wells drilledin as discovery rhenumberilnil*11".*, ico for oil and gas in 1984was lesr numberdr'red-in1e83 Statistics from the New Mexico Oil Conser, vision indicate that 7,794 wells were completed in 1984,down 4.0lVo from the 1,859 wells completedin 1983and down 37Vofuom the record 2,867wells completedin 1981.In the Permian Basin, southeist New Mexico, 1,154wells were completed in 1984, down from 1,178 completions in 1983;759 wells were completedas oil producers, 180 were completedas gas producers, and 215 were plugged and abandoned,resulting in a success rate of 82Vo.In the San Juan Basin, northwestNew Mexico,640wells were completed in 1984,down from 691 completions in 1982;224 wells were oil producers, 337 were gas producers, and 79 were plugged and abandoned,resulting in a successrate of.85Vo.In addition, 45 wells were drilled to further develop the Bravo Dome carbon dioxide gas field, and a high level of exploration and drilling activity continued in the TucumcariBasin.Significantexploratory wells were drilled in the not-yet-productiveRaton, Albuquerque, Acoma, Espanola, and PedregosaBasinsand in Lincoln and Dofra Ana Counties (Fig. 1). Total footage of hole drilled in 1984was 9,776,000ft, up from 9,441,000ft drilled in 1983.The averagedepth of wells drilled in 1984was 5,M9 ft,400 ft more than the averagedepth of wells drilled the previous year. The location of significant wildcat wells drilled in 1984is sh6wn in Fig. 1. Table 1 summarizes the significant wildcat discoveries, and Table2 summarizes the significant wildcat dry holes. For purposes of this report, a significantwildcatdiscooery is defined as 1) a well in which commercial-amounts of oil or gas were discovered in a formation more than 5 mi from the limits of previously discoveredpools with commercial produition from that formation, or 2) a well that had an unusually high initial potential (more than 1,000bbls oil per day or 10,000fP gas per day) and is 1-5 mi from the limits-of [eW in 1984 MeXiCO Resources, Socorro, NM byRonald F.Broadhead, Petroleum Geologist, NowMexico Bureau of MinesandMineral Table 1). Kinney (1957,p.26-27) preserrted stratigraphicchartsof oil- and gas-producing rock units in southeastNew Mexico. The DelawareBasin,the deep-marinepart of the PermianBasin,yielded severalsignificant wildcat discoveries.Oil was discovered in two wellsin Pennsylvanianrocks.The Sun No. L StateO (6) had an initial potential of 296bbIsof oil per day (BOPD) from the Cisco Series.The H. L. Brown, Jr. No. 1 State 32 (8), a workover of an abandonedMorrowan (Pennsylvanian)gas well, had an initial potential of 182BOPD from the Canyon Series. Oil was found in the Cities ServiceNo. 1 StateDW (10)in the Bone Spring Formation (Permian),and this well had an unusually high initial potential of 1,026BOPD and 25 bbls of water per dav GWPD). The Bone Spring usually irroduc-es iess than 200BOPD from individual wells. Oil was discoveredin Siluro-Devonian rocks in the Getty Oil Co. No. 1 Bunker Hill State(3), and the well had an initial potentialof 87BOPD and 73BWPD. Gaswas found in the Amoco ProductionCo. No. L Federal DH (5) in the Strawn Series (Pennsylvanian). Development drilling in the Delaware Basin was almost exclusivelyfor oil in 1984;the slack gas market was the major factor that dampened development of gas reservoirs. Major targets for oil drilling were sandstones and limestonesof the Bone Spring Formation (Permian)and sandstonesof the Delaware Mountain Group (Permian). SeveralBone Spring and DelawareMountain oil pools have been discoveredin the last 5 yrs, and developmentwells drilled in thosepools are usually successful;wells with initial potentials of 100-300 BOPD are corn- ;;il[ uptittl) -l :sPo -bPs I Lunt