Frontier basins seeing new exploration in New Mexico

Sept. 16, 1996
Ronald F. Broadhead New Mexico Bureau of Mines & Mineral Resources Socorro, N.M. Drilling for oil and natural gas in New Mexico remained steady in 1995, and exploration picked up in frontier areas of the state after several years of quiescence.. A total of 1,261 wells were completed in 1995, a decrease of 3% from 1,298 wells completed in 1994; 854 wells were completed in the Permian Basin of southeast New Mexico and 407 wells were completed in the San Juan basin of northwest New Mexico.
Ronald F. Broadhead
New Mexico Bureau of Mines & Mineral Resources
Socorro, N.M.

Drilling for oil and natural gas in New Mexico remained steady in 1995, and exploration picked up in frontier areas of the state after several years of quiescence..

A total of 1,261 wells were completed in 1995, a decrease of 3% from 1,298 wells completed in 1994; 854 wells were completed in the Permian Basin of southeast New Mexico and 407 wells were completed in the San Juan basin of northwest New Mexico.

In the Permian Basin, 640 wells were completed as oil producers and 123 were completed as gas producers for a success rate of 89%.

In the San Juan basin, 344 wells were completed as gas producers and 51 wells were completed as oil producers for a success rate of 97%. In addition, 32 wells were drilled to develop carbon dioxide resources in Bravo Dome field of Union County in Northeast New Mexico.

During 1995 there was significant exploratory activity in the producing Permian and San Juan basins. There was also significant exploratory activity in frontier areas such as the Albuquerque basin, the Tucumcari basin, and on Chupadera mesa of eastern Socorro and western Lincoln counties (Fig. 1 [64279 bytes]).

Table 1 [.pdf file] lists significant wildcat discoveries and Table 2 [49542 bytes] lists significant but unsuccessful wildcat wells drilled in frontier areas or on the edges of producing basins.

Permian Basin

Exploration for oil and gas was strong in the Permian Basin during 1995, with 34 significant discoveries (Table 1, Fig. 1 [64279 bytes]). Major plays were in the Delaware sands (Permian), the Bone Spring carbonates and sands (Permian), Wolfcamp carbonates (Permian), Atoka and Morrow sands (Lower Pennsylvanian), and lower Paleozoic carbonates. Significant exploratory discoveries were also made in Yates sandstones (Permian: upper Guadalupian), the San Andres formation (Permian: lower Guadalupian), Blinebry sandstones (Permian: Leonardian), Abo sandstones (Permian: Wolfcampian to Leonardian), and Strawn carbonates (Middle Pennsylvanian).

Basinal sandstone reservoirs of the Delaware Mountain Group (Permian: Guadalupian) continued to be one of the most active plays in southeast New Mexico. Approximately 150 development wells were completed in 44 oil pools in these sands during 1995. Significant oil discoveries were made in lower Delaware sandstones in Eddy County in the Maralo 1 Gold Rush 30 Federal (Fig. 1 [64279 bytes], No. 9) and in the TMBR/Sharp 1 State (Fig. 1 [64279 bytes], No. 14). In Lea County, oil was discovered in lower Delaware sandstones in the Pogo Producing 1 Tomahawk (Fig. 1 [64279 bytes], No. 26).

Basinal allochthonous carbonates of the Bone Spring formation (Permian: Leonardian) were intensely drilled in 1995. Approximately 80 wells were completed in 23 oil pools. This play had been relatively quiet for several years as shallower targets in the Delaware Mountain Group were given preference, but activity increased markedly in 1995. Several significant discoveries were made. Along the western edge of the play, oil was discovered in the Ray Westall 2 Federal Z and in the Hallwood Petroleum 1 Harkey (Fig. 1 [64279 bytes], Nos. 5, 10). In the south-central part of the play, oil was found in the Texaco 1 Malaga-Harroun and in the Pogo Producing 1 Mitchell Federal (Fig. 1 [64279 bytes], Nos. 12, 13). In the southeastern part of the play, oil was found in five wells (Fig. 1 [64279 bytes], Nos. 30-34), four of which were re-entries of existing wells.

Wolfcamp (Permian: Wolfcampian) carbonates were lightly drilled in 1995. Development was limited, with only nine wells drilled in seven pools. Exploration, however, was resurgent. Gas was discovered in the Maralo 1 State DD and in the Maralo 1 Cochita Federal (Fig. 1 [64279 bytes], Nos. 7, 11). Oil was discovered in the Maralo 1 Lowe and in the Hallwood Petroleum 1 Bass Federal (Fig. 1 [64279 bytes], Nos. 16, 25).

Exploration for gas in deep (10,000-14,000 ft) reservoirs of the Atoka and Morrow Groups (Lower Pennsylvanian) was surprisingly strong in 1995, given the weakness of gas exploration during the previous 5 years. Three wells (Fig. 1 [64279 bytes], Nos. 4, 17, 29) discovered gas in Morrow reservoirs. Atoka sandstones and carbonates are gas reservoirs throughout most of the New Mexico part of the Permian Basin. However, an oil play of modest size has emerged in the past few years in northeast Lea County. In 1995, two oil discoveries (Fig. 1 [64279 bytes], Nos. 18, 21) were made in the Atoka in this area.

