Project Overview: The Greater Joe Mill Project
Summary:
The Greater Joe Mill Project is located within the highly-prolific Permian Basin and on trend with the emerging Wolfberry trend currently being developed by industry. Current production from this region stands at over 153,000 barrels of oil per day, ranking it among the top oil producing regions in the U.S. The Company believes this project area has tremendous oil potential and drilling efforts by industry participants has accelerated in recent years as a result of new completion methods and advancement in completion technologies.
Prospect:
The Company has acquired a 25% net working interest in approximately 4,700 mineral acres within the Greater Joe Mill Project area, with an option on an additional 5,700 gross mineral acres in the play. The Company has identified a minimum of 35 low-risk drilling locations on 40-acre spacing within The Joe Mill Project Area targeting the established Joe Mill sands, which are prolific producers in the region. Additionally, the Company believes tremendous upside exists in the testing and development of both the Spraberry and deeper Wolfberry objectives, which are expected to significantly increase potential drilling locations with the project area. The Company and partners have identified up to eight (8) prospective pay horizons within the defined project area. The project area is currently being developed on 40-acre spacing but potential exits for development on 20-acres spacing and eventual secondary recovery potential.
Geology:
The play area is located within the Midland Basin (part of the prolific Permian Basin of West Texas) and is comprised of turbidite deposits. These thin interbedded source and reservoir rocks combined with limey sand contribute to the plays low porosity (~ 10%) and permeability, providing the ideal setting for the application of modern frac technologies to reservoirs that have historically not been developed by industry. There are four major reservoir systems feeding into the Spraberry/Wolfberry trend area and relatively consistent geology exits over a large geographic area. The play is productive between 6,000 feet to over 10,000 feet and the primary producing intervals are the Clearfork, Spraberry/Dean, Wolfcamp, and Strawn. Typical wells in the play produce ~70% light sweet crude (42 degree API), 20% NGLs and 10% natural gas (1,400–1,500 BTU).