f__-_r I _.j_ I Socorao through potential petroleum reservoirs. Table 3 lists significantwildcat wells that were being drilled, were not completed, or were held "tight" at the end of 1984. All numbers in parenthesesthat follow ref"t_tg ,u location in Fig. 1 and a description in Table7, 2, or 3. I O Om i O SoutheastNew Mexico Drilling activity in 1984 was high in the three geologic subdivisions of the Permian Basin:the DelawareBasin,the Central Basin platform, and the Northwest shelf. Drilling activity was alsohigh on the Rooseveltuplift. The Permian Basin yielded several significant oil and gas discoveriesin 1984(Fig. 1; a 50 IOO l 5 Ok m I ATrons-Pecos Resources No I Lotigo Ronch Block A BYoies Petroteum Corp No I T-4 Cotile Co CNewkirk oil pool ! DWest Pecos I slope Abo gos O oitwett n^ e D r y n o t ew i t ho i l s h o w O S i g n i f r c o nw t itdcot welts I il drilling, not completed. or "tigf,t" ot end of t9g4 pool FIGURE l-Significant oil and gas discoveriesand wildcat dry holes drilled in New Mexico in 1984. Major geologic features are taken from Kelley (1978),Kottlowski and Stewart (1970),Meyer (1966),Molenaar (7977),Roberts etalr.(7976),Thompson and Jacka(1981),and Woodward et al. (1978). Ner.tMexico Geology May 1985 TABLE l-Significant wildcat discoveries in New Mexico in 7984;the term formation is used in an informal sense.BOPD, barrels of oil per day; BWPD, barrels of water per dav; MCFGPD, thousand ff of gas per day; owwo, old well woiked over. Northwest New Mexico In 1984, 640 wells were completed in northwest New Mexico;691wells were comNumber Location opsdq producing completion Toral Fohation oil gavity (s€ction-tomshiF pleted in 1983.Almost all of the wells drilled producing wetl number, dae dlprh ar inte*at tnirial ta"-'g*""' _on _ . Fit. 1 (mo/yr) rante, county) (ft) and lease (fr) total depth formatioi pot€nrial e-pD were in the SanJuanBasin,which is the only 1 26-45-20E, Yates Peholeum Cory. 1/84 3,900 Precambrian Abo 2,512 170MCFGPD productivebasinin this part of the state.The Chaves No.2 ExperaMa (Pernian) 2,56e FederatXP diminished rate of drilling in 1983and 1984 2 13-12S31E, Ensech Exploration 4184 12,060 was causedby a decreasedmarket for gas, Devonian Morowaf, 10,9042,003MCFGPD Chavds No. 1 State13 (Pennsylvanian) 10,945 which is the primary petroleum product of 3 33-15931E, Getty Oil Co. 984 73,5n Devoilan D€vonian 13,53887 BOPD + 5l the San Juan Basin. Chaves No. 1 Bunker Hill State 13,566 73 BWPD 4 Most drilling for oil was concentrated in 11-75-33E, YatesPetroleumCorp6184 10,016 Precambrian wolfcampian 8,238 70 BOPD + 40 R@*v€lt No. I Smiih 4 (owwo) (Permian) 8,256 160BWPD the Gallup and Dakota Sandstones(Creta5 11-185-278, Amoco Production Co. 10/84 11,915 EllenburSer Strawn 9,29s 9,293MCFGPD ceous)in SanJuan and Rio Arriba Counties. Eddy No.1 FederalDH (ordodcian) (Pennsylvanian) 9,308 In many wells, Gallup and Dakota oil is com5 12-195 28E, Sun Exploration & 1/84 11,465 Mississippian Cisco 9,s26295 BOPD Eddy ProductionCo. (Pennsylvanian) 9,546 mingled with oil produced from Graneros No. 1 StateO Shale,GreenhornLimestone,and the lower 7 19 119358, YatesPetroleumCorp. 1l/84 10,625 Pennsylvanian Permian10,37337 BOPD + Lea No. 1 Lone Siar StateAAI Pennsylvanian 10,395 120BWPD and upper parts of Mancos Shale (all Cre(owwo) taceous).Many recently completed Gallup 8 32 15932E, H. L. Brown, Jr 3t84 13,380 Devonian Canyon 10,498182BOPD Lea No. 1 State 32 (owwo) wells are located in southwest Rio Arriba lPennsylvanian) 10,508 9 16-15SJZE, Newmont Oil 2J81 12,1.68 Atokan Pennsylvanian 11,23120 BOPD + 46 County and southeastSan]uan County along Lea No. I State15 (Pennsylvanian) 11,426 10 BWPD the main northwest trend of Gallup produc10 12-18!33E, Cities