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Home , Delaware Basin, Yates Formation

Oiland gas discouery wells drilled in NewMexico in 1gg1 byRonald F. Broadhead, Bureau of Minesand Mineral Resources

Introduction completedin 1991,up 5% from the 1,549 up from 803completions in 1990;585 wells More wells were drilled for oil and sas wells completed in 1990but down 43% were completedas oil producersand 184 in New Mexicoin 1991than in tSgO.Oitu from the rccord 2,867 wells completed in wells were completed as gas producers obtained from the New Mexico Oil Con- 1981.In the PermianBasin, southeast New while 120wells were plugged and aban- servationDvision indicate1,b24 wells were Mexico,889 wells werecompleted in 199L, doned, resulting in a successrale of87Vo. In the , northwest New Mexico,735 wells werecompleted int997, down from 746 completionsin 1990;57 wells were completedas oil producersand 655wells were completedas gas produc- Sali Jren Li L erswhile 23wells wereplugged and aban- doned, resulting in a successrate of.97Vo. In addition, two wells were completedin the west Bravo dome carbondioxide gas unit of southern Harding County. Three explorationand developmentwells were completedin Colfax County. Totalfootage of hole drilled in 1991was 5.522million ft, up 3% from 6.313million ft drilled in 1990. The average footage drilled per well in 1991was 4,015ft,59-ft lessthan the averagewell drilled in 1990. The downturn in drilling over the past 10 years has been accompaniedby seri- ously decreasedexploratory efforts. Sev- eral major oil companiesannounced reduction or elimination of onshore ex- ploration effortsin the United States.Ex- i-.liji iuli ploratory activity has rebounded

\{J somewhat in the last three years, how- ever. The resurgencein exploration has a4 generally been led by independent op- lr,€iirA eratorsand smalleroil companies.During 1991, there was significant frontier ex- ploratory activity in Ratonand Tucumcari

