Evolution Petroleum Corp., Houston, and PEDEVCO Corp. agreed to jointly develop PEDEVCO's Chaveroo oil field in the northwest shelf of southeastern New Mexico, a conventional oil-bearing San Andres field in the Permian basin in Chaves and Roosevelt Counties, the companies said in a joint release Sept. 13.
Chaveroo field was originally developed with vertical wells on 40-acre spacing. PEDEVCO has drilled 10 horizontal infill wells on 20-acre spacing which yields most of the field's current production, the companies said.
The agreement covers about 16,000 acres with average working interest and net revenue interest of 100% and 82%, respectively, all currently owned by PEDEVCO.
Evolution will farm-in for an average 50% working interest in future horizontal drilling locations on a block-by-block basis with PEDEVCO remaining as operator, the companies said.
Estimated original oil in place at Chaveroo field is about 700 million bbl with less than 5% recovered to date.