Servrce 4lU 77,094 Wolfcampian Bone Spring 8,803 1,026BOPD + 40 Lea No. 1 StareDW (permian) tion. The main Gallup trend producesoil from (Permian) 8,883 2s BWPD 11 29-265-34E, Gulf Oil Corp. 8184 15,562 Atokan northwest-trendingbar-shapedsandstones. Atokan 15,4011,143MCFGPD Lea No. 1 Wilson Fed€ralC (Pennsylvanian) (Pennsylvanian) 15,424 Many wells northeastof the main trend pro12 3-20N-4W Gary Williams Oil 6lU 5,003 Cretaceous Gallup 4,493-1,52, 40 BOPD duceoil from sandstonesthat are lesspermeSandoval ProducerInc. (Cietaceous) 4,589-4,840 No. 9 Penistaja3 ableand porous than sandstonesin the main 13 9J2N-5W SovereignOil 4lu 3,181 Lewis PicturedClitrs 2,826 891MCFGPD Gallup trend (Reese, 7977). Significant oil No. 1 Soverei8n32-5 SanJuan (Cetaceous) (Cretaceous) 3,020 discoveries in the Gallup were made in the 14 12-23N-10W, Dutan Produdion Co. 2J81 1,690 Chacra Pictured Clifs 96566 MCFGPD San Juan No. I Witty (Cretaceous) (Crctaceous) 970 Dugan ProductionCo. No. 1 McDougall(15), 15 17-23N 10W, Dutan ProductionCo. 1lU 5,512 Dakora 4,160 Gallup 20 BOPD 40 which was drilled southwest of the main SanJuan No. 1 McDougall (Creraceous) (Creiac€ous) 4,423 Gallup trend, and in the Gary Williams Oil ProducerNo. 9 Penistala3 (12). mon. Improved artificial-fracturing tech- ervoirs of the San Andres and Grayburg ForDevelopmentdrilling for gas was limited niques using a methanol-foam system have mations,but not until waterflood operations mostly to the Dakota, Chacra, Point Lookminimized formation damage to the clay- are no longer capable of producini; oil eco- out, and Pictured Cliffs Sandstones and to bearing sandstonesof the Delaware Moun- nomically.Taberand Martin (1983)summa- shallow (<1,500ft) low-volume reservoirsin tain Group and have resulted in increased rized the carbon dioxide flooding process. the Fruitland Formation. The Basin Dakota production. Becauseof this increasedproThe Northwest shelf was drilled activelv. gaspool in SanJuanand Rio Arriba Counties duction, drilling for oil in Delawaresand res- and several significant wildcat discoveries continued to be developed intensely. Stone ervoirs has boomed (Mickey, 1983).Mickey were made. Oil was found in the Newmont et al. (1983)discussed the stratigraphy of (1984)reported on development of the Ava- Oil No. L State 16 (9) in the Atokan Series, Cretaceousrocks in the San Juan Basin. lon Delaware pool. Other major targets for which had an initial potential of 20 BOPD The Gulf Oil Corp. No. 1 Gallo Canyon developmentdrilling of oil in'the D6laware and 10 BWPD; oil gravity was 46" APL Oil Federal-StateDeep Unit (18) was spudded Basinare the shallow (lessthan 6,000ft) San alsowas found in the YatesPetroleumCorp. in 1983and was completed and abandoned Andres, Grayburg, and Queen Formations No. l Smith ZJ (\inWolfcampian rocks.Gas in 1984.The well is significant becauseit was (Permian)and the moderately deep (8,000- was found in the YatesPetroleumCorp. No. drilled to a total depth of 12,500ft and prob12,000 ft) upper Pennsylvanian and Wolf- 2Experunza FederalXP (1) in Abo (Permian) ably penetrated Paleozoic or Precambrian campian (Permian)reservoirs.A few devel- "tight" gas sands in the northwest part of rocks.Only about 25 wildcat wells have been oPment oil wells were completed in the t h e N o r t h w e s t s h e l f . T h i s d i s c o v e r y e x - tested in the Paleozoic section in the New Penrose zone (Permian) and in Devonian tended Abo production northwest from the Mexico part of the San Juan Basin because -slope reservoirs. The only major targets of gas west Pecos Abo pool (Fig. 1, D) in most wells stop in shallowerCretaceouspay drilling were the deep (11,000-15,000f0 northwest Chaves County. Scott et