Alsoin thisissue lFJtSdlilc ir-.--* NMGS1992 abstracts o. 76 MiddleJurassic Summerville I 0 50 100mi H Significantgas discovery Formation p. j I 79 O Significantoil discovery NMG 0 50 100 150km subscriptioninformation p.92 e Significantdry holewith oit show NMGS1993 papers I A Wagon Moundgas pool callfor p. 93 I B Newkirkoit pool U Significantdry holewtth gas show Summaryof NewMexico I C Santa Rosa tar ! Significantdry hole statetaxes on natural I D BlackNo. 1 Ferriilwetl Q Significantwildcat well resourceproduction p. 93 driliing,not completed,"tight", Service/News p. or planned at end of 1990 94 Upcominggeologic meetings FIGURE-l-Significant p. 94 oil and gas discoveries,frontier wildcat wells, and horizontal wells drilled Indexto Volume14 are from Broadheadand King (1e88),Cather p. 95 :)::Y::::j::iry K.:kl|ryl,-Yjj9.-q"otogic_features (1978), fl111.I_1'_"" t1Yl, Kottlowski and Stewarr (1920),Meyer (1e66),rto]'.naar (7977), Statfnotes p. 96 lnompson and Jacka(1981), and Woodwardet al. (197g). Basins, the southeasternmostSan fuan six in Lea County, and three were signif- vician reservoirs in the BHP Petroleum Basin(Cabezon area), the Gallup-Zuni sag, icant as defined in this report; some dis- No. 1 Puffer State (3) and in the BHP Pe- the SacramentoMountains, the northern coverieswere extensionsof existingpools troleum No. 1 Conoco8 Federal(4). Gas rim of the PedregosaBasin, and in So- while others discoverednew pools within was discoveredin Abo red beds () corro County (Fig. 1). five miles of existing pools. The t7 Dela- southwest of the West PecosSlope pool For purposesof this report, a signifiunt ware Mountain discoverieswere more than in the Yates Petroleum No. L Blackwater wildut discoaeryis defined asa well in which the total number of discoveriesin all other Unit (1).Exploration for gason the North- commercialamounts of oil or gas were stratigraphic units in the Delaware Basin. west shelf was limited during 1991;main discoveredin a stratigraphicunit more than Other targets for oil exploration were targets were Abo . 5 miles from the limits of previously dis- and Wolfcampian (Lower Development drilling on the Northwest covered pools with commercialproduc- Permian) .Exploratory drilling shelf was slow in 191. Nevertheless,there tion from that stratigraphic unit. A for natural gas was concentrated mostly was significant development of oil reser- significantwildcat dry hole is defined as a in Morrowan and Atokan sandstones voirs in the shallow (2,000-6,000ft) Pad- dry hole that was drilled in a not-yet-pro- (Pennsylvanian). dock, Glorieta, SanAndres, Grayburg,and ductive basin or a part of a basin and in Development drilling in the Delaware Queen reservoirs (Permian) of southern which petroleum reservoirswere evalu- Basin was predominantly for oil during Chaves County and northern Eddy and ated. The locationsof significantwildcat 1991.As with exploratory drilling, the pri- northern Lea Counties. Development of wells that were completed in 1991 are mary targetswere shallow (4,000-5,000f0 Paddockand San Andres reservoirswas shown in Fig. 1. TableL summarizesthe DelawareMountain sandstones;more than especiallystrong in the Lovington and West significant wildcat discoveries and Table L20 development oil wells were success- Lovington pools. 2 summarizesthe significantwildcat dry fully completed in the Delaware - The Rooseveltuplift and adjacentareas holes.Table 3 summarizeswells in which stones during 7991.Activity was wide- were drilled sparselyduring 1991.No sig- horizontal drilling took place in New spread with significant numbers of wells nificant wildcat discoverieswere made and Mexico during 1991. Table 4 lists other drilled in the East Catclaw Draw, Living- exploration was minimal. Exploration was significant wildcat wells that were being ston Ridge, Lost Tank, and East Loving concentrated on finding traps in Siluro- drilled, were not completed,or were held pools of Eddy County and the Hat Mesa , Pennsylvanian, and Wolfcam- "tight" at the end of 799t. and Quail Ridge pools of Lea County. pian (Lower Permian)reservoirs. Eachwell is designatedby a number in Other major targets of development drill- Significant exploration took place in parenthesesthat refers to its location in ing for oil were the moderately deep (5,000- Otero County. A significant gas discovery Fig. 1 and its description in Tables1., 2, 10,000f0 basinal Bone Spring (Permian) was made in the Lower Pennsylvanian 3. or 4. carbonates,the deep (10,000-11,000f0 Wolfcampian carbonates,and moderately deep (7,000-10,000fD middle and upper SoutheastNew Mexico Pennsylvanian (Strawn, Cisco-Canyon) Drilling activity increasedin 199Lin the carbonates.Cisco and Canyon reservoirs three geologic subdivisions of the Per- were intensivelydeveloped in the North New AAexnc@ mian Basin:the DelawareBasin, the Cen- Dagger Draw and South Dagger Draw tral Basin platform, and the Northwest pools of northwest Eddy County. Mor- GEOLOGY shelf. Eleven significant wildcat discov- rowan and Atokan clastics (Lower Penn- eries were made in the Permian Basin sylvanian) were the main targets for gas . Scienceand Service during 1991(Fig. 1, nos. 1-11; Table 1, developmentdrilling during799l, but de- tssN 0196-94aX nos. 1-11). McKamey et al. (1988)pre- velopment of gas reservoirswas slow. Volume 14, No.4, November 1992 sentedstratigraphic charts of oil- and gas- No significant wildcat discoverieswere Editor:Carol A. Hjellming producing rock units in southeastemNew made on the Central Basin platform dur- Published quarterly by Mexico, as well as geoiogic summaries of ing 1991.There was, however,limited ex- New Mexico Bureau of Mines and oil and gas pools. ploration for oil in Blinebry, San Andres, Mineral Resources a division of New Mexico lnstitute of Four significantwildcat discoverieswere and Seven Rivers (Permian) carbonates. Mining & Tahnology made in the DelawareBasin during 199L. Development drilling was mostly for oil BOARD OF REGENTS Three discoverieswere in basinal sand- in the shallow (2,000-5,000ft) SanAndres, Ex-Officio stonesof the DelawareMountain Group. Grayburg, Queen, and YatesFormations Bruce King, Gooernorof Nru Merico Oil was discoveredin the (Permian) Alan Mor8an, Superintendentof Publiclnstruction DelawareCherry and in the moderately deep Appointed Canyon sandstonesin the Yates Petro- (5,000-7,000 ft) Drinkard and Blinebry Lt. Cen. Leo Marquez, Pres.,1989-195, Albuquerque leum No. 3 Lost Tank AIS State (5) and zones of the Yeso Formation (Permian). Charles Zimmerly, Sec.lTreqs.,1991-7997, Srcorro Diane D. Denish, 1992-1997,Albuquerque the YatesPetroleum No. 1 Unocal AHU Notable gas developmentwas in isolated J. Michael Kelly, L992-t997,Roswll Federal (5). Oil was found in Delaware gas zones in the YatesFormation at the Steve Torres, 1991-1997,Albuquerque Brushy New Mexico Institute of Mining & Technology Canyon sandstonesin the Ray |almat pool and in the President.. ... LaurenceH.Lattman WestallNo. 1 Federal30 (11).In a fourth at the Eumont pool. New Mexico Bureau of Mines & Mineral Resources well, the Mercury ExplorationNo. L Con- Seven significant wildcat discoveries Directorand StateGeologist. . . Charles E. Chapin nally Federal(10), Subsciptions:lssued quarterly, February, May, August, gas was discoveredin were made on the Northwest shelf during November; subscription price $6.00/calendaryear. the Cisco-Canyon (Pennsylvanian)sec- 1991despite relatively light drilling activ- Editorial matter: Articles submitted for publication tion. ity. On the southem part of the shelf, gas should be in the editor's hands a minimum of five (5) months before date of publication (February Both oil and gas reservoirswere targets was found in the Abo (Permian)in the May, August, or November) and should be no longer of exploratory drilling in the DelawareBa- McClellan Oil No. 2 McClellan A Federal than 20 typewritten, double-spacedpages. All sin during 1991,although exploration scientific papers will be reviewed by at least two for (2). Oil was discoveredin the Canyon people in the appropriate field of study. Address oil predominated. The main targetsfor oil (Pennsylvanian)section in the Yates'Pe- inquiris to Carol A. Hjellmhg, Editor of Ntu Meria exploration were deep-basinsandstones troleum No. 1 Fort AIO (7) and in the GeoloSy,New Mexico Bureau of Mines & Mineral of the lower parts of the DelawareMoun- Resources,Socono, NM 87801-4796, YatesPeholeum No. 1 ScratchyRanch State Publishedas publicdomain, therefore reproducible without tain Group (Permian):the Brushy Canyon Unit (8). Oil was found in-San Andres permission.Source credit requested. Formation and the Cherrv Canyon For- carbonatesin the CharlesB. Gillespie,Jr. Circulqtion:7,6n mation. Eleven Delaware-Mountaindis- No. L StateQ (9). Toward the northwest, Prirrelj University of New Mexico Printing Seruices coveries were made in Eddv Countv and hydrocarbons were discovered in Ordo-

