, the companies expect to participate in exploratory wells on two of the five imbricate closures in 2009.

Pan Orient Energy Corp., Calgary, is shooting 800 line-km of 2D seismic on the Citarum PSC in West Java, Indonesia.

The survey targets several large, surface-expressed leads independent of the target tested at the Pasundan-1 exploration well.

Drilled a year ago by Citarum’s former operator, the well cut 500 m of limestone with 21 m of cavernous reservoir in its upper portion. Pan Orient tested the upper zone and found it to be water-bearing. Further exploratory drilling is planned in late 2009 on the block, in which Pan Orient has 69% interest and is operator.

Saratoga Resources Inc., Houston, plans seven through-tubing plugbacks in giant Grand Bay oil and gas-condensate field in Plaquemines Parish, La., in the first quarter of 2009.

The $525,000 program is expected to add 100 b/d of oil and 1.3 MMcfd of gas production. The company is in the midst of full-field studies of Grand Bay and Vermilion 16 fields.

The company said it will consider several development drilling options as the price outlook stabilizes (OGJ Online, Dec. 2, 2008).

Industry has drilled well over 700 wells to date in the Woodford shale in the Arkoma basin in southeastern Oklahoma, said Newfield Exploration Co., Houston.

State regulators have permitted drilling 400-500 ft closer to the north and south lines of spacing units, allowing longer laterals in the Woodford. The company is also in planning stages for an 8,000-10,000-ft “superextended” lateral in the Woodford.

Newfield expects its entire position of more than 165,000 acres to be held by production by the end of 2009. The current figure is 85%. Newfield is attempting to complete its first horizontal well in fractured Pennsylvanian Wapanucka limestone above the Woodford.

South

Comstock Resources Inc., Frisco, Tex., said its Leyendecker-10 exploratory well in Fandango gas field, Zapata County, Tex., cut 300 ft of net pay in three zones. Comstock, with 100% working interest, is running production casing and expects to start production in early January 2009. TD is 16,200 ft.

It plans to spud this month Trevino-3 projected to 14,800 ft and Muzza-13 to 16,000 ft, both targeting multiple objectives.

Newfield Exploration Co., Houston, has boosted oil production from giant Monument Butte field in Utah’s Uinta basin to more than 17,000 b/d from 7,500 b/d in 2004 when the company acquired the property.

The company will drill 250 wells at Monument Butte in 2009 as it continues to expand the field to the north.

The field had more than 1,100 producing wells at the end of 2007, and drilling is on 40-acre and 20-acre spacing. Thousands of infill locations remain to be drilled.