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At a glance, here's what we cover



"Gas Well in Galveston Bay Reports Initial Potential of 19+ Million Cubic Feet Per Day with High NGL’s; Two Other Bay Producers in Field Accumulate 73 BCF of Production Since January 1998" (vol. 3, issue 36)

"Regulatory Reform Committee Meets; Discusses Broad Regulatory Issues" (vol. 3, issue 35)

"South Texas Well Reports Initial Deliverability in Excess of 82 Million Cubic Feet of Natural Gas per Day!" (vol. 3, issue 35)

"Texas Land & Mineral Owners Association Vying for Spot on the Oil-Field Cleanup Fund Advisory Committee" (vol. 3, issue 34)

"Fee Increases to Take Effect Next Week; Others are Put on Hold" (vol. 3, issue 34)

New Field Discoveries:

We include articles about new field discovery applications as they are filed with the Texas Railroad Commission. The data published in the Observer is from new field discovery applications that are pending review by Railroad Commission technical staff. Staff reviews the applications and will either approve the application and set up as a new field, or will place that well into an existing field if separation (vertical/horizontal) is not proven.

"Vicksburg Oil Discovery in Starr
County; 500+ BBl/Day Initial Rate" (re: discovery article; vol. 3, issue 36)

"Barnett Shale Oil Discovery in Wise County" (re: discovery article; vol. 3, issue 36)

"Two San Miguel Discoveries in Zavala County" (re: discovery article; vol. 3, issue 36)

Drilling Permits for New Wells:

We publish summaries of all locations where an operator seeks to drill a new well in Texas. The data we include in those summaries are: 1) the County the well will be, 2) the distance of that location to the nearest town, 3) the API identification number assigned to the well, 4) the Operator of the proposed well, 5) the lease name & the acreage held in that lease, 6) well number, 7) the names of the fields that the well can be completed in, 8) the survey that the well is located (including block, section, and abstract), 9) the distance of the proposed well to survey lines, and 10) the total depth of the well

Oil Well Completions:

We publish summaries of all oil well completions in Texas. The data we include in those summaries are: 1) the County the well is located in, 2) the distance the well is  to the nearest town, 3) the completion date of the well  4) the API identification number assigned to the well, 5) the operator of the well, 6) the lease name, 7) well number, 8) the name of the field that the well is completed in, 9) the survey that the well is located (including block, section, and abstract), 10) the initial potential test of the well (in Barrels of oil per day, mcf of casinghead gas per day, and Bbls of water per day), 11) the choke size, 12) The producing method (pumping or flowing), 13) flowing tubing pressure (if available), 14) the gravity of the oil (in degrees API), 15) a description of the stimulation performed on the reservoir (if not a natural completion), 16) the total depth of the well, 17) the producing interval (indicated as perforated depths, open hole, or open annulus), and 18) the well's prior completion (if the well was a recompletion or re-entry)

Natural Gas Well Completions:

We publish summaries of all natural gas  well completions in Texas. The data we include in those summaries are: 1) the County the well is located in, 2) the distance the well is  to the nearest town, 3) the completion date of the well  4) the API identification number assigned to the well, 5) the operator of the well, 6) the lease name, 7) well number, 8) the name of the field that the well is completed in, 9) the survey that the well is located (including block, section, and abstract), 10) the initial potential test of the well (in mcf of natural gas per day, bbls of condensate per day and bbls of water per day), 11) the choke size, 12) the calculated absolute open flow, 13) the flowing pressure, shut-in wellhead pressure and shut-in bottom hole pressure, 14) the gravity of the gas and liquid hydrocarbons, 15) a description of the stimulation performed on the reservoir (if not a natural completion), 16) the total depth of the well, 17) the producing interval (indicated as perforated depths, open hole, or open annulus), and 19) the well's prior completion (if the well was a recompletion or re-entry)

Oil & Gas Hearings:

We compile articles covering all waterflood and unitization projects, applications for special field rules, increased allowable hearings (MER & net gas-oil ratios), field consolidations, and other oil and gas cases before the Railroad Commission (the state's regulatory body over the oil & gas industry). We also include articles of applications that will be coming before the Commission within one to three months (notices of hearing).