November 7992 Nat Mexico Geology TABLE l-S-ignificant wildcat discoveries in New Mexico in 1991; the term formation is used in an informal sense. BOPD, bbls oil per day; MCFPD, thousand ft3 gas per day; BCPD, bbls condensate per day; BWPD, bbls water per day; IB initial potential; IPF, initial potential flowing; IPB inltial potential pumping; owwo, old well worked over; owdd, old well drilled deeper.

Number Location Operator, Completion Total Fomation Producing (section-township- on well number, date depth at Producint interual Initial Oil B.avity Fig. 1 range, county) and lease (mo/yr) (f0 total depth formation (f0 potential (degrees API)

19-95-22E, YatesPetroleum 3/91 3,650 Precambrran Abo 3,3373,M7 IPF 771 MCFPD Chaves No. 1 BlackwaterUnit (Permian)

27-"155-30E, McClellanOil a9"l 11,100 Morrow Abo 8.1,61-8,1s7 IPF 25 MCFPD Chaves No. 2 McClellan A Federal (Pennsylvanian) (Permian) (owwol

24-85-27E, BHP Petroleum (Americas) v97 6,810 Granite Wash Montoya 6,377 6,452 IP 7910MCFPD Chaves No. 1 Puffer State ()

8-115-27E, BHP Petroleum (Americas) 4t9'l 6,625 Ellenburger Ellenburger 6,464-6,482 IPP 26 BOPD Chaves No.lConoco8Federal (Ordovician) (Ordovician) + 40 MCFPD (owwo) +9 BWPD

36-21S-31E, YatesPetroleum 3191 8,620 Bone Spring Cherry Canyon 6,783-7,084 IPP 173 BOPD Eddv No. 3 Lost Tank AIS State (Permian) (Permian) + 75 MCFPD + 108BWPD

Yates Petroleum 5t9^\ 8,s00 Bone Spring Cherry Canyon 7,069-7,749 IPP 205 BOPD No. 1 Unocal AHU Federal (Permian) (Permian) + 125MCFPD +129 BWPD

20-13S-34E, Yates Petroleum 7/9'.1 10,981 Canyon Canyon 70,828-10,847 IPP 30 BOPD Lea No. 1 Fort AIO (Pennsylvanian) (Pennsylvanian) + 5 BWPD

74-155-32E, Yates Petroleum 1U91. 13.320 Canyon 10,53610,594 IPP 22 BOPD Lea No. 1 Scratchy Ranch (Pennsylvanian) + 53 MCFPD State Unit (owdd) +63 BWPD

4-15S-33E, Charles B. Gillespie, Jr. 6191 10,350 Pennsylvanian San Andres 4,940-4,965 IPP 30 BOPD Lea No. lStateQ(owwo) (Permian) + 130BWPD

"15-225-32E 10 Mercury Exploration 3191 15,720 Morrow Cisco-Canyon 73,290-13,360 IPF 166 MCFPD Lea No. 1 Connally Federal (Pennsylvanian) (Pennsylvanian) + 0.053BCPD (owwo)

11 30-23S-34E, Ray Westall 4t97 8,500 Brushy Canyon Brushy Canyon 8,353-8,380 IPP 20 BOPD Lea No. 1 Federal 30 (Permian) (Permian) + 50 MCFPD + 20 BWPD

72 l4-25N-11W Texaco Inc. 5/91 6,034 Dakota Farmington 740 788 IPP 45 MCFPD San Juan No. 2 Navajo Allottee T () (Cretaceous) (owwo.)

