in 1987 in NewMexico wellsdrilled Oilandgasdiscovery NM87801 Resources, Socorro, Bureau andMineral ol Mines F. Broadhead, NewMexico by Bonald Introduction Fewer wells were drilled for oil and gas in New Mexico in 7987than in 1986.Data obtained from the New Mexico Oil Conservation Division indicate 938 wells were completedinl987, down24% from the 1.,243 wells completed in 1986and down 67% from the record 2,867 wells completed in 1981.In the Permian Basin, southeast New Mexico, 740wells were completedinl9S7, down from 838completions in 1.985;431wells were completed as oil producers, 170wells were completed as gas producers,and 139wells were plugged and abandoned,resulting in a success rate of. 8lVo. In the San fuan Basin, northwest New Mexico, 198wells were completed in 1987, down from 405 completions in 1986;79 wells were oil producers,100wells were gas producers, and 19 wells were plugged and abandoned, resulting in a suc. In addition, eight wells were cessrate of %)7o completed in the Bravo dome carbon dioxide gas field of southern Union and eastern Harding Counties. The downturn in drilling was accompaniedby decreasedexploratory efforts. Despite this, however, significant exploratory drilling continued in the Baca, Acoma, Raton, Tucumcari, and EstanciaBasins and on the SierraGrandeuplift (Fig. 1). Total footage of hole drilled in 1987 was 4,767,394ft, down from 6,756,266ft drilled in 1986. The average depth of wells dri-tled in 7987was 5,083 ft, 352 ft less than the average depth of wells drilled in 1986. For purposes of this report, a significant wildcntdiscooeryis defined as a well in which commercial amounts of oil or gas were discovered in a stratigraphic unit more than 5 miles from the limits of previously discovered pools with commercialproduction from that stratigraphic unit. A significantwildcat dry hole is defined as a dry hole that was drilled in a not-yet-productive basin or a part of a basin and in which petroleum reservoirs were evaluated. The locations of significant wildcat wells that were drilled in 1.987are shown in Figure 1. Table 1 summarizes the significant wildcat discoveries, and Table 2 summarizesthe significantwildcat dry holes. Table 3 lists other significant wildcat wells that were being drilled, were not completed, or were held "tighf' at the end of 1987. Each well is designated by a number in parenthesesthat refers to its location in Fig. L and its descriptionin Tables1.,2, or 3. Southeast New Mexico Drilling activity remained slow in 1987in the three geologic subdivisions of the Permian Basin: the Delaware Basin, the Central Basin platform, and the Northwest shelf. Drilling activity was also light on the Roosevelt dome. Despite the slow drilling activity, however, the Permian Basin and Roosevelt dome yielded several significant oil and gas August 1988 New MexicoGeology leum Corp. No. 4 WilliamsonBC (3).Oil was found in basinal Permian sandstonesin four wells: the Frank Boyce No. 1 State BB (4), the Indrex Inc. No. 1 Four Forks Federal (5), the Conoco No. 11 Bell Lake Unit (7), and the Enron Oil & GasNo. 1 Owen MesaFederal Com. 26 (40). Becauseof the slack gas market, exploration in the Delaware Basin was concentratedon finding new oil reserves and not on finding new gas reserves.Major targets for oil exploration were basinal sandstones of the Bone Spring Formation and Delaware Mountain Group (Permian), including the Brushy Canyon and Cherry Canyon sandstones.There was also exploration discoveries in t987 (Fig. 1; Table 1). Kinney (1967,p. 26-27)presentedshatigraphiccharts of oil- and gas-producingrock units in southeastNew Mexico. The Delaware Basin, the deep-marinepart of the Permian Basin, yielded eight significant discoveriesin 1987.Gaswas discovered in Atokan (Pennsylvanian) clastics in two wells, the Petrus Oil No. 1 Henshaw Federal (1) and the Sun Exploration & Production No. 1 NM FederalCom. (6). Oil was found in the Strawn Series (Pennsvlvanian)in the Yates Petroleum Corp. No.- 1 Compromise FederalCom. AEf (2). Gas was found in upper Pennsylvanian strata in the YatesPetro- ;* 'e63 r us ffrlt'% 2 8 F,d & {:iil{r x $&*tc,*1 Sxs!n -.---L. ff** ,. ,.- 2 - i-. 1 0i ;1**rj'dii " ** *1 $fferra 1 ,*:'.;.,t. i ^ " ".--.: A 7-,') l-i*r*ing ii ff; $ Kspaalo4a 8p*in ,i38,3e !-..,.-,.., I f ._, ...,,.._- , ,.- - -i li i:ii* nr:;r o35 S*tarieia1 Sas&n 1 j '2t-g z,t ; i*= f*** i \. g$d( a *{a$!n --""" i l*}< P*derrsa{ *p*ift 3r,{-.rf:u L,ijij{:l!