al. (1983) zones.Paleozoicproduction is limited to nine Morrowan and Atokan (Pennsylvanian)res- and Broadhead(1984a)reported on the pe- smallfieldsin the northwest part of the Basin ervoirs. Hills (1984)discussedthe relation- holeum geology of the "tight" Abo gas sands. where the Paleozoicreservoirs are Devonian, ship of hydrocarbon generation to The south flank of the Rooseveltuplift was M i s s i s s i p p i a n , a n d P e n n s y l v a n i a n . A l sedimentation and tectonicsin the Delaware dritled actively, but no significant wildcat though no shows were reported from the Basin. discoverieswere made. Development drill- Gallo Canyon (Paleozoic)section,oil was re4 nign level of development drilling also ing was done mainly for oil in Pennsylvanian coveredin the Entrada Sandstone(Jurassic) took place in the Central Basin platform, but rocks and in the FusselmanFormation (Sil- through casing perforations fuom 7,434 to no significantwildcat discoverieswere made uro-Devonian). Pitt (1,973)reported on the 7,435ft. The little known stratigraphy of Pain this mature, densely drilled area. Devel- hydrocarbon potential of pre-Pennsylvanian leozoicrocks in the San fuan Basin has been opment drilling was done mostly for oil in rocks in Roosevelt County. summarizedbyArmstrong and Mamet (1977), the San Andres, Grayburg, and Queen ForElsewherein southeas[New Mexico. ex- jentgen (1977), and Baars and Stevenson mations and in the Blinebry, Tubb, and Drin- ploratory drilling was done in Lincoln County (1e77). kard zonesof the YesoFormation (Permian). on the late Paleozoic-age Pedernaluplift (29The Albuquerque Basinwas the site of conSeveralSan Andres and Grayburg pools will 32). Those explorator| wells were'used to tinued activity in 1984.The C. R. Robinson produce oil with the aid of waterflood op- test the Abo and Yeso Formations, but no No. 1 Baca (17) was drilled on the Hubbell erations, which continued to be developed discoverieswere made. The YatesPetroleum Bench, a shallow fault block; Pennsylvanian in southeastNew Mexico. Eventuallv, carbon Corp. No. 1 Dog Canyon Federal YF (45), rocksbetween1,830and 1,850ft were tested, dioxide flooding will be used in enhanced- alsolocatedon the Pedernaluplilt, was drilled and a small oil show was reported. In the oil-recovery operations from carbonate res- "tight." deeper, central part of the basin, the Utex May 1985 New Meilco Geology TABLE 2-Significant wildcat discoveries in New Mexico rn 1984; the term formation is used in an informal sense.D&A. drv and abandoned;TA. temporarilv abandoned. Number on Fig. 1 Location (section-township.ante, county) Operator, well number, and lease 1-10N-18, Bernalillo Utex Oil No. 1 Westland Development 3-5N 4E, Valencia C. R. Robinson No. 1 Baca 26-23N-6W Sandoval Completion date (mo/yr) Culf Oil Corp. No. 1 Gallo Canyon Federal-State Deep Unit Total depth (f0 Fomation at total depth 17,500 Cretaceous Comments Deep test in Albuquerque Basin; no reported shows 2,36D Pennsylvanian Reported oil show in Pennsylvanian throu8h perforations fiom 1,830 1,850 ft 1,2,500 Paleozoic or Precambrian D&A Recovered oil from Entrada Sandstone (Jurassic) through perforations fuom 7,3437,442 ft 17-29N-27E, Colfax Austra-TexOil No. 1-Y Phelps Dodge 4,295 Morrison (Jurassic) D&A Recovered oil from Entrada Sandstone (Jurassic) through perforations from 7,3437,M2 tt 32 11N-27E, Quay YatesPetroleum Corp. No. 2 T-4 Cattle Co. 7,033 Precambrian D&A Offset to 1983 gas and oil discovery 31-11N-27E, Quay YatesPetroleum Corp. No.3T4CattleCo. 