IJ 15-27N-8W MaralexResources 7191 2,220 Pictured Cliffs Kirtland 1,4927,502 IPF 76 San Juan No. 10 Oxnard W N Federal (Cretaceous) (Cretaceous) MCFGPD + 2 BWPD

18-19N-29E, OXY U.S.A. No. 18 7/91 ) q)R Precambrian Tubb IP 1,800 Harding West Bravo Dome GU (Permian) MCFGPD (co,

l) 32-19N-30E, OXY U.S-A. No. 20 lt97 Precambrian Tubb IP 2,300 Harding West Bravo Dome GU (Permian) MCFCPD (cot

76 16-30N-17E, Pennzoil 4197 7,876 Vermejo Vermejo 2,538J,767 tPP 1,500 Colfax No. 161 Castle Rock 3017 (Cretaceous) (Cretaceous) BWPD

't7 32-31N-18E, Pennzoil 419"1 2,765 Vermeio Vermejo tPP't70 Colfax No. 322 Castle Rock 3118 (Cretaceous) (Cretaceous) MCFGPD + 228BWPD

l8 32-31N-18E, Pennzoil 4t9"1. 2,180 Vermejo Vermejo 7,712-1,963 IPP 290 Colfax No. 323 Castle Rock 3118 (Cretaceous) (Cretaceous) MCFGPD + 411BWPD

7-745-1.1E Cibola Energy No. 1 l0t9'l 5,028 Morrow 4,024-4,040 IP 3OO Otero Ysletano Canyon Federal (Pennsylvanian) MCFGPD

Nm Mexico Geology November 7992 TABLE 2-Significant wildcat dry holes in New Mexico in 1991;the term formation is used in an informal sense.D&A, dry and abandoned; BLW, bbls load water; perf, perforated; acid, acidized; frac, artificially fractured.

Number Location OPerator, Completion Total Fomation on (setion-town6hip- well number, date depth at Fig. 1 tange, county) and leas€ (mo/yr) (ft) depth Statu6 Comments

20 34-8N-20W, BunO&G 7t91. 874 Yeso D&A Perf and acid,628-640(Yeso), swabbed Cibola No. 1-34 Zuni Tribal (Permian) water with slight oil show. Live oil shows in dolostone at 620-645ft

21 15-275-15W, Arthur B. Ramsey r,672 Cretaceous D&A Grant No. 1 RamseyState 16

22 7-'.17N-298, OXY U.S.A. No. 21 7/97 3,097 Tubb D&A Perf, acid, and frac 2,819-2,866ft (Tubb), Harding West Bravo Dome GU (Permian) flowed 125 BLW + weak gas.

36 5-15N-5W Menion O & G 8191. 1?tq Entrada D&A Entrada test McKinley No. 1 Grey Mesa ()

33-16N-5W, Menion O & G r0t97 3,287 Entrada D&A Entrada test McKinley No. 1 Kahuna Grande (furassic)

38 21-15N-9W, Menion O & G 17191 a tq7 Entrada D&A Entrada test McKinley No. 1 Boomer Sooner (Jurassic)

TABLE 3-Wells drilled in New Mexico in 1991with a significant horizontal deviation. (The amount of horizontal drilling is indicated by the difference between the total depth and the true vertical depth.) The term formation is used in an informal sense.D&A, dry and abandoned;perf, perforated; IPB initial Potential pumping; IPF, initial potential flowing; BOPD, bbls oil per day; BWPD, bbls water per day; MCFPD, thousand ft3 gas per day.

Number Location Operator, Completion Total True on (section-tomship- well number, date depth vertical depth Obiective Fig. 1 range, count5r) and leas€ (mo/yr) (ft) (ft) Pool fo.mation Status Comments

23 22-19N-2W, Meridian Oil t2t97 6,500 wildcat Mancos D&A Sandoval No. 1 Piedra Lumbre (Cretaceous)

24 7-20N-2W, Veteran Exploration 9t91 6,208 4,508 Rio Puerco Mancos oil Perf 4,068-6,155ft (Mancos); Sandoval No. 7-3 Johnson (Mancos) (Cretaceous) IPP 564 BOPD + 1 BWPD.

25 11-20N-3W, Veteran Exploration 7191 6,309 4,646 Rio Puerco Mancos oil Producing from 3,250-4,545ft Sandoval No.1 Renegade (Mancos) (Cretaceous) open hole; IPP 11 BOPD + 23MCFGPD+ 2BWPD.

26 34-30N-8W Meridian Oil r0t91 6,069 3,653 Navajo Cig Chacra gas Perf 4,031.-6,022ft (Chacra); San Juan No. 5 Howell L (Chacra) (Cretaceous) IPF 781 MCFPD.