-i ;3 l/. & i *r,rl} Fedregosa O &asin I I O i_ # we && €ffi k* 100 mi 50 O 100 I A wason Mound gas poor f B N e w k i r ko i l p o o l I C S a n t a R o s at a r s a n d s HE e l a w a r e 4000u|'::,7 S i g n i fi c a n t g a s d i s c o v e r Y H o S i g n i fi c a n t o i l d i s c o v e r y It 50 Iri*1' 1 5 0k m Q O S i g n i f i c a n td r y h o l e w i t h o i l and gas show S i g n i f i c a n td r y h o l e w i t h o u t reported show S i g n i f i c a n tw i l d c a t w e l l d r i l l i n g ,n o t c o m p l e t e d ," t i g h t " , o r p l a n n e da t e n d of 1987 FIGURE 1-significant oil and gas discoveriesand wildcat wells drilled in New Mexico in 1987.Major Xe!9f geologicfeatuies are taken from Broadheadand King (in press),Catherand Johnson,(19841, (Uza;l fottlowski and Stewart (1970),Meyer (1966),Molenaar (7977\, Thompson and |acka (1981), Woodward et al. (1978). for oil in Wolfcamp (Lower Permian) and TABLE l-significant wildcat discoveries in New Mexico in 7987; the term formation is used in an informal sense.BOPD, bbls oil per day; BWPD, bbls water per day; BCPD, bbls condensateper day; Cisco, Canyon, and Strawn (Upper to Middle Pennsylvanian) carbonate reservoirs. MCFGPD, thousand ff gas pei day; IPCAOD initial potential, calculated absolute open flow; IPF, There was limited exploration for gas in the initial potential, flowing; IPP. initial potential, pumping; owwo, old well worked over. deep (10,000-14,000ft) Atokan and Morrolfi.tion wan (Lower Pennsvlvanian) clastic units. (dioF PEducinS Oil gavity Tohl Fomrtion Nmb€r OFr.br, Compldion (degre Initial int€dal Preducint at w.ll nmbcr, dcpth bmship&b Developmentdriiling in the DelawareBa(ft) (ft) potential (motr) API) foffition bhl d€pth Fi8. 1 re8e, @6ty) lee ild sin was almost exclusively for oil in 1987. Atoka 10,374-70,390 IPCAOF 1,514 11.,n5 Atoka 14-165-308, Petrus Oil 8/87 Major targets for devefopment drilling were MCFGPD (Pennsylvanian) (Pennsylvanian) Eddy No. 1 oil reservoirs in the shallow (4,000-6,000ft) Henshaw Federal Delaware Mountain Group (Permian) and moderatelydeep (6,000-10,000 ft) BoneSpring 57.'l 8,720-8,725 IPF 6 BOPD + 9,800 Mississippian Strawn Yates 2 {-l8S-278, Formation (Permian). Few development gas 795MCFCPD (PennsYlvanian) Petroleum Eddy wells were drilled in the Delaware Basin in Corp. No. 1 Compromise L987; mostly, gas development was in resFed. Com ervoirs of the deep Atokan and Morrowan AEJ (Lower Pennsylvanian) clastic units. upper 10,029-10,051IPF 110 11,640 Monow 7-205-29E, Yates No significant wildcat discoveries were MCFCPD (Pennsylvanian) Pennsylvanian Petroleum Eddy made on the Central Basin platform in 1987. Corp. No. 4 Williamson Exploration was concentrated on deep SiluBC rian and Devonian targets under the plattowwo, form and along the western border areas of Delaware 4,665-5,866 IPP 162BOPD+ t6-l9s-3r,E, Frank Boyce 6,000 Delaware the platform. Severalexploratory wells were (Permian) 123MCFGPD+ (Pemian) Eddy No. l State drilled for this pu{pose and a few were suc180 BWPD BB cessful.Development drilling was mostly for Bone Spring 4,345-4,419 IPF 55 BOPD + 44 15225-258, lndrex lnc, 10,860 Bameft oil in the shallow (2,000-5,000ft) Yates,Seven 123MCFGPD + (Mississippian) (Permian) Eddy No. 1 Four Rivers, Queen, Grayburg, and San Andres 59 BWPD Forks Federal Formations (Permian). Sirgo-Collier Inc. Atoka 12,955-L2,970 IPF 8,7U 24-185-33E, Sun 13.7,10Chester continued development of a waterflood unit MCFCPD + (Mississippian) (Pennsylvanian) Exploration Lea in the Dollarhide Queen oil pool of southeast 696 BCPD & Production Lea County. No. 1 NM Federal Com. One significantwildcat discoverywas made on the Northwest shelf in 1987.Oil was dis31-23S-34E, Conoco No. 8,900 Bone Spring Cherry Canyon 6,805-6,810 IPP 263 BOPD+ (Pemian) (Permian) Lea 11 Bell take 230 MCFGPD+ covered in the Devonian in the Bell-Fov & Unit 182 BWPD Middlebrook No. 1 Culp Ranch Unit (41). Limited exploration continued for oil in Silurian 27-75-37E, H. L. Brown 9,089 granite 8,U5 8,892 IPF 202 BOPD + 45 (Precambrian) Devonian 544 MCFGPD Roorevelt Jr. No. 1 Wolfcamp (Lower Permian), Pennsylvanian, Federal Com. and Silurian-Devonianreservoirs. 27 Development of oil and gas pools on the Pennsylvanian 6,759 6,769 TPCAOF1,522 7,206 Pr@mbrian 27-25-29E, Manhall Pipe Northwest shelf continued at a fast pace in MCFGPD Rooevelt & Supply 1987.Main tarBetswere oil reservoirs in the No. 1 Mccee IPCAOF 2,513 7,0ffi-7,M2 Montoya shallow (less than 6,000 ft) Queen, Gray(Ordovician) MCFCPD burg, and SanAndres Formations (Permian). Conoco and Phillips conducted extensiveinCallup 3,882-3,9t5 IPP 12 BOPD + 28-20N 2W Hixon 4,6,10Gallup (Cretaceous) (Cretacous) 2.4 MCFCPD Sandoval Development fill drilling programs to develop waterfloods No. 1 in the Grayburg and SanAndres Formations Hugh Foster (Permian) at the Maljamar oil pool of north2,078J,202 tPF 35.9 Chacra t1 6-21N-4W, Cary 2,370 Chasa ern Lea County. Phillips and Mobil con(Cretac@us) MCFGPD (Cretaceous) Sandoval Williams ducted similar drilling programs to develop No. 13 waterfloods in the Grayburg and SanAndres Ceja Pelon 6 at the Vacuum oil pool of northern Lea 1,632-1,42 IPF 6 MCFCPD 6,306 Dakota Fruitland 2-24N-9W Dugan County. Chevron