"Louis Dreyfus Discovers Deep Provident
City Field; Discovery Well Flows 15 Million Per Day" (re: hearing summary: Oil & Gas Docket: 02-0229191; vol. 3, issue 34)

"Sklar-Tex Finds New Limestone County Cotton Valley Production; Requests New Field Discovery at Hearing" (re: hearing summary: Oil & Gas Docket: 05-0227394; vol. 3, issue 34)

"Mission Resources Requests Expanded Injection Authority on its East Texas Field Waterflood Project" (re: hearing summary: Oil & Gas Docket: 6E-0228952; vol. 3, issue 36)

"Exxon Mobil requests Rules to Aid in Development with Horizontal Wells in the Block 16 Field, Ward County" (re: hearing summary: Oil & Gas Docket: 08-0229333; vol. 3, issue 37)

"Fasken Oil & Ranch to Request New Field Discovery and Field Rules for Wolfcamp Find in Terrell County" (re: notice of hearing: Oil & Gas Docket 7C-0229279; vol. 3, issue 34)

"Major Beaumont Field Consolidation in Jefferson County Requested, Hearing set to Consider the Matter" (re: notice of hearing: Oil & Gas Docket 03-0229507; vol. 3, issue 37)

Disposal Well Applications:

Each week we report all applications made for disposal wells. These reports describe the applicant, field, reservoir, location of the proposed disposal well; in addition to applied for injection volume, injection pressure and injection interval.

Sample Write Up:

District 3 - Wharton County - Commercial Facility - Unoso Operating Company LLC has applied to dispose of fluids produced from the Miocene, Frio and Yegua Formations into a reservoir not productive of oil or gas, Miocene Formation, Trans-Tex (3000 Cat) Field, I.W. Wegenhoft Lease, Well No. 1, J.A. Hamilton Survey, being 8.1 miles northwest of El Campo, Texas. This is an application for a commercial disposal facility. Applied for: injection interval of 3,022’ to 3,450’; max. injection volume of 5,000 bbls/day; max. injection pressure of 1,500 psig.

Enhanced Oil Recovery Projects:

Each week we report all approved applications for new enhanced oil recovery (EOR) projects and expansions of existing projects (adding new injection wells). The EOR projects we cover include: waterflood, miscible displacement, thermal recovery and pressure maintenance projects. Each article includes the well(s) approved for injection, the location of the proposed injectors, the maximum injection volumes approved, maximum injection pressures and injection intervals. Project data reported  by the operator (reported on Form H-1) is also included in each article (i.e. rock properties of the reservoir, engineering data, statistical data, original oil in place, and expected recovery as a result of the EOR project.)

Sample Write Up:

New Waterflood Project Approved; Tex-Mex, SE. (Wichita Albany) Field; Gaines County; District 8A:
    Permission to inject fluids into the Wichita Albany Formation through the Alley "A" Lease, Well Nos. 6I, 7I, and 8I; Caton Lease, Well No. 3I; and S. Ingler Lease Well Nos. 4I and 5I, Tex-Mex, SE. (Wichita Albany) Field, Gaines County, has been granted to Maynard Oil Company out of Dallas, Texas as a new waterflood project. The proposed injectors are located in Section 2 of Block A-30 and Section 10 of Block A-28 in the PSL Survey, 22 miles southwest of Seminole, Texas. All six wells were granted permission to inject a maximum of 1,000 barrels of salt water/fresh water per day and 460 barrels of fresh water per day at a maximum injection pressure of 3,300 psig through the subsurface injection interval of 6,700’ to 7,700’. Fresh water injection is limited to 8 million barrels for the life of the project.
    Data submitted in support of the application showed the following: reservoir discovered in February 1983; reservoir’s productive size is 4,831 acres; reservoir is dolomite; type of structure is stratigraphic; an oil-water contact is present at -4,077’ subsea; no gas-oil contact is present; initial bottom hole pressure was 3,000 psig; current bottom hole pressure is 2,000 psig; no gas cap was present originally in the reservoir and there is no gas cap present in the reservoir now; original formation volume factor was 1.36; current formation volume factor is 1.51; the drive mechanism during primary production was depletion drive.
    Continuing: 195 acres per lease in the project area; average depth to top of pay is 6,700 feet; average pay thickness is 36 feet; range in horizontal permeability is 0.01 to 40 millidarcies (3 md average); connate water saturation is 30%; average porosity is 9%; oil gravity is 36 degrees API; first well completed on lease in May 1984; 6 total wells located in this project area producing 8 barrels of oil per day per well and 77 barrels of water per day; original oil in place in the project area was 4,455,089 barrels; cumulative project area production is 839,146 barrels; current oil saturation is 63%; estimated oil saturation at abandonment is 17%; ultimate recovery of additional oil that will be recovered as a direct result of injection is 615,000 barrels; injection pattern for this project is 40 acre 5-spot; fluid to be injected is brackish water produced from the Santa Rosa and Wichita Albany Formations.