27 31-27N-10W Meridian Oil r0t91 8,055 5,550 Angels Peak Gallup gas Perf 5,495-7,965ft (Gallup); San Juan No. 300 Huerfano Unit (Gallup) (Cretaceous) IPF 15,240MCFPD.

section in the Cibola Energy No. 1 Ysle- TABLE 4-Significant wildcat wells that were being drilled, not completed, "tight," or planned (19). in New Mexico at the end of 1997. tano Canvon Federal This well had been spuided in the SacramentoMoun- was not completed Nunber Location Operator, tains during 1987but on (section-township- well number, until 1991. If a market can be found for Fit. 1 range, county) and lease Comments the gas and if pipeline connectionscan be 28 20-145-11E, Cibola Energy Spud 5/20/90. Drilled to total depth of 4,99"1 ft. made. it would be the first commercial Otero No. 1 Vrrden "Tight" hole. well drilled in Otero County. A second well (28) was drilled in the general area 29 35-225-20E, Frank Groce Scheduled to drill to 8,000 ft to test and remains "tight." In eastem Otero Otero No. 1 Otero 35 Federal Pennsylvanian. County, plans were made during late1991, 30 71-45-5E, Mountain States Pet. Spud 9/11/91. Scheduled to drill to 3,200 ft. to drill the Frank Groce No. 1 Otero 35 Socono No. 1 Hattie Lacy "Tight" hole. Federal (29) in order to test the Pennsyl- vanian section. 31 14-14N-8W, Merrion O & G Scheduled to drill to total depth of 2,400 ft to test McKinley No. 1 San Mateo Entrada (furassic). Northwest New Mexico 32 25-14N-8W, Merrion O & G Scheduled to drill to total depth of 1,100 ft to test in McKinley No. 1 San Lucas Hospah (Cretaceous). In L991, 735 wells were completed northwest New Mexico, down l%a ftom 33 12-15N-sW Merrion O & G Scheduled to drill to total depth of 3,720 ft to test the 746 completions in 1990. Virtually McKinley No. 1 Caflada Calladita Entrada (Jurassic). all drilling was in the San fuan Basin, dominated by development of coal-bed 34 15-15N-2W Menion O & C Scheduled to drill to total depth of 3,000 ft to test Sandoval No. 1 Canada Bonita Entrada (Jurassic). methane in the Fruitland Formation (Cre- taceous). 35 27-19N-5W High Plains Petroleum Scheduled to drill to 2,050 ft to Point Lookout Exploratory drilling resulted in two sig- McKinley No. 1 Mammoth Fed. (Cretaceous). nificant discoveriesin 191. Gaswas found