developed a waterflood of + 5 BWPD (Cretac@us) (Cretaceous) SanJuan Production the Grayburg and SanAndres in the EuniceCory. No. 3 Blancowash Monument oil pool of central Lea County. The only gas pool developed extensively 1,7M 1,7-17 IPF 61 MCFGPD 1,850 Pictured Cliffs Fruitland 5-24N-9W, Dugan (Cretaceous) in 1987was the West PecosSlope Abo pool (Cretaceous) San luan Production Corp. No. 1 of west-central Chaves County. McKay Oil Phillips Coryoration completed more than 80 wells Pictured Cliffs (Cretaceous) in that pool. Average depth was approximately 3,400 ft. McKay was able to increase 1,642-1,658 tPF 88 MCFGPD 14 5,500 Callup Fruitland 5-24N 10W, Dugan (Cretaceous) (Cretaceous) + 1.5 BWPD San Juan Production gas yields from Abo wells with the aid of a Corp. No. 2 carefully designed, computer-assisted,artiSears ficial fracturing program (Mickey, 1987).The Rebuck increased gasyields, as well as development of a market for Abo gas, allowed develop7,610-7,620 IPF too small to 2,345 Pictured Cliffs Fruitland t0-27N 8W, R&C Drilling measure (Cretac@us) (Cretaceous) San Juan No. 30 ment of the West PecosSlope pool while deGraham A velopment of other New Mexico gas pools IPP 156 3,6784,n9 Fruitland Rob€rt L8,700 Monison 4-29N-3W languished. (Cretac@us) MCFGPD + (Jurassic) Rio Arriba BaylessNo. 1 The Roosevelt dome and adiacent areas 6 BWPD licarilla 451 were drilled sparsely in 1987. Despite the (continued on page 56) slow pace of drilling, however, two signifiNao MexicoGeology August 1988 TABLE 1 (continued) Other targets of gas drilling were coal beds and sands in the Fruitland Formation. Lmtion Maior targets of development drilling for (*ctioG Oil gavity Folfrtion PreducinB Nuber Operalor, Compldion Totd oil in the San Juan Basin were the Gallup (detE6 lnitiat lomship well nuber, at PreducinS intenal dah depth (ft) (mo/yd (f0 potential API) bbl depth Fig. 1 ntr8€. couty) md leas fomation Sandstoneand Niobrara Shale(Cretaceous). Several development wells were completed 17 18-30N-2W Robert L. Pictured Cliffs 3,723-3,728 IPF 7V 8,703 Dakota in fwo or more of the following Cretaceous (Cretaceous) (Cretaceous) Rio Aniba BaylessNo. 1 MCFGPD units: Gallup Sandstone,Dakota Sandstone, Jicarilla519 Callup 7,2ffi-7,7M tPF 1,013 and the fuanaLopez, Greenhom Limestone, (Cretaceous) MCFGPD and Graneros Shale Members of the lower part of the Mancos Shale. The thickness of 11-30N 3W, Robert L. 4,052 Pictured Cliffs Fruitland 3,6941,726 tPF 382 (Cretaceous) Rio Arriba BaylessNo. 1 (Cretaceous) MCFCPD each completion zone is typically 300-500ft. Jicarilla456 Stoneet al. (1983)and Molenaar(L977)sumPicturedCliffs 3,726-j,729 (Cretaceous) marized the stratigraphy of Cretaceousrocks in the San |uan Basin. 36-26N-298, Sofia 3/87 Clorieta 1,652 1,7U tPF 544 3,764 Precambrian (Pemian) Two exploratory wells were drilled in the Union Exploration MCFCPD, COZ No.1 Roxana presently nonproductive Acoma Basin. The Yeso(Pernian) 1,880-1,892 State Austra-Tex No. 1 Exxon Mineral Fee(23)was 2f-249 29F, Enron Oil & 7187 Bone Spring 12,860 Atoka 7,952-7,962 IPF 75 BOPD + abandoned at a total depth of 7,000 ft with Eddy Gas No. 1 (Pennsylvanian) (Permian) 544 MCFCPD + no reported shows. The Austra-Tex No. 1Owen Mesa 92 BWPD FederalCom. 26 7 Rio Puerco Federal (24) was abandoned at a total depth of 6,324 ft in reported arkosic 4l 11-12S-30E, Bell-Foy & 11187 10,280 Devonian Devonian 10,25110,280 IPF 426 BOPD Chaves Middlebrook sediments of Permian or Pennsylvanianage. No. 1 Culp The Espaftola Basin is a frontier basin in Ranch Unit northwest New Mexico. Two marginally commercial oil discoveries were made in 1985 in Upper Cretaceousstrata at the southern end of the basin (Broadhead,1986).Three confirmation wells were drilled by BruceBlack in 1986 but did not encounter commercial quantities of petroleum. Three additional cant wildcat discoverieswere made. Oil was nificant discoveriesin the SanJuanBasin(Fig. confirmation wells (34, 38, 39) are scheduled to be drilled in 1988. Black (1984a,b) disfound off the south flank of the dome in res- 1; Table 1) in spite of the depresseddrilling cussedaspectsof petroleum exploration and ervoirs of Silurian-Devonian age in the H. activity. Exploration was concentratedon the L. Brown Jr. No. 1 Federal Com. 27 (8). eastern side of the basin. Oil was discovered sfiucture in the EspafrolaBasin. Elsewhere in northwest New Mexico, the Northwest of the dome, gas was found in in Gallup sands (Cretaceous)in the Hixon Pennsylvanian reservoirs in the Marshall Pipe DevelopmentNo. 