NEW MEXICO WATERFLOOD DEDICATED

June 22, 1992
Chevron U.S.A. Production Co. has dedicated its $29 million waterflood project in Arrowhead field in Lea County, N. M. The project, about 24 miles south-southwest of Hobbs, is expected to recover an added 15 million bbl of oil from the 54 year old field and extend its life into the next century. Since its discovery May 24, 1938, Arrowhead field has produced 31 million bbl of the 36 million bbl of oil estimated to be recoverable by primary methods. It reached peak production of 5,500 b/d in

Chevron U.S.A. Production Co. has dedicated its $29 million waterflood project in Arrowhead field in Lea County, N. M.

The project, about 24 miles south-southwest of Hobbs, is expected to recover an added 15 million bbl of oil from the 54 year old field and extend its life into the next century.

Since its discovery May 24, 1938, Arrowhead field has produced 31 million bbl of the 36 million bbl of oil estimated to be recoverable by primary methods. It reached peak production of 5,500 b/d in 1944.

Chevron began engineering studies in 1987 aimed at extending field life through with water injection. The Arrowhead Grayburg Unit, covering 5,922 acres, was formed June 1, 1991, for the secondary recovery project.

Since unitization, central and satellite tank batteries have been installed, as well as gathering and injection systems.

Two water supply wells have been drilled to supply injection brine from the Permian San Andres. Also, since unitization through the first quarter of this year 15 wells have been drilled, 14 producing wells worked over, and 18 wells converted to water injection. Current development operations are in townships 22s-36 and 37e.

Water injection, which began last March, averages about 15,000 b/d. At peak injection, it will average 50,000 b/d. All produced water is returned to the Permian Grayburg.

As the waterflood project matures, enhanced recovery techniques such as carbon dioxide flooding may be employed to further extend the life of the field. Chevron operates the unit with a 46% working interest.

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