November 1992 New Mexico Geology in the Farmington (Creta- ing activity concentrated in the Bisti and No. 1 Femill(Fig. 1, letterD) hasproduced ceous)in the TexacoNo. 2 Navajo Allottee South Bisti pools. Oil reservoirsin the Da- 719 bbls oil from the Niobrara and T (12).Gas was alsofound in the Kirtland kota Sandstone of Rio Arriba County were lower Mancos Shale(Cretaceous) since the Shale (Cretaceous) in the Maralex Re- also developed. well was drilled in 1985 sourcesNo. 10 Oxnard W N Federal(13). Five wells were drilled in the San Juan In the RatonBasin, Pennzoil completed By the end of 1991,Merrion Oil and Gas Basin during 1991with a significant hor- three significantwells (15-18)that tested had stakedlocations for four wildcat wells izontal deviation (Table3). Threewells (23- and evaluated coal-bedmethane re- (37-34)in the southeasternmostSan Juan 25) were drilled to test the Mancos Shale sourcesin the VermeioFormation (Creta- Basin,south of establishedproduction; the (Cretaceous)in the southeastSan Juan Ba- ceous).Pennzoil has drilled approimately principal exploratory objective is the En- sin. Two of those wells (24, 25) were suc- 30 exploratory and developmental wells hada Sandstone(Jurassic). These wells will cessfully completed in the Rio Puerco in the New Mexico part of the basin since be drilled by Merrion as part of a program Mancos oil pool. Two other wells with 1989.These wells were drilled as part of to evaluate more than 500,000 acres of hor2ontal deviation (26, 27) were drilled a pilot program to evaluatecoal-bed leasesheld by SantaFe Energyin SanJuan, in the central part of the basin. The Me- methane potential in the basin. Despite McKinley, Sandoval,and Cibola Counties ridian Oil No. 5 HowelIL (26)established successin establishingcommercial gas re- (Oil and Gasfournal, 1990a).Three wild- gas production in the Chacra interval serves, the coal-bed methane wells will cat Entrada tests drilled in the area by (Cretaceous)and the Meridian Oil No. 300 be temporarilyabandoned because of low Merrion in 1991(36-38) were abandoned Huerfano Unit (27) established gas pro- gasprices. Drilling will be resumedwhen without establishing production. High duction in Gallup sands(Cretaceous). naturalgas prices increase and further de- Plains Petroleum scheduled a Cretaceous Elsewhere in northwest New Mexico, velopment is warranted economically. wildcat (35) in the same generalarea as one exploratory well, which had been More than 300 additional wells may be the Merrion wells. spudded in 1.990,was completed in the drilled eventually, and existing wells will Other exploratory efforts concentrated Gallup-Zuni sag. The Gallup-Zuni sag is be re-entered. on defining new oil reservesin 1991..Nine a synclinal feature on the west side of the Evaluationof carbondioxide resources wells have extended known limits of pro- Zuni uplift; it connectsthe SanJuan Basin in the west Bravo dome unit of Harding duction from the Gallup sandstone(Cre- with the BacaBasin. The Burr Oil and Gas County continued. In early7991,, two wells taceous)in San |uan County. Exploration No. 1-34 Zuni Tribal (20) was drilled on drilled by OXY U.S.A. (14,15) established for gas was minimal. a southwest-plunginganticlinal nose lo- production from the Tubbsandstone (Per- Most development drilling in the San cated one mile northeast of the Atarque mian), the principal reservoir in the Bravo fuan Basin during 1.991was for shallow monocline. Total depth was reachedat 874 dome field. A third well (22) was aban- (approximately 2,ffi0 ft) coal-bedmethane ft and shows of live oil were reported in doned after failing to establish commer- in the Fruitland Formation (Cretaceous). dolostone at 620-645 ft in the Yeso For- cial levels of production. Further Approximately 550 wells were completed mation (Permian). The well was aban- developmentof carbondioxide resources as gas producers in the Fruitland during doned without establishingproduction. It may ensue. Most of the 1991.Kelso et al. (1988)estimated that the was the third dry hole drilled in the past produced at Bravo dome is transported total gas contained within Fruitland coal three years on the Zuni Reservationto test through pipelines to the Permian Basin beds in the San |uan Basin is 50 trillion large, previously undrilled surface struc- where it is used in enhancedoil recovery. ff (TCF); most of that gas is within the tures. No wells were drilled or spuddedin the New Mexico part of the basin, but the Tucumcari Basin during 1991.However, most prolific coal beds appear to be con- large-scaleleasing continued during the centrated mainly in the Colorado part of year. During the April 1991state lease sale, the basin. Similarly, Ayers and Ambrose NortheastNew Mexico l,abrador Oil Co. successfullybid on 33,352 (1990)estimated a total volume of Fruit- There was relatively little petroleum ex- acresof StateTrust Land in centralGua- land gas between 43 and 49 TCF. It is not ploration in northeastNew Mexico dur- dalupe Counfy. During the September1991 known what percentageof the gas is re- ing 1D1. After additional drilling, Pennzoil sale,Tenison Oil Co. successfullybid on coverable under current economic con- abandonedits coal-bedmethane play in 1,040acres of StateTrust Land in northern ditions with currently employed the Raton Basin.Drilling of carbondiox- Quay County. And in the October sale, technology, but this reservoir represents ide reservoirstook placein the west Bravo Labrador Oil Co. successfullybid on an a major addition to the state'sgas sup- dome area.Exploratory leasing continued additional 16,222actes of StateTrust Land plies. In March L997, gasproduced from in the TucumcariBasin. in central and northeast Guadalupe the Fruitland was 38% of the gas pro- Petroleumhas not beenproduced com- County. Federaland private lands were duced from the San juan Basin and 22Vo merciallyin northeastNew Mexicoexcept also leasedin the basin. Drilling should of total gas produced from New Mexico from relatively small and isolatedopera- follow the extensiveleasing that occurred (Whitehead,1991). Whitehead (1991) tions. In the 1970s,marginally commer- in 1991and 1990(Broadhead, 191). Penn- summarized coal-bed methane in the cial amounts of gas were produced from sylvanianand Permianstrata are primary Fruitland. the Morrison Formation (furassic) and targets in the Tucumcari Basin (Broad- Development drilling for gas in reser- DakotaSandstone (Cretaceous) at the cur- head and King, 1988). voirs other than the Fruitland was slug- rently inactiveWagon Mound pool in Mora gish in 1991 and was confined almost County (Fig. 1, letter A). Sincethe 1980s, entirely to SanJuan and Rio Arriba Coun- the Newkirk pool (Fig. 1, letterB) haspro- ties. Gaswells were completedin Dakota, duced 595bbls healy oil from sandstones Gallup, Tocito, Mesaverde, and Pictured in the SantaRosa Formation ()with SouthwestNew Mexico Cliffs sandstones(Cretaceous). the aid of a pilot steamfloodoperation. In Two petroleum exploration wells (21, Development drilling for oil was sub- the 1930s,approximately 153,000 tons of 30)were drilled in southwestNew Mexico ordinate to development drilling for gas tar sands were quarried from the Santa during 1991,one in Hidalgo County and in 1991.Only 57 oil wells were completed Rosa Formation near the town of Santa one in SocorroCounty. Elsewhere,a large in the SanJuan Basinduring 199L,a 24Vo Rosain GuadalupeCounty (Gormanand lease play emerged in Catron County. decreasefrom the 75wells completed dur- Robeck,1946;Fig. 1, letter C); the tar sands Along the northem margin of the Ped- ing 1990.Gallup sandstonereservoirs in were used for road-surfacingmaterial in regosaBasin of Grant County,the Artlrur San juan and Rio Arriba Counties were New Mexico and neighboring states.In B. RamseyNo. 1 RamseyState 16 (21) was the major development targets with drill- southern Santa Fe Countv. the Black Oil