1 Hugh Foster(10).In the New Mexico & Arizona Land Company No. & Supply No. 1 McGee (9); that discovery Gary Williams No. 13 CejaPelon6 (11)mar- 5 PentecoTrinity (25) was drilled on the Lucero uplift west of the Albuquerque Basin extended the area of Pennsylvanianproduc- ginal quantities of gaswere discoveredin the tion northward toward the Tucumcari Basin. Chacra interval(Cretaceous).Significant dis- and subsequentlywas abandoned. Three inIn that same well, a gas completion was also coveries of gas were made in both the Pic- tervals in the Pennsylvanianwere perforated attained in a Montoya (Ordovician) reservoir tured Cliffs and Gallup sands (Cretaceous) and acidized without yielding production or that developsthe Tile Montoya gaspool; the in the Robert L. BaylessNo. 1 Jicarilla519 shows. A location was staked near the end Tule Montoya pool was discovered in 1985 (17). In six wells (12, L3, 14, 15, 16, 18) sig- of 1987to drill the Merrion Oil & Gas No. 1 Galestina Canyon (36) in the southern part and extended the area of Ordovician pro- nificant low-volume gas discoveries were duction approximately 25 miles northward made in the Fruitland Formation (Creta- of the Gallup sag of western Cibola County; from previously known limits. Development ceous)at depthsof 1,500to 3,800ft. Fruitland that well is scheduled to be drilled to a total depth of 3,000 ft. activities in Roosevelt County were slow in production in two of those wells (13, L8)was 1987 and were generally restricted to Penn- commingled with gas production from the sylvanian oi-[pools. upper part of the Pictured Cliffs Sandstone Northeast New Mexico Elsewhere in southeast New Mexico, Ci- (Cretaceous).In those wells, Fruitland and exploration continued in the Petroleum bola Energy staked a location in the Sacra- Pictured Cliffs reservoirsmav be in dynamic mento Mountains for their No. 1 Ysletano hydraulic contactwith eachother. Fruitland frontier areas of northeast New Mexico in 1987. Wildcat wells were drilled in the EsCanyon Federal(37).That well is scheduled gas reservoirs have been ignored for many to reach a total depth of 3,800ft in Devonian years because of low production volumes; tancia, Tucumcari, and Raton Basins.Explostrata. exploration and development have been ration for carbon dioxide concentratedon the concentrated in deeper, more prolific reser- Bravo dome. Petroleum has not been provoirs in the Upper Cretaceous. However, duced commercially in northeast New MexNorthwest New Mexico lower costs involved with drilling the shal- ico except during a brief period in the 1970's In 1987, 198 wells were completed in lower Fruitland reservoirs (mostlv less than when marginally commercialamounts of gas northwest New Mexico, down from 405com- 2,000ft) compensatepartially for the low vol- were produced from the Morrison Formation pletions in 1986and 863completions in 1985. umes of gas production. Choateet al. (1984) (Jurassic) and the Dakota Sandstone (Cretaceous) at the currently inactive Wagon Almost all of the wells were drilled in the estimated that the total gas contained within Mound field in Mora County (Fig. 1, letter Fruitland coal beds more than 2 ft thick in San Juan Basin. The diminished rate of drillthe San juan Basin is 31 trillion fF (TCF); A). In the 1980's,the Newkirk pool(Fig. 1, ing in 1986 and 1987 has been caused by depressedgaspricesand a depressedmarket most of that gas is within the New Mexico letter B) has produced 488bbls heavy oil from the Santa RosaSandstone(Triassic)with the for gas, which is the primary petroleum part of the basin. Most development drilling for gas in the aid of a pilot steamfloodproject.In the 1930's, product of the SanJuanBasin.Depressedoil prices have also taken a toll on drilling ac- San fuan Basin was in sandstone reservoirs approtmately 153,000tons of tar sandswere in the Pictured Cliffs Sandstone,Mesaverde mined from the Santa Rosa Sandstonenear tivity in the SanJuan Basin. Exploratory drilling resulted in nine sig- Group, and Dakota Sandstone(Cretaceous). the town of SantaRosain Guadalupe County August 1988 Nau Merico Geology (Gormanand Robeck,1946;Fig.1, letter C). In the EstanciaBasin of TorranceCounty, the Benz, Lyle & Curtis No. L Benz (26)was spudded in 1984and was finally abandoned in 1987after being drilled to a total depth of 796ft. Oil-cut and gas-cutsalt water was reportedly swabbed from perforations in the YesoFormation(Permian).The BruceWilson No. 1X fudd (32)was spudded in L987and was drilled to a total depth of 2,830ft. Casing was set to total depth, and several intervals were perforated in the Pennsylvanian section; no shows were reported. Exploratory activity iontinued in the Tucumcari Basin in 1987.One significant well, the Knightsbridge Petroleum No. L Triple Crown (27), was drilled in the central part of the basin. That well reacheda total depth of 7,6M ft in Pennsylvanian strata and has been temporarily abandoned.On the northern flank of the Tucumcari Basin, plans were made to re-enter the Tom L. Ingram No. 1 Gihon (31) and to drill to a projected total depth of 5,500ft to test the Pennsylvanian and Wolfcampiansections. In the New