Central Texas coast gas search bears fruit

Fig. 1 [82016 bytes]

A group led by American Exploration Co., Houston, plans to drill 40 wells this year on its Yoakum Gorge property in Lavaca County, Tex., where it is completing acquisition of a 152 sq mile 3D seismic survey.

The companies planned to spud the first wildcat to Eocene Lower Wilcox on the Central Texas Gulf Coast property in late February. They completed eight exploratory wells as commercial gas discoveries in late 1996 in Oligocene Frio, Miocene, and Eocene Yegua. Interests are American 52.5%, Louis Dreyfus Natural Gas Co., Oklahoma City, 35%, and Seisgen Resources LLC, Houston, 12.5%.

Louis Dreyfus operates all Miocene, Frio, and Yegua wells, while American Exploration operates the Upper Wilcox and deeper, high potential and high risk Lower Wilcox wells.

Gas discoveries

The eight Frio and Yegua wells drilled during October-December 1996 had combined initial flow rates of 3.730 MMcfd of gas.

The Frio completions at about 3,000 ft are the Dugat B1 and A1, Sibley 2 and 3, Lowrance A1, and Hamman 1. Dugat A1 was dually completed in two Frio sands and has Miocene pay behind pipe.

The Yegua completions at about 5,500 ft are the Low- rance B1 and Klimitchek 2.

Two Upper Wilcox wells encountered sand but were wet. They were plugged and abandoned.

The 40 wells planned this year include 32 Frio wells, four Yegua wells, and four Lower Wilcox wells. As many as three Lower Wilcox development wells could be drilled if discoveries are made.

More than half the seismic data have been pro- cessed, and interpretation is well along. All of the prospects drilled in 1996 are on prospects identified with the 3D data.

Approximate costs are $125,000 per Frio well, $225,000 per Yegua well, $275,000 per Upper Wilcox well, and $3 million to $4.5 million per Lower Wilcox well.

The volume of reserves identified was not released, but American said it was optimistic that the project will generate attractive returns on investment. The companies control about 58,000 gross acres through leases and lease options (OGJ, Nov. 4, 1996, p. 58).

Eastern tracts

East of Yoakum gorge, American might start exploratory drilling to Upper and Lower Wilcox late this year in the Speaks area.

It is preparing to start a 42 sq mile 3D survey over the Pilgreen Lower Wilcox discovery and American's Speaks area, at the northeast edge of Southwest Speaks field. Depths to Wilcox in the Speaks area would be 9,000-15,000 ft.

United Oil & Minerals Corp., Austin, completed the 1 Pilgreen Lower Wilcox discovery in early 1996 on a prospect generated by Yuma Petroleum Co., Houston. It has been flowing 4.5-5.0 MMcfd of gas from Lower Wilcox. The 2 Pilgreen logged pay in Wilcox and is being completed, and a third well, 4 Pilgreen, is to spud shortly.

American's working interests are 20% in 1 Pilgreen and slightly higher in the other two Pilgreen wells.

American has acquired 3D data over the Provident City area but is not likely to drill there this year.