NewMexico Geology November 1992 'i 120.g d o- >€ 25 1oo 3D B" 2S 20 an .9X ;= o-' 15 An *aaz

10 40 b- o E c 202 FIGURE 2-Average monthly crude oil price and number of active rotary drill- 0 ing rigs in New Mexico during 1989, E$ 1990,and 1991.Data from New Mexico iFFs t EEfl g igssi EE$EFs€iPsstE Taxation and Revenue Deot. and Oil 5;agg'1989 "agg 1990 1991 and Gas Journal (1989, lgci}b, 7991).

140 3.00 120E 5b o ,^^ 6 >o 'uu 3 o o; 6.9 z= 2.00 an .9'j X :€ ;= sq 60 €E o$ 1.00 HE 40 b- \ numberof rotaryrigs E 202 FIGURE 3-Average monthly natural gas price and number of active rotary drilling rigs in New Mexico during 1989, *tE=eB:s,EEasF 1990,and 191. Data from New Mexico +trgtiq;<3o2o+ OY $EF9€isFsiEELO ;eggii'4"8i8 Taxation and Revenue Dept. and Oil 1989 1990 1991 and Gas Journal (1989, 1990b,1991).

drilled in the northern part of the Little largest producer of natural gas in the ing reservoirs that may be economically Hatchet Mountains. The well was spud- United States (Energy Information Ad- recoverable through implementation ol ded in the Ringbone Formation (Creta- ministration, 1991).Production of crude existing enhanced-recoverytechnology ceous)and '1.,672 was drilled to a total depth of oil and leasecondensate in New Medco (EnergyInformation Administration, 1991); ft in Cretaceousrocks beforebeing in 1991 was approximately 70.4 million 99Voof. those reservesare in the Permian abandonedwithout reported shows. Al-- bbls, an increaseof 3.4Vofrom the 68.1 Basin. As of December 31, 1990, New though production has not been estab- million bbls produced during 1990(New Mexico had proved natural 8as reserves lished from the PedregosaBasin, the Mexico Oil ConservationDivision data). of 18.5TCF (EnergyInformation Admin- Paleozoicand Lower Cretaceoussections Productionof natural gasin 1991was ap- istration, 1991);the San Juan Basin con- are promising targets(Thompson, 1981). prodmately 1,019billion fP (BCF),an in- tains 81% of the state'sgas reservesand In easternSocorro Countv, the Moun- creaseof 5.5%from the 965BCF produced the Permian Basin contains 19% of the tain StatesPetroleum No. i Hattie Lacy in 1990.Int99L,937o of the state'soil and state'sgas reserves. (30)was drilled on a largenorth-plunging 46Voof the state'sgas were produced from The estimated value of oil produced in anticline that forms the easternboundary the PermianBasin and adjoining areasof New Mexico during 1991 was approxi- of the fornada del Muerto. The well was southeastNew Mexico;7% of the state's mately $1.4billion (New MexicoOil Con- spudded in the YesoFormation (Permian) oil and 54Voof the state'sgas were pro- servation Division data). The estimated and reached an unreported total depth duced from the SanJuan Basin of north- value of produced gas was also approxi- during September1991. The well is pres- west New Mexico. mately $1.4 billion. The state derives a ently considered"tight." As of December31, 1990,New Mexico large amount of revenue from taxes and No drilling occurred elsewherein New had proved crude oil reservesof 687 mil- royaltieslevied on oil and gasproduction Mexicoduring 1991.However, in the Baca lion bbls (Energy Information Adminis- (Table 5). In 1990, New Mexico received Basinof west-centralCatron Countv, Du- tration, 1991);the PermianBasin contains $299 million from oil and gas taxes and gan Production Co. successfully6id on 92Vaof the state'sproved oil reservesand from oil and gas royalties on State Trust 3,843acres of StateTrust Land dirring the the San fuan Basin contains 8Va of. the Lands. In addition, New Meico received October 1991 state lease sale. Wengerd state'sproved oil reserves.Additionally, $103million as its share of revenues from (1959),Foster (1964), Woodward and Grant New Mexico had reserves of 75 million leases on federal lands within the state; (1986),and Broadheadand Black (1989) bbls of lease condensate (Energy Infor- this value includesbonuses, royalties, and have discussedthe petroleum potential of mation Administration, 1991);TtVo of Lhe rentals derived from leasesand produc- this area. state'scondensate reserves are in the San tion of oil, gas, and coal. fuan Basin and 29Voof the state's con- The increase in oil production during Production and economics densatereserves are in the Permian Basin. 1991resulted mostly from an increasein In 1990, New Metco was the seventh Furthermore, there are an additional 256 oil prices. The averagesales price of New laqgestproducer of crrrdeoil and the fourth million bbls of crude oil reservesin exist- Mexico crude oil increased suddenly to