Mexicopart of the RatonBasin, the Export Petroleum No. 1 Moore Ranch State(28)was drilled through the Cretaceous sectionand reacheda total depth of 2,936ft in the Chinle Formation (Triassic);no shows were reported. The Pennzoil No. 33 Van Breamer(29) was drilled to a total depth of 2,085ft to test Cretaceouscoalsfor gas and was "tight" at the end of 1987.Although the New Mexico part of the Raton Basin is not yet productive of oil and gas, gas has been produced from small fields in the Colorado part of the basin. Severalexploratory wells drilled in past yearsin the New Mexico part have encounteredpromising shows of gas and might be marginally commercialif gas pricesand gasdemandwere more favorable. Speer (1976)and Woodward(7987)discussed the petroleum geology of the Raton Basin. Leonard Mineralsmade plans to drill their No. 1 TaosTrough Unit (30)in the Sangrede Cristo Mountains of Taos County. The well will spud in the Pennsylvanianiection and is scheduledto be drilled to a total depth of 6,000ft. The No. 1 TaosTrough Unit will be the first petroleum exploration well drilled in Taos County. Development of the Bravo dome carbon dioxide gas field continued in7987 and eight wells were drilled. The main reservoirat Bravo dome is the Tubb sand (Permian),although minor production comesfrom the SantaRosa Sandstone (Triassic)and shows of carbon dioxide have been encounteredin the Glorieta Sandstone,upper ClearforkMember of the YesoFormation,and the Abo Formation (Permian). Most carbon dioxide produced from the Bravo dome field is used for enhanced oil recovery in the west Texaspart of the Permian Basin. Eventually, as production from oil fields under waterflood in the New Mexico part of the Permian Basin wanes, carbon dioxide will be used for enhancedoil recoveryin the New Mexico part of the Permian Basin. A relatively minor amount of carbondioxideproducedirom the 'TABLE 2-Significant wildcat dry holes drilled in New Mexico in 1987;the term formation is used in the informal sense.D&A, dry and abandoned;TA, temporarily abandoned. Number Location (s€ction-town6hipon Fig. f range, county) Operator, wellnumber, and lese Compl€tion date (month,/year) Total depth (ft) Fomation at total depth Mancos (Cretaceous) Comments D&A No reported shows. Upper Cretacmus test. D&A "Titht" hole. No reported shows. Extensively cored and 24 DST's run- 21-3N-9W, Catron Black Oil No. 6 SantaFe Pacific Railroad 2-4S-13W, Catron Shell Westem Exploration & Production No. 1 SWEPIet al. State 9/87 7,m 21-3S-15W Catron Shellwestern Exploration & Production No, 1 Mangus Mountains Federal 11t87 7,7ffi "Tight" hole. No reported shows. 23-12N-4W Cibola Austra-Tex No. 1 Euon Mineral Fee 9t87 7,m "Tight'' hote. No reported shows. 7-12N-2W, Sandoval Austra-Tex No. 1-7 Rio Puerco Federr. 10t87 6,324 Cranite 25 35-6N-3W, Valencia New Mexico & Arizona Land Company No. 5 PentecoTrinity u87 1,650 Precambrian 26 18-5N-98, Torrance Benz, Lyle & Curtis No. I Ben, 6-9N-3rE, Quay Knightsbridge Petroleum No. 1 Triple Crown 5187 ExportPetroleum No. 1 Moore Ranch State 6187 l6-29N-248, Colfax wash (Pennsylvanian) D&A No reported shows. Perforated 145V747 4 tt, 748l1490 ft,1524 1528 ft, acidized, no reported shows. Yeso (Permian) D&A Spudded in 4/84. Swabbed slight oikut and gaHut salt water from perforations in Yeso (Permian). To b€ completed as water well. 7,$4 Pennsylvanian TA No reported shows. 2,9 Chinle (Triassic) D&A No reported shows. Was scheduled to drill to 4,000 ft in Preambrian. 796 TABLE 3-Significant wildcat wells that were being drilled, not completed, "tight", or planned in New Mexico at the end of 1987. owdd, old well drilled deeper. Number on Fig. 1 Location (section--towns hiprange, county) 29 30-30N-198, Colfax Comments Pennzoil No. 33 Van Breamer Reached total depth of 2,085 tt. "Tighl' Leonard Minerals No. 1 TaosTrough Unit Location staked. Scheduled to be drilled to test Pennsylvanian section. 31-13N-30E, San Miguel Tom L. Ingram No. 1 Gihon (owdd) Well drilled to 2579 ft in Yeso Formation (Permian) and abandoned in 1986. Scheduled to reenter and drill to 5,500 ft in Precambrian. 6 3N-7E, Tonance BruceWilson No. 1X Judd Drilled to total depth of 2,830 ft. Perforated 1,6281,6U, I,876 1,882, 2,246-2,252, and 2,UO-2,444 tt and swabbed water. John Aday No. 2 D'Spain Spudded in 1983. Drilled Shut in. 7 13N-98, SantaFe Black Oil No. 2 Leigh Scheduled to drill to 4,200 ft to test Upper Cretaceous sfftion. 27-15 13W Catron Shell Western Exploration & Production No. 1 SWEPIet al- Aspen Federai Scheduled to drill to 9,000 ft to Praambrian. 27-8N 18w, Cibola Menion Oil & Gas No. 1 GalestinaCanyon Scheduled to drill to 3,000 ft to Precambrian. 7 145-118, Otero Cibola Energy No. 1 YsletanoCanyon Federal Location staked. Scheduled to be drilled in Devonian strata. 