By OGJ editors
HOUSTON, May 16 -- Plains Exploration & Production Co., Houston, reported success developing deeper formations in Inglewood field in the Los Angeles basin and is acquiring properties in the Los Angeles and Ventura areas.
Meanwhile, the company boosted its 2005 capital budget 15% to $375 million reflecting Gulf Coast-Gulf of Mexico exploration opportunities, busier California land drilling, and expected hikes in service costs.
Plains added a third drilling rig in March 2005 at Deep Inglewood, where 17 wells are producing 2,500 boed.
Each well is completed from at least one of the productive reservoirs with no dry holes, and most wells have pay in other zones to be completed later (see chart, OGJ, Apr. 19, 2004, p. 37). The oil is typically 27° gravity with higher gas-oil ratios than oil from the shallower Inglewood formations.
Three more Deep Inglewood wells are in completion, 2 were drilling, and 40-45 Deep Inglewood wells and 10-15 shallow waterflood wells are to be drilled in 2005.
Early in the second quarter, Plains plans to close the acquisition of southern California oil and gas properties being acquired from an undisclosed private seller for $119 million.
The properties, which average 2,000 boed net and have 17.4 million boe in proved reserves, also have potential in field extensions, new fault blocks, and deeper zones.
The largest fields are Las Cienegas, near and geologically similar to Inglewood and its satellites, and Sansinena field near Plains's Montebello field.
The company will drill 234-245 wells in California, up from 200 in the original budget. Recent rain and mudslides delayed drilling/completion and cut production volumes but otherwise had no adverse effect on operations.
