In February of 1997 S. A. Holditch & Associates, Inc. did an evaluation of the Bob West Prospect. In the executive summary:
The three wells are Hinojosa #1, Guerra #1, and the Luera #1.
All three wells were completed in the same geologic equivalent sand, the L20, L21.
In each of these wells there are 3 to 5 additional sands with potential for gas production that has not been completed.
The following table list the primary zones and the important reservoir estimated for the Hinojosa well.
Zone .... Net Pay... Porosity...Water Sat. ...... Perm- ....... Initial
................Feet.........(%)............(%)..........Thickness ..... Permeability
....................................................................(md-ft)............(MD)
L-5 .......... 35 ...... 10.4 ........... 34 ...... ......... 2.4 ...... ...... 0.069
L-12 ...... 100 ...... 11.4 ........... 37 ...... ......... 6.9 ...... ...... 0.069
L-13 ........ 40 ........ 9.2 ........... 31 ...... ......... 2.7 ...... ...... 0.068
L-14 ........ 20 ........ 9.1 ........... 33 ...... ......... 2.7 ...... ...... 0.135
L-15 ........ 50 ........ 9.0 ........... 33 ...... ......... 3.4 ...... ...... 0.068
L-21 ........ 35 ........ 7.7 ........... 32 ...... ......... 1.1 ...... ...... 0.030
Gas production forecasts were generated assuming that the same sands observed in the Hinojosa well would be encounter in the South Bob West Prospect. Each zone should capable of draining 80 acres when propped fractured to 750 feet. The following chart summaries the results from the analysis.
Zone .... Cum. Gross... Cum Undis. Net ... Cum Undis. Revenues
...............Production.........Revenues.................. Revenues
.................(MMscf)...........($1000s).....................($1000s)
L-5 ............ 1,844 ...............2,442 ........................2,229
L-12 .......... 5,983 ...............7,995 ........................6,751
L-13 .......... 1,959 ...............2,564 ........................2,291
L-14 ............. 947 ...............1,234 ........................1,159
L-15 .......... 2,402 ...............3,153 ........................2,775
L-21 .......... 1,230 ...............1,575 ........................1,395
Totals ...... 14,365 ............ 18,963 ........... ...... .. 16,598
Note the Economic parameters assumed for the above analysis are as follows:
Gar Price - $2.00 constant; Operating Costs - $1500/month; Royality - 25%
Taxes - 7.5%; Discount Factor - 10%
The estimate for the initial zone completion cost to be Appr. $1.1M
The cost for each subsequent zones estimated $450K
Hinojosa has the appearance and indicated performance of a tight gas reservoir.
Also the cutoff valve for shaliness was 50%, water saturation was 50% and the porosity was 6%.
The following table is the results of the Promat (tm) analysis:
.................................................... Guerra #1 .....Luera #1
Permeability - thickness, md ft ........ 0.2 .............. 4.6
Permeability - md .......................... 0.005 ........... 0.035
Net Pay, ft ........................................ 37 ............... 131
Reservoir Pressure, psi .................. 11.470 ......... 10,900
Fracture Length, ft ........................... 450 ............. ------
Skin Factor ...................................... --- ............... -3.7
Drainage area, acres ......................... 77 ............... 12
OGIP, Mmscf ................................ 2,170 .......... 2,700
The reports states it is doubtful that the skin factors are accurate.
Not the report states that it is not surprising that the Luera well would have the highest permeability -thickness since this well produced over 2Bcf naturally. The Guerra well produced appr. 800 Mmscf, but hydraulically fractured. The Hinojosa well, which produced the least of the three, was not hydraulically fractured successfully.
In generating these forecasts, they assumed a 750 ft propped fracture could be created in each of the sands and the drainage area for each zone would be 80 acres.
Results from production forecasts Bob West South Prospect
Zone .... Cumulative ....... Producing ............... Minimum Flow
...............Production.............Years .................. Pressure
.................(MMscf)........... (Time) ....................(PSI)
L-5 ............ 1,847 ............... 6.7 ........................ 1750
L-12 .......... 5,985 ............. 17.2 ........................ 2050
L-13 .......... 1,985 ............... 8.7 ........................ 2050
L-14 ............. 947 ............... 4.5 ........................ 2100
L-15 .......... 2,403 ............. 10.1 ........................ 2150
L-21 .......... 1,231 ............... 7.5 ........................ 2300
If the same quality of sands are penetrated by the Bob West South Prospect, the potential production from the well could be on the order of 14 Bcf.
Hope this helps
Happy Trading
GaBard |
