IHS studies complexity of Bone Spring oil play

The complexity of the Bone Spring horizontal oil play, which spans southeast New Mexico into West Texas, appears to offer limited upside for most exploration and production companies, reports IHS Herold in a report entitled, “Bone Spring Regional Play Assessment.”
April 27, 2012

The complexity of the Bone Spring horizontal oil play, which spans southeast New Mexico into West Texas, appears to offer limited upside for most exploration and production companies, reports IHS Herold in a report entitled, “Bone Spring Regional Play Assessment.”

Sven Del Pozzo, IHS senior principal energy analyst, noted, “We’ve seen renewed drilling in the Bone Spring horizontal oil play since the play’s early wells were drilled 10 years ago. But with the exception of Concho Resources, which has managed to achieve consistently outstanding results in the play, most E&Ps have strikingly similar, stable-to-disappointing results.”

The Delaware basin play, which includes the Avalon-Leonard shale, features stacked, multipay reservoirs, each with diverse rock properties.

“It is not a typical resource play,” Del Pozzo added. “The presence of localized sweet spots in the Bone Spring led us to stray away from categorizing it as a resource play. Instead, we have divided the Bone Spring into four subplays.”

IHS said the New Mexico Avalon shale, also called the Leonard shale by EOG Resources Inc., has the most robust and consistent profitability of the subplays.

About the Author

Paula Dittrick

Senior Staff Writer

Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.

Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.

Sign up for Oil & Gas Journal Newsletters