November 1992 Nao Mexico Geology and TABLE S-State oil and gas revenues collected increase in the near future. One of the Meyer, R. F., 1966,Geology of Pennsylvanian Wolfcamoian rocks in southeastNew Mexico: New in 1991. Data from New Mexico Taxation and consequencesof low prices is that drilling Mexico Bureau of Mines and Mineral Resources, Revenue Dept., Oil and Gas Accounting for natural gas will continue at a dimin- Memoir 17,123 PP. Division. ished rate; exploration for and develop- Molenaar, C. M., 1977,Stratigraphy and depositional ment of gas resourceswill be minimal. history of Upper Cretaceousrocks of the San Juan area,with a note on economicresources: New Amount collected pipe- Basin The construction of several new Mexico GeologicalSociety, Guidebook to 28th Field in 1991 Tax or royalty lines (Broadhead, L997;Whitehead, 1991) Conference, pp. 159-1.66. will provide New Mexico producers greater Oil and Gas Journal, 1989, Baker Hughes rig count: Severance tax fi 9r,889,512 flenbility when attempting to market their Oil and Gas Journal, v. 87, no.2, p 75; no 7, p School tax $ 76,8s1,038 50;no. 11,p.77; no.15, p.91';no. 19,p 64;no. Ad valorem tax $ 24,673,35r gasand will open marketsin the midwest. 24, p. 59 no. 28, p. 110;no. 33, p. 58; no. 37, p. Conservation tax $ 4,390,108 However, the new pipelines will have no 73; no. 41, p. 99; no. M, p. 1'15;no. 50, p. 93. Royalty on state trust land $70r,776,752 effect on the nationwide gas surplus and Oil and Gas Journal, 1990a,Wildcat campaign nears in NW New Mexico: Oil and GasJournal, v. 88, no. TOTAL $298,980,767 prices will remain relatively low. One bright spot has emerged for New Mexico z. D. //. Oil a^ndGas Journal,7990b, Baker Hughes rig count: producers, however. If the North Amer- Oil and Gas foumal, v. 88, no. 2, p. 86; no. 7, p. ican Free Trade Agreement is signed, it is 60; no. 11, p. 55; no. 15, p. 74; no. 20, p. 75; no no. 33, p. 66;no. 37, p. more than during the onset of probable that markets for New Mexico gas 24, p. 57; no. 28, p. 113; $30.00/bbl no. 46,p. 136;no. 50, p. 58. will develop in northern Mexico. 98; no. 41,p. 138; the Persian Gulf War at the end of 1990 Oil and Gas fournal, 1991,Baker Hughes rig count: (Fig. 2). After successful military action AcxNowleoct'mNns-Prentiss Childs of Oil and GasJoumal, v. 89, no.2, p. 83; no. 6, p. by the allied coalition, prices subse- the New Mexico Oil Conservation Divi- 73; no. 10, p. 105;no. 1'4,p.94; no. 19, p.74; no. no. p.75; quently decreased and stabilized at ap- sion provided the well completion statis- 23,p.57; no. 27,p. 57;no.32, p. 99; 36, no 49, 76 tics. Roy and Frank Kottlowski no. 41, p. 106;no.45, P.74; P proximately $20.00/bbl and were sustained fohnson Oil and Gas Journal, 1992,More hard times lie ahead at values somewhat greater than before reviewed the manuscript. Lynne Hemen- for U.S. gas industry: Oil and Gas Journal, v. 90, the war. The spike in oil prices at the end way typed the manuscriptand JanThomas no.7, pp.21.24. rocks in of t990 resulted in increased drilling ac- drafted the illustrations. Thompson, S., III, 1981, Petroleum source explbration wells drilled to Paleozoicor tivity (Fig. 2) which led to increased oil units, Hidalgo and Grant counties, New Mexico: production from new wells. More impor- New Mexico Energy Institute, Report EMD-2-66- tant, however, was that the higher prices 3305, l2O pp.; New Mexico Bureau of Mines and References pp. provided incentive to increase or re-es- Mineral Resources,Open-file Rept. 153, 126 Ayers, W. B., Jr., and Ambrose, W A., 1990, Geologic Thompson, S., III, and Jacka,A. D., 1981',Pennsyl- tablish production from etsting wells, controls of the occunence of coalbed methane, vanian stratigraphy, pehography, and petroleum particularly those with marginal produc- Fruitland Formation, San Juan Basin; ln Ayers, W. geology of the Big Hatchet Peak section, Hidalgo tion. This is a strong indication that pro- B., et al., Geologic evaluation of critical production Countv, New Meico: New Mexico Bureauof Mines