1-13N 88, SantaFe Black Oil No. 1 Leigh Location staked. Scheduled to drill to 3,500 ft in Upper Cretaceous strata. 12 13N 88, SantaFe Black Oil No. 4 Ferrill Location staked. Scheduled to drilt to 4,000 ft in Upper Cretaceous strata. 35 24N-148, Taos 12-6N-6E, Torrance 39 Operator, well number, and lease hole. to 6,000 ft to total depth of 1,900 ft. Nm Mexim Geology August 1988 to 3,800 ft 57 Bravo dome field is converted into drv ice and bottled, liquid forms. The Sofia Exploration No. 1 Roxana State (19) was drilled on the Sierra Grande uplift in Union County and a new carbon diofude gas field was discovered by that well. Initial polgltlll was 544 thousand ft' gas per day (MCFGPD) from reservoirs in the Glorieti Sandstoneand Yeso Formation (Permian). Developmentof this new field is scheduled to commencein 1988.Broadhead(1987)discussed the occurrence of carbon dioxide in Union and Harding Counties. Southwest New Mexico Four significant exploration wells were drilled in the BacaBasin of southwest New Mexico in 1987.The Black Oil No. 6 SantaFe Pacific Railroad (20) was drilled with air to a total depth of 680 ft in the Mancos Shale (Cretaceous)and was abandoned. That well had been scheduledoriginally to be drilled to 1,000ft to test the Dakota Sandstone(Cretaceous),but it was abandonedaftera waterbearing zone was encountered in the Mancos. The Blackwell is located4 ft west of the Transocean No. 1 Turner-Santa Fe Pacific Railroad, which was abandoned in1977 after being drilled to a total depth of 5,220tt in Precambrian rocks. Shell Oil Company drilled three exploratory wells in 7987.The Shell Western Exploration & ProductionNo. 1 SWEPIet al. State (21; Fig. 2) was drilled to a total depth of 7,000 ft and was "tight" at the end of tggZ. The Shell Western Exploration & Production No. 1 Mangus Mountains Federal(22)drilled to a total depth of 7,700 ft and was "tight" at the end o17987. Both thesewells had been scheduled to reach total depth in Precambrian basement. The Shell Western Exploration & Production No. 1 SWEPIet al. Aspen Federal(35) was "tight" and not completed at the end of 1987.The well was scheduled to drill to a total depth of 9,000ft in Precambrian rocks. The Shell drilling and exploratory program constitutes the first comprehensiveprogram to evaluateand test the petroleum potential of central Catron County. Primary targets in Catron County are Upper Cretaceous sandstones, the San Andres Formation, GlorietaSandstone,and sandstones and carbonatesin the Yeso Formation (Permian),and Pennsylvaniansandstonesand limestones. No exploration wells were drilled elsewhere in southwest New Mexico in L987. However, the Paleozoic and Lower Cretaceous sections of the Pedregosa Basin are promising targets(Thompson,1980,1981). Effect of discoveries on oil and gas production In 1985,New Metco was the seventhlargest producerof crude oil and the fourth lar[est producerof natural gasin the United States (Energy Information Administration, 1982). Productionof crude oil and leasecondensate in New Mexico in 7987 was approximately 71.5million bbls, a decreaseof 5.SVo from th-e August 1988 NewMexicoGeology nues. The rise in oil production created an oversupply of oil and causedprices to plummet. A gradual reduction of world petroleum stocks and partially successfulattempts by OPEC nations to reinstate production ceilings causeda subsequentgradual price increase.Becauseof the decreasein oil prices, many marginal and stripper wells were shut in or plugged, and their production may never be regained unless oil prices increase sufficiently to justify the expense of re-opening such wells. Stripper wells are defined as wells that produce less than 10 bbls oil per day. Approxim4tely 20Voof oil production in New Mexico is from stripper wells. Declining oil prices have also resulted in a decreasein drilling activity, which is reflected in the rig count for the state (Fig. 3). Oil reservesfound and developedduring the "boom" drilling yearsof 1980-82reachedpeak developmentin 1983and 1984.The drilling slump of 1983-85and the more serious del creasein drilling in 1986and 1987led to fewer exploratory and development wells being drilled than in the boom years.As a conseFIGURE2-Shell No. I SWEPIet al. Stare(FiB 1, quence of decreaseddrilling, fewer discovno. 