Utah

By OGJ editors
HOUSTON, July 28 – Pacific Energy & Mining Co., Reno, Nev., signed a farmout agreement with Mar/Reg Oil Co. for the drilling of a horizontal leg in an existing well in Tin Cup Mesa oil field, San Juan County, Utah.

The field, discovered in 1981 by Marathon Oil Co. in the Paradox basin 21 miles southeast of Blanding, has produced more than 2.6 million bbl of oil and 3 bcf of gas from a 120-ft thick carbonate buildup in the Pennsylvanian Upper Ismay formation.

PEMC plans to spud a 2,500-ft lateral in the Federal 4-26 well in the second half of August 2009. Geological and engineering analysis indicates that a horizontal well drilled in Sec. 26 would intersect the fracture system that has not been drained by the vertically drilled wells.

The vertical 4-26 well has produced more than 156,000 bbl of oil and 355 MMcf of gas, and engineering analysis shows it did not efficiently drain the northern part of the oil field.