The Wolfcamp Joint Venture consists of drilling and completing an 8,500’ Wolfcamp Lime horizontal development well located in Irion County, Texas, located in the southeastern region of the Permian Basin.
The proposed Hoyt 2CH well will be drilled to a vertical depth of 4,500’ with a 4,000’ horizontal leg. Currently, ENR Operating holds leases on approximately 1,400 net mineral acres in Irion County, Texas which covers the key structural features of the proposed well.
If successful, the Wolfcamp Horizontal Project could result in the production of 5,000,000 to 8,000,000 barrels of oil over the next 10 to 20 years, from as many as 10 future horizontal wells.
Based on data collected from 21 wells drilled through the Wolfcamp section, a detailed geologic study of the project has been conducted by carefully integrating all well data, creating a much better interpretation of the geologic setting and illustrating the value of the project.
The resulting interpretation is illustrated below in the “Structural Top Wolfcamp Lime Map”. This detailed map illustrates multiple structural boundaries of productive Wolfcamp Lime sections with substantial accumulations of oil and gas exist within multiple structures and fault blocks across the project acreage.
The proposed initial well will be drilled horizontally to achieve maximum penetration of the productive pay section. The Wolfcamp Limestone formation is ideal for the application of horizontal drilling with proven vertical pay thicknesses ranging from 500 to 600 feet (on the project acreage) and diagenetically-controlled porosity zones (with varying porosities and permeabilities throughout the section). Accessing the formation via a horizontal wellbore converts 100 to 150 feet of vertical net pay to 4,000 feet of horizontal pay, thus resulting in a significant increase in reserves of 4 to 5 times that of a conventional vertical well. Refer to the Horizontal Well Diagram below.
The project is in the southeastern region of the Permian Basin which is one of the largest oil and gas basins in North America encompassing over 86,000 square miles. The Permian Basin is bounded to the south by the Marathon-Ouachita structural belt, on the west by the Diablo Platform and Pedernales Uplift, on the north by the Matador Arch, and on the east by the Eastern Shelf of the Midland Basin and the western flank of the Bend Arch trend. The basin is about 250 by 300 miles in area and is separated into eastern and western halves by the north-south trending Central Basin Platform.
The majority of hydrocarbon production in the project area of the Permian Basin is from sandstone reservoirs from Pennsylvanian Age and carbonate reservoirs from the Early to Mid-Permian Age rocks such as the Wolfcamp Limestone and Wolfcamp Reef formations. Oil production in this area is characterized by oil accumulations in combined structural-stratigraphic traps in Permian age platform-edge carbonate-buildup/Lime reservoirs.
Reservoirs in platform-edge carbonate-buildups or Lime banks generally consist of porous packstone, wackestone, grainstone and carbonate debris flows material contained within massive limestone beds/buildups with diagenetically-controlled porosity zones. Carbonate reservoirs of this type have porosities that range from 5 to 10 percent and permeabilities of 1 mD to 5 mD, with maximum relief ranging from 150 to 300 feet.
Well control in the project areas illustrates a Permian-Wolfcamp carbonate Lime buildup, with multiple structural highs bounded or isolated by faulting primarily on a north-south axis, typical for a paleo-margin environment in the transition zone from the eastern shelf dropping into the basin.
This provides evidence of a classic carbonate Lime feature with an updip structural high within the pathway of the proposed wellbore with high structural relief (70 to 80 feet), and a fault trap to the west and structural closure via well control to the north and south.
Cumulative production from similar fields in the Permian Basin through 2015 was approximately 700 million barrels of oil from Permian Wolfcamp-producing horizons. ENR Operating plans to drill the proposed well (Hoyt No. 2CH) across the primary Wolfcamp section, in Section 18, containing significant accumulations of oil and gas.
The proposed well will be drilled to an approximate depth of 3,900’ where the wellbore will be kicked-off (start the curve to horizontal) to encounter the target section of the Wolfcamp Limestone formation (at 4,400 to 4,500 feet) on a horizontal tract to total depth/length (TD) of 8,500 feet.
Following drilling and testing, production casing will be set from the surface to the desired TD and the well completed for production via perforating, acidizing and multi-stage fracturing.
Target Rate 543 BOEPD (gross) or 223 BOEPD (net) – Currently Producing 111 BOEPD or 45.5 BOEPD (net)
Target Reserves 550 MBOE (gross) or 226 MBOE (net) – Only 10% Incremental Needed over Current Cumulative
Production of 5.4 MMBOE
Total Projections at Risk Capital (after Tax Benefit) for Drill, Test and Completion: $60,000
Jeremy has over a decade of experience in the oil and gas sector. Prior to forming Eagly Natural Resources, he provided consulting services overseeing the start up and expansion of private equity departments for oil & gas producers.
He has spearheaded the efforts behind acquiring over 4,000 net mineral acres across Texas and Oklahoma. Eagle’s portfolio of held-by-production (HBP) properties currently features minority and majority interest ownership in over 200 producing wells.
Jeff has a Bachelor of Science degree in Geophysics from Penn State University. He has over 35 years of seismic interpretation and subsurface integration experience.
In January 1985 were he was selected as one of five lead Amoco geophysicists to evaluate Tenneco’s Gulf of Mexico properties in a $2.6 Billion acquisition attempt, and evaluated three of Tenneco’s largest offshore gas fields.
With an impressive well success record over 75% on 45 discovery wells drilled to date.