By OGJ editors
HOUSTON, Oct. 30 – The Cave Pool Unit in the Eddy County portion of New Mexico’s giant Grayburg-Jackson field could be redeveloped under an agreement between Doral Energy Corp., Midland, Tex., and Blugrass Energy Inc.
Doral Energy acquired from Blugrass a 40% working interest in and is operator of the 2,800-acre Cave Pool Unit 5 miles northwest of Loco Hills. Blugrass Energy owns the other 60%.
The unit is adjacent to three leases owned and operated by Doral that produce from six wells in the Grayburg and San Andres formations and contains nine proved undeveloped drilling locations in Square Lake field.
Cave Pool Unit produces 10 boe/d from 39 Grayburg wells drilled on 40-acre spacing. Doral Energy will rework 10 of the wells.
Redevelopment of the unit as a 20-acre five-spot Grayburg waterflood could add 100 development drilling locations and more than 3 million boe of potential gross reserves.
With the acquisition, Doral Energy owns 8,920 net acres in Eddy County and 186 existing wells in the Artesia-Vacuum Trend.
US Department of the Interior.
File photo from PDVSA..