Downhole Commingling Applications:

We cover all approved applications to downhole commingle fields across the state.

Sample Write Up:

Commingling Authority Granted in Potthast Field Area; Matagorda County; District 3:
    Approval was granted on 9-30-2003 to Noble Energy to downhole commingle production from the Potthast (Frio "L" Sand) Field, Potthast (Middle Tex Miss) Field and Potthast (10500) Field through the Graffe Lease, Well No. 1 (API #321-31942), Matagorda County pursuant to Statewide Rule 10 (Oil & Gas Docket 03-0236524). For allowable and reporting purposes, this well will be assigned to the Potthast (Middle Tex Miss) Field. The approval of this application represents the first time that commingling authority has been granted for these intervals in a single well.
   The well is located 1,950’ FS’LYNEL & 730’ FSEL of the H.N. Herrick Survey, Abstract 557; 3.6 miles southwest of Blessing, Texas.
    The Graffe #1 is currently completed in the Potthast (Frio "L" Sand) Field with perforations extending from 12,152’-12,168’ and 12,174’-12,190’. The well currently makes 166 mcf/d, 20 bcpd and 5 bwpd at 100 psig. The Graffe #1 was the discovery well for the Potthast (Frio "L" Sand) Field. Noble plans to perforate the Potthast (10500) Field from 10,196’ to 10,343’ and the Potthast (Middle Tex Miss) Field from 10,530’ to 10,988’ and then downhole commingle all three completions. The estimated commingled production rate is 3,000 mcf/d and 255 bcpd. Noble stated the following in this commingling application: "Commingling will allow us to produce from the Potthast (Frio "L" Sand) longer and thus we will be able to increase ultimate reserves from 147 mmcf to 350 mmcf. The estimated reserves from the Potthast (Middle Tex Miss) and Potthast (10500) are 1.8 Bcf, estimated from log analysis."

Well Spacing & Well Density Applications:

We report applications made every week by operators for well density and well spacing exception permits (Rule 37 and Rule 38 applications). These applications represent W-1 (drilling permit application) filings that require a spacing/density exception for approval. The operators in these applications are not their own offset or have not been able to obtain waivers from all offset operators & unleased mineral owners.

Sample Write Up:

Matagorda County - Rule 37 Case No. 0232783 - Between Well Spacing exception requested by Noble Energy Inc.; 100 Glenborough Suite 100, Houston, Texas 77067; to recomplete Well No. 1, Graff Lease, 1,494 Acres, H.N. Herrick/S.F. 14100 Survey, A-557, Potthast (Middle Tex Miss) Field, Matagorda County, being 3.6 miles southwest of Blessing, Texas. The location of this well is as follows: 1,654’ from the northeast line and 5,919’ from the northwest line of the lease; 1,654’ from the northeast line and 730’ from the southeast line of the survey. As part of this application, applicant also seeks permit authority in the Wildcat and Potthast (10500) Fields. No rule exception is necessary pursuant to the field rules for those fields. This well is to be drilled to an approximate depth of 12,500 feet. (notice issuance date: November 4, 2003)

  "The valuable information in the Observer is a real asset to the Texas oil and gas industry. Thank you for your efforts to keep members of industry across Texas in the loop with reports on upcoming oil and gas hearings, Commission conferences and summaries of key hearings."

- Texas Railroad Commissioner Michael L. Williams

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