21;Table2, no. 21)drilling in the BacaBasin, eries were made and existing reserveswere not developed as quickly as in the past. The luly 1987. inevitableresult was decreasedproduction. Oil discoveries made in the last five to six years in the Delaware Mountain Group 75.7 million bbls produced in 1985 (New (Delaware Basin), Bone Spring Formation Mexico Oil Conservation Division data). Pro- (DelawareBasin),and the Gallupand Dakota duction of natural gas in 1987was approxiSandstones(Sanfuan Basin)provide major mately 808 billion ft' (BCF), an increase of new explorationtargetsand haveaddednew 16Vofrom the 693BCFproduced in 1986(New oil reservesand production that have supMexico Oil ConservationDivision data). In planted decliningproductionand reservesof 1986,89E"of the state'soil and 56% of t]ne older pools. Continued oil discoveriesin the state's gas were produced from the Permian Permian and SanJuan Basinswill encourage Basin; l-1,7oof the state's oil and MVo of the exploratorydrilling and development.Howstate'sgaswere producedfrom the Sanfuan ever, the number of active rotary rigs in New Basin.As of December37,7986,New Mexico Mexico is tied to the price of oil (Fig. 3). had proved oil reserves of 644 million bbls, Declines in future reserves and production a decreaseof 44 million bbls from December will probably be halted only if oil prices rise 31, 1985 (Energy Information Administra- enough to substantiallyincreasethe number tion, 1987);the Permian Basin contains 92% of active rigs. Until then, exploratory disof the state'soil reservesand the San luan coveries will not keep pace with production Basincontains 87oof the state'soil reserves. and reserveswill decline;unlessa major field As of December31, 1985,New Mexico had is discovered by one of the few rigs drilling natural gas reserves of 12.5 trillion ft', an currently. increaseof 1.1 trillion ft3from December31, The increasein gasproductionin 1987was 1985 (Energy Information Administration, causedby an increaseddemand for gas,rather 1987);the Permian Basin contains 24% of the than an increasedcapabilityto produce gas. state's gas reserves and the San Juan Basin Primary markets for New Mexico gas are in contains 76Voof.the state'sgas reserves. California; apparently those markets imThe decreasein oil production in '1.987 can proved substantially in 1987.Nevertheless, be attributed to a decline in the price of oil New Mexico gas will continue to face stiff during 1986and eatly 1987.The price of west competition in California from fuel oil, hyTexas intermediate crude oil with a gravity droelectric power, and imported Canadian of 40'API fell557o from a high of $27.251bb1 gas. Consumption of natural gasis expected in January 1986to a low of $I2.25lbbIin July to increaseslightly during 1988(Beck,1988). 1985(Fig. 3). The price of west Texasinter- The long-term demand for gas is also exmediate crude oil subsequently rose to 920/ pected to increase (American Gas Associabbl in August 1987 and declined to $18/bbl tion, 1984). in December1987. Most of the gasproducedin 1985and 1987 The sharp fall in oil prices at the beginning was not replaced by new discoveries.Alof 1986was due to a sudden rise in oil pro- though calculated gas reservesincreasedby duction by several major producing coun- 1,102BCFfrom 1985to 1986,only 3 BCFwere t r i e s ( n o t a b l v G r e a t B r i t a i n a n d L a t i n representedby new field discoveriesand only American and-Middle Easterncountries)in 154 BCF were representedby extensionsof an effort to increaseincome from oil reve- existing fields (Energy Information Admin- 30 E 92s 100 d 6 o 3 o z izo 80E o g3 'a o\ E I rs 6rlo :G P = o o o '; @ G to 6 F 40E -\-"-\ o q) ; Es -'/ o '. \/ -) r!;agS --- f '/ \number '\ - -J f of rotary rits -n E a 6+? e cE- o * =6> o 2 8,4 r- ! z oi S ; 19 8 6 lI99-{E 3-Monthly b;1987a,b\. q) 202E =Yioo^ -)d,,XvZ av' o 19 8 7 crude oil prices and number of active rotary rigs in New Mexico during 1986and 7987.Data from Oil and Gas Journal (1986a, istration, 7987);the remaining calculatedincreaseof 945 BCF was causedby revision of reseryecalculationsin known fields.Because 1986 production was 577 BCF, real gas reservesactually decreasedby 520BCF during 1.986.Generally, only the very best gas prospects, or those gasprospectsrequired to hold leases, were drilled in 1987.The larger, existing gas pools in the San /uan Basin continued to be developedin 1982 but at a slower pace than in previous years. The West Pecos Slope Abo gas pool of northwest Chaves County was the only major gas pool developed aggressivelyduring 1987. AcKNowlEDcvrevrs-Prentiss Childs of the New Mexico Oil Conservation Division provided the well completion statistics. Robert Bieberman, Frank Kottlowski, Roy Johnson, and Sam Thompson III reviewed the manuscript. Lynne McNeil typed the manuscript and RebeccaTitus drafted the figures. References American GasAssociation, 1984,The gas energy demand outlook-1984-2000: American Gas Association, Arlington, Virginia, 90 pp. Beck, R. J., 1988,Production slide and demand growth will moderate during the coming year: Oil and Gas Journal, v. 85, no. 4, pp. 41,-43,46,48-53. Black, B. A., 1984a,Hydrocarbon potential of the Espaflola Basin-a progressreport: New Mexico Geological Society, Guidebook to 35th field conference,pp.22340. Black, B. A., 19Ub, Structural anomalies in the Espaflola Basin: New Mexico Geological Society, Guidebook to 35th field