4,973 Pennsylvanian D&A Offset to 1983 gas and oil discovery D&A Oil show in core ftom Pennsylvanian 19 9N-24E, Cuadalupe Co2-in-Action No. 1 Hicks 7,275 Pennsylvanian 10-9N-29E, Quay Baker & Taylor No. l State 8,698 Precambrian 26-7N 30E, euay Gulf Oil Corp. No. 1 Caton 8,510 Pennsylvanian 3 4N-31E, DeSana Corp. No. 1 Allmand 7,160 Granite wash (Pennsylvanian?) No reported shows 14-7N-348, Pennzoil No. l Stanfield 7,525 Granite (Precambrian) No reported shows 3-13N-15E, San Miguel Midas Minerals No. 1 Midas 1,900 Pennsylvanian or Permian Swabbed oil-cut water 4,000 Abo (Permian) 26-1N-22E' De Baca Diamond Shamrock No. 1 Y Fields 26 11/84 No reported shows No reported shows Oil show in core of lower Yeso from 1,260-1,,290 ft 12-lll7f. Lincoln YdtesPetroleumCorp. No. 1 Inexco StateYP 3,990 Precambrian Tested Abo (Permian) with no reported shows 24-25 lgE, Lincoln YatesPetroleum Corp. No. 1 Chisum state YN 4,058 Precambrian Tested Abo (Permian) with no reported shows 23-3S-14E, Lincoln \ates PetroleumCorp. No. 1 Bonita Federal ZC 2,10I Precambrian No reported shows from the Morrison Formation (jurassic)and the Dakota Sandstone (Cretaceous)at the cunentlyinactive Wagon Mound field in Mora Countv (Brooksand Clark, 1978). Some of the wells were drilled as a result of Pennsylvaniangasand oil discoveriesmade Resourcesin 1982(Fig. 1, A) by Trans-Pecos and by Yates Petroleum Corp. in 1983 (Fig. 1, B) in the Tucumcari Basin. In 1984, the YatesPetroleumCorp. No. 2 T-4 Cattle Co. (20)was abandonedat a total depth of 7,033 ft in Precambrianrocks;Pennsylvanianrocks were tested without reported Detroleumrecovery.The YatesPetroleumCbrp. No. 3 T4 Cattle Co. (21) was abandoned at a total depth of 4,973ft in Pennsylvanianrocks;these rocks were tested but results were not released.The CO,-in-Action No. 1 Hicks (22) was abandoned at a total depth of 7,275lt after an oil show was encountered in a core of Pennsylvanian rocks. The DeSana Corp. No. l Allmand (25)was abandonedat7,'1,60 ft in reported granite wash. Other wells drilled previously in west Curry County have had gasshowsin the SanAndresFormation (Permian). Pitt and Scott(1981)discussedporosity zonation in the San Andres Formation of east-centralNew Mexico. Four significant tests drilled in the Tucumcari Basin were not completed or held "tight" at the end of 1984.The YatesPetroleumCorp. No. 1 T-4 Filly's Tooth (37) was drilled to a total depth of 7,700ft. The Baker and Taylor No. 1 Reilly Minerals (38)was scheduledto be drilled io 7,500 ft. The Trans-PecosResourcesNo. 1 Latigo RanchBlock D (39)was drilled "tight" to a total depth of 7,836ft and attempts were made to complete that well in Pennsylvanianrocks.The McClellanOil Corp. No. 2 Burner Fee (40)was drilled to 6,100ft and reportedly encounteredshows of oil and gasnin rocks that are probably Pennsylva- Trans-PecosResourcesinitiated a gas-enhancedoil-recoverypilot project at the TransPecosNo. 1 Latigo RanchBlockA (Fig. 1, A); 13-23S-4W 11,948 ExxonCorp. Precambrian No reported shows Dofia Ana No. 1 Mason Draw in 1982,a small gas discovery was made in Federal Unit Pennsylvanian rocks in a depth interval of 6,658-6,764ft. The object of the enhancedrecoveryproject is to recoveroil from PennOil No. 1 Westland Development (16) was tives are Pennsylvanianrocks. Black (1984a) sylvanian rocks in a depth interval of 5,165abandonedat a total depth of 17,500ft, but discussedseismicallydefined Laramide-age 6,203ft by injecting gas into the reservoir. it was held "tight" at the end of 1.984;prin- folds and thrust faults in the subsurface of Rio Petro Limited continued efforts to reciple objectives were probably Upper Cre- the EspafiolaBasin. Black (1984b)discussed cover heavy oil from Santa Rosa Sandstone taceoussandstones.This well was drilled 3 the present status of petroleum exploration (Triassic)at the Newkirk oil pool (Fig. 1, C). mi south of the Shell No. 1 West Mesa Fed- in the EspafiolaBasin. Rio Petro is operating two pilot steamflood Elsewherein northwest New Mexico, two projects, the O'Connell Ranch and the T-4 eral, which was drilled to a total depth of t9,375 ft and abandoned in L982 after en- wells were drilled in the Acoma Basin. The Ranchpilots, in an attempt to recoverthe oil. counteringgood shows of gasin Upper Cre- Joe SalazarNo. 