Ordovician, Silurian, and Devonian carbonate reservoirs continued to be aggressively drilled in Chaves and northern Lea counties. Better definition of the small structures that form traps in the lower Paleozoic section has been made possible by 3D seismic techniques in the last few years. One significant discovery, the Manzano 1 Sundown SV State (Fig. 1 [64279 bytes], No. 15) was made in northern Lea County. However, success avoided the drillbit in Chaves County, where four unsuccessful exploratory wells were drilled (Fig. 1 [64279 bytes], Nos. 38-41). These dry holes follow a string of exploratory successes over the last few years.

San Juan basin

Drilling rates have cooled off in the San Juan basin as development of coalbed methane reservoirs in the Fruitland formation (Upper Cretaceous) has slowed in the last 3 years.

Despite this trend, development of gas reservoirs continued with more than 70 wells completed in the Fruitland coal beds, more than 40 gas wells completed in Pictured Cliffs sandstones (Upper Cretaceous), and more than 150 gas wells completed in Mesaverde sandstones (Upper Cretaceous). Despite limited exploration in this densely drilled basin, three significant discoveries were still made. Gas was found in Chacra clastics (Upper Cretaceous) in the T. H. McElvain 1 Warner Federal (Fig. 1 [64279 bytes], No. 36) and in Menefee sandstones (Upper Cretaceous) in the Dugan Production 2 Pierre (Fig. 1 [64279 bytes], No. 37). Oil was found in transgressive basal Niobrara ("Gallup") sandstones (Upper Cretaceous) in the Meridian 2 Carson (Fig. 1 [64279 bytes], No. 35).

Exploration for hydrocarbons in Pennsylvanian carbonates was rejuvenated in 1995. The Pennsylvanian section is poorly explored throughout most of the basin. Limited production of oil and gas has been obtained from relatively small structures on the western flank of the basin. About 150 wells have penetrated the Paleozoic section throughout the basin, but most of these wells were drilled on the western flank. Two wells drilled in this area during 1995 unsuccessfully tested Pennsylvanian carbonates (Fig. 1 [64279 bytes], Nos. 42, 43). The Pennsylvanian section is insufficiently evaluated throughout most of the San Juan basin.

Frontier basins

Lease plays and drilling took place in the Albuquerque and Tucumcari basins and on Chupadera mesa in eastern Socorro and western Lincoln counties.

Two wells were drilled in the Albuquerque basin as a joint venture of Davis Oil and Vastar Resources. The Davis 1-Y Tamara (Fig. 1 [64279 bytes], No. 47) was drilled in late 1995 in the northern part of the basin. To the south, the Davis Oil 1 Angel Eyes Fig. 1 [64279 bytes], No. 48) was drilled and abandoned early in 1996, apparently without reaching the main objectives in the basin, Upper Cretaceous sandstones. Modest lease activity has continued by several independents.

In the Tucumcari basin, the Labrador Oil 1 Jones State (Fig. 1 [64279 bytes], No. 46) was drilled to TD 16,923 ft in Precambrian igneous rocks. The well was spudded in late 1994 and was drilled to a depth of 11,500 ft by the end of that year. A larger drilling rig was moved onto location and the well was drilled to TD and plugged in 1995. In mid-1996, Labrador spudded a second well, the 1 Mescalero, 2 miles southwest of the 1 State Jones. That well is permitted to 19,000 ft and was still being drilled at this writing. Significant leasing by another independent, Rio Grande Resources, continued in the northern and eastern parts of the Tucumcari basin into mid-1996.

Elsewhere in northeast New Mexico, Pennzoil was reported still to be considering a program to develop and produce coalbed methane in the Vermejo formation (Cretaceous) in the Raton basin.

Amoco drilled 32 additional wells to enhance production in Bravo Dome carbon dioxide field of Union County. Most of the CO2 produced from this field is transported by pipeline to the Permian Basin, where it is used in enhanced oil recovery projects.

Although no exploratory wells were drilled in the Chupadera mesa area of eastern Socorro and northwestern Lincoln Counties, exploratory work continued on land leased during 1993 by independent Ben Donegan.

This is condensed from an article to be published in the November 1996 issue of New Mexico Geology.

The Author

Ronald F. Broadhead is senior petroleum geologist and assistant director at the New Mexico Bureau of Mines & Mineral Resources, a division of New Mexico Tech. He has worked as a petroleum geologist with the former Cities Service Oil Co. His recent work has included the petroleum geology of the San Juan, Permian, Tucumcari, and Estancia basins as well as the carbon dioxide fields of Northeast New Mexico. He has a BS in geology from New Mexico Tech and an MS in geology from the University of Cincinnati.

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