conference, pp.59-62. Broadhead, R. F., 1986, Oil and gas discovery wells drilled in New Mexico in 1985: New Mexico Geology, v 8, no. 2, pp.36-40. Broadhead, R. F., 1987, Carbon dioxide in Union and Harding Counties: New Mexico Geological Society, Guidebook to 38th field conference,pp.339-349. Broadhead, R. F., and King, W. 8., in press, Petroleum geology of Pennsylvanian and Lower Pemian strata, Tucumcari Basin, east-centralNew Mexico: New Mexico Bureau of Mines and Mineral Resources,Bulletin 119. Cather,S. M., and fohnson,B.D.,1984,Eocenetectonics and depositional setting of west-central New Mexico and easternArizona: New Mexico Bureauof Mines and Mineral Resources,Circular 192, 33 pp. Choate, R., Lent, 1., and Rightmire, C. T., 7984,Upper Cretaceousgeology,coal,and the potential for methane recovery from coal beds in the San Juan Basin-Colorado and New Mexico: American Associationof Petroleum Geologists,Studiesin Geology SeriesNo. 17, pp. 1.85-222. Energy Information Administration, 1987,U.S. crude oil, natural gas, and natural gas liquids reserues,1986annual report: U.S. Department of Energy, Energy Information Administration, 1986annual report, DOBEIA0216(86),103pp. Gorman, I- M., and Robeck, R. C., 1946, Geology and asphalt deposits of north-central Guadalupe County, New Mexico: U.S. GeologicalSuruey, Oil and Gas Investigations, Preliminary Map 44. Kelley, V C., 1978,Geology of Espaiola Basin,New Mexico: New Mexico Bureau of Mines and Mneral Resources,Geologic Map 48, scale 1:125,000. Kinney, E. E. (ed.), 1967,The oil and gas fields of southeastem New Mexico: Roswell Geological Socieay,7967 Symposium Supplement, 195 pp. Kottlowski, F. E., and Stewart, W. J., 7970, The WolfcampianJoyita uplift in centralNew Mexico:New Mexico Bureau of Mines and Mineral Resources,Memoir 23, pt. I, pp. 1-31. Meyer, R. F., 796F,Geology of Pennsylvanianand Wolfcampian rocks in southeastNew Mexico: New Mexico Bureau of Mines and Mineral Resources.Memoir 17, 723 pp. Mickey, V, 1987, High-tech approach to Abo success: Southwest Oil World, v. 35, no. 3, pp. 1,3-1,4. Molenaar, C. M.,79n, Stratigraphyand depositionalhistory of Upper Cretaceousrocks of the San Juan Basin area, with a note on economicresources:New Mexico GeologicalSociety,Guidebook to 28th field conference, pp. L59-1.66. Oil and GasJournal, 1986a,SelectedU.S. and world crude prices: Oil and Gas Journal, v. M, no. 2, p. 85; no. 5, '1.46; p. 134;no. 10, p.79; no. 15, p. no. 19, p. 90; no. 23, p. 67; no. 28, p. 120; no. 32, p. 115;no. 36, p. 133; no. 41, p. 97; no. 45, p. 724;no. 49, p. 68. Oil and Gas Journal, 1986b,Hughes rig count: Oil and Gas fournal, v. 84, no. 2, p. 85; no. 5, p. 734; no. 10, p. 79; no. 75, p. 1.46;no. 19, p. %); no. 23, p. 67; no. 28, p. l2O; no. 32, p. 115;no. 36, p. 133;no. 47,p.9l no. 45, p. 124;no. 49, p. 68. Oil and GasJournal, 1987a,SelectedU.S. and world crude prices: Oil and Gas Journal, v. 85, no.2, p. 83; no. 5, p. il; no. 70, p. 53; no. 15, p. 75; no. 19, p. 78; no. 23, p.77; no.28, p.99; no. 32, p. 85;no. 37, p. 83; no. 41, p . 1 0 3 ;n o . 4 5 ,p . 9 8 ; n o . 4 9 , p . 9 2 . Oil and Gas Journal, 1987b,Hughes rig count: Oil and Gasfournal, v 85, no. 2, p. 83; no. 5, p. 54; no. 10, p. 53; no. 15, p. 75; no. 19, p. 78; no. 23, p. 77; no. 28, p. 99; no. 32, p. 85; no. 37, p. 83; no. 41, p. 103;no. 45, p . 9 8 ;n o . 4 9 ,p . 9 2 . Speer, W. R.,1975, Oil and gas exploration in the Raton Basin: New Mexico Geological Society, Guidebook to 27th field conference,pp. 217-226. Stone, W J., Lyford, F. P, Freroel, P F., Mizell, N. H., and Padgett, E. T., 1983,Hydrogeology and water resources of San Juan Basin, New Mexico: New Mexico Bureau of Mines and Mineral Resources,Hydrologic Report 6, 70 pp. Thompson, S., II, 1980,PedregosaBasin's main exploration target is Pennsylvanian dolostone: Oil and Gas Journal, v. 78, no. 42, pp. 202, 207, 210, 275. Thompson, S., II, 1981, Petroleum source rocks in exploration wells drilled to Paleozoicor Mesozoic units, Hidalgo and Grant Counties, New Mexico: New Mexico Energy Institute, Report EMD-2-55-3306, 120 pp. Thompson, S., III, and Jacka,A. D., 7981,Pennsylvanian stratigraphy, petrography, and petroleum geology of the Big Hatchet Peak section, Hidalgo County, New Mexico: New Mexico Bureau of Mines and Mineral Resources,Circular176,125pp. Woodward, L. A,.,7987,Oil and gaspotential of the Raton Basin, New Mexico: New Mexico Geological Society, Guidebook to 38th field conference,pp. 331J38. Woodward, L. A., Callender,J. F., Seager,W. R., Chapin, C. E., Gries, J. C., Shaffer,W. L., and Zilinski, R. E., 1978, Tectonic map of Rio Grande rift region in New Mexico, Chihuahua, and Texas;inHawley, J. W (compiler), Guidebook to Rio Grande rift in New Mexico and Colorado: New Mexico Bureau of Mines and Mineral Resources,Circular 163, sheet 2. n Nat Mexico Geology August 1988