1 State (35) was scheduled Neither pilot project has produced commertaceous sandstones.Deep wells drilled in to be drilled to 2,900 ft to test the Entrada cial quantities of oil yet. Martin (1984)reprevious years have encounteredpromising Sandstone(Jurassic),but was not completed ported on engineering aspectsof the two shows of gasin the Albuquerque Basin (Black, at the end of 7984.The Samedan Oil No. 1 pilot projects and McKallip (1984)reported 1982). Kelley (1977) and Black (1982) dis- Laguna Federal (36) was drilled to a total on the subsurface geology of the Newkirk cussed the geology of the Albuquerque Ba- depth of 5,450 ft and held "tight" at the end pool. Broadhead (1984b)discussedthe peof 1984. sin. troleum geology of the SantaRosaSandstone YatesPetroleumCorp. announcedplans to in northeastNew Mexico. Northeast New Mexico drill five wells in the Espanola Basin, which Amoco Production Co. drilled two wells SeveralDetroleum exDloration wells were (41,,42) to test the Pennsylvanian section in continues to be an important exploration target. Three wells will be drilled to depths of drilled in northeastNew Mexico in 1984.Pe- the late Paleozoic-ageTaos trough. Casey 5,000-7,000ft; principle objectivesare Cre- troleum has not been produced in this area (1980)discussedupper Paleozoicsediments taceoussandstones.Two wells will be drilled except for a brief period when marginally of the Taostrough. E to depths of 7,000-8,200ft; principle obiec- commercial amounts of gas were produced l6-10S 15E, Lincoln Rio Petro Ltd. No. 1-Y Nosker I,256 Yeso (Permian) Completed as water well Nao Mexico Ceology May 7985 TABLE 3-Significant wildcat wells that were drilling, Mexico; owdd, old well drilled deeper. Nunber on Fig. 1 Location (section-townshiprange, county) not completed , or "tight" at end of 1984 in New Operatot, well number, and lease Comments 31-14N-8, Santa Fe Chace Oil Co. No. 1 Piion Unit 35 11N-8W, Cibola Joe Salazar No. 1 State (owdd) 14-3N-12W Catron Samedan Oil No. 1 Laguna Federal Drilled 'tighf'to 5,450 ft; scheduled to be drilled to Precambrian basement 72-10N)7E, Quay Yates Petroleurn Corp. No. 1 T-4 Filly's Tooth Pennsylvanian 7,700 ft 34-9N-25E, Guadalupe Baker & Taylor No. 1 Reilly Minerals Drilled to 3,200 ft to test Cretaceous rocks Scheduled to be drilled to 2,900 ft to test Entrada Sandstone (Jurassic) test; drilled "tight" Scheduled to be drilled rocks io total depth of to 7,500 ft to test Pennsylvanian 25 10N-23E, Guadalupe Trans-Pecos Resources No. 1 Latigo Ranch Block D 31-11N-22E, Guadalupe McClellan Oil Corp. No. 2 Burner Fee Drilled "tight" to total depth of 6,100 ft; oil and gas shows reported in Pennsylvanian rocks Drilled to total depth of 7,836 ft in Pennsylvanian rocks 41 3-20N-17E, Mora Amoco Production Co. No. 1 Salmon Ranch A Pennsylvanian test; drilled "tight" to total depth of 10,200 ft 42 21.27N-'1.7E, Mora Amoco Produciion Co. No. 1 Salmon Ranch B Scheduled to be drilled to 10,200 ft to test Pennsylvanian rocks 12-29N-21E, Collax Pema Energy No. 3 Kaiser Steel Drilled "tight" to 3,900 ft; tested Dakota Sandstone (Cretaceous) 18-29N-22E, Colfax Perma Energy No. 1 Kaiser-Edson Drilled "tight" to 3,510 ft; tested Dakota Sandstone (Cretaceous) Otero Yates Petroleum Corp. No. 1 Dog Canyon Federal YF Drilled 'tight" to total depth of 9,000 ft; scheduled to be drilled to Bliss Sandstone (Cambrian-Ordovician) 10-33S-20W Hidalgo Arco Oil & Gas Corp. No. 1 Fitzpatrick Scheduled to be drilled to 15,000 {t Exploration and drilling continued in the not-yet-productive Raton Basin. The AustraTex Oil No. l-Y Phelps Dodge (19) was abandoned at a total depth of 4,295 ft without any reported shows of oil or gas. The Perma Energy No. 3 Kaiser Steel (43) was drilled "tight" to 3,900 ft in the Dakota Sandstone (Cretaceous) and had a gas show in the Dakota. The Perma Energy No. 1 Kaiser-Edson (44) was drilled "tight" to a total depth of 3,510 ft. Promising shows of gas were encountered in several wells drilled in previous years in Cretaceous rocks (Speer,'1976), but commercial production has not been established. Rose et al. (1984) discussed evidence for the presence of an undiscovered basin-centered gas accumulation in Cretaceous sandstones, and Woodward (1984) discussed the occurrence of possible fractured reservoirs in the basin. Exploration in the Raton Basin has been concentrated on the Dakota and Trinidad Sandstones (Cretaceous); deeper targets, the Entrada Sandstone (/urassic), Triassic sandstones, and the Paleozoic section, remain unevaluated. The Bravo dome carbon dioxide gas field continued to be developed and 45 we=llswere completed. The main reservoir is the Tubb sand (Permian). Carbon dioxide produced from the Bravo dome will be used for enhanced oil recovery in the Permian Basin of west Texas and southeast New Mexico; most of it will be transported by the Bravo pipeline, which was iompleted last November. May 1985 New Mexico Geology The Sheep Mountain pipeline will transport carbon dioxide to the Permian Basin from the Bravo dome field and from the Sheep Mountain field in southeast Colorado (Broadhead. 198s). Southwest New Mexico Exploratorydrilling for oil and gas continued in southwest New Mexico in 1984.The Exxon No. 1 Mason Draw FederalUnit (33) was drilled about 1 mi east of outcrops of epiclastic ePrcrastlcTertiar rertrary-age volcamc volcanic rocks rocks to a total depth of 77,948ft before it was abandoned in reported Precambrianrocks. In late 1984, Arco began drilling the Arco No. 1 Fitzpatrick (46),which will be used to test the Lower Cretaceousand Paleozoic sections in the PedregosaBasin. Although there is no current petroleum Productionin southwestNew Mexico, there is potential for future production (Greenwood et al., 1,977;Thompson, 1980, 1981). Promisingshows of both oil and gas have beenencounteredpreviouslvin severalwells (Thompson,1982).Many w'ellsd.illed in recent years were located on the assumption that southwestNew Mexico is part of the Laramide-age Cordilleranoverthiustbelt, as proposedby Corbitt and Woodward (7973), Drewes (1978), and Woodward and DuChene (1981).More recent studies indicate that thrust faulting in southwest New Mexico is of local extent only; maior Laramideagestructuralfeaturesarehigh-anglereverse faults that form basement-cored block uplifts (Brown and Clemons, 1,983;Seager,1983). Recentwork also has castdoubt on the presence of the Cordilleran overthrust belt in southeastArizona(Dickinson, 1984).The welldocumented shelf-edgereefs of the PedregosaBasin(ThompsonandJacka,1981)have notbeen drilled in the subsurfacewhere they may contain excellentpetroleum reservoirs. Effect of discoverieson oil and gas production In 1983,New Mexico was the seventhlargest producerof crude oil and the fourth largestproducer of natural gasin the United States (Energy Information Administratia , 7984, pp.20,24). Although productionof oil and gas in New Mexico has been declining in recentyears,oil production increasedin 1983 and 1984 and gas production increasedin 1984.Productionof crude oil and natural gas liquids in 1983was 75.2 million bbls, an increaseof 5.97ofrom the 71.0million bbls produced in 1982.Oil production increasedby approximately4% in 1984(New Mexico Oil Conservation Division data). Production of natural gas in 1983was 899 billion ft', a decreaseof 9.2Vofrom the 990 billion ft' produced in 1982.Gas production increasedby approximately 7Voin \984 (New Mexico Oil ConservationDivision data).In 1983,91%of the state'soil and 567oof the state'sgas was produced in the Permian Basin; 97o of the state's oil a d 44% of the state's gas was produced in the San Juan Basin. As of December31, 1983,New Mexico had reserves of 857million bbls oil and 15.7trillion ft3gas. The oil reservesinclude oil that can be recoveredby enhanced-recoverytechniques. The incieasesin oil productironin 1983and 1984can be attributed to two factors. First, new oil reservesdiscoveredand developed in the last 5 yrs increasedthe amount of oil availablefor production. Second,the market for produced oil was good, so that any oil produced could be sold. New Mexico's oil production should remain stableor increase by a few percent in 1985 becauseof good demand for oil. Although the short-term price of oil remainsin doubt, the generalconsensus is that oil prices will rise over the long term (Wash,1985,p. 17),which provides exploration incentive. Most PermianBasin operators predict that drilling activity in 1985 will be similar to what it was in 1984(Drill Bit, 1985). Continued oil discoveriesin the Permian and San Juan Basinswill encourageexploratory drilling and development and should help prevent production declinesin the future. Oil play discoveriesin the Delaware Mountain Group and the Bone Spring Formation (PermianBasin)in the last 5 yrs provide major new exploration targetsand add new oil reseryesand production that will supplantdecliningproductionfrom older oil pools. Production declineswill be slowed in the more distant future bv implementation of carbon dioxide flooding of existing fields; Foster(1980,p. 3) estimatedthat 4.6-11 million BOPD could be produced with carbon dioxide flooding techniquesby 1990. Such additionalproduction would replacewaning production from older fields, but would not reflectan increasein reserves.Significantincreasesin oil reservesmay be made by the discovery of new fields in the not-yet-productive frontier areas, such as the Tucumcari, Espafrola,Albuquerque, Acoma, and PedregosaBasins,or in the Paleozoicsection of the San ]uan Basin. The increasein gasproduction in 1984was causedby an increaseddemand for gas,rather than an increasedcapabilityto produce gas. The large declines in gas production from 1981to 7982(lI.sE") and from 7982to 1,983 (9.2%)werc causedprimarily by a decreased demand for New Mexico gas in California, the chief consumer of the state's gas. The future of gas production in New Mexico is uncertain becauseof the unknown demand for and price of gasin the future. A bad effect of decreasedgasproduction in 1982and 1983 was that exploration decreasedmarkedly; someof the produced gas reserveswere not replacedby new discoveriesand reservesdeclined accordingly.Generally,only the very best gas prospects, or those gas prospects requiredto hold leases,will be drilled in 1985 (Drill Bit, 1985). ACKNowLEDGMpNTS-Prentiss Childs of the New Mexico Oil ConservationDivision provided the well completionstatistics.Joe'Ramey and RichardStametsof the New Mexico Oil ConservationDivision provided data on the volume of oil and gas produced. David A. Donaldsonof the New Meico Bureauof Geology provided the reservestatistics.Robert A. Bieberman, Frank E. Kottlowski, and Sam Thompson, III, reviewed the manuscript. References Armstrong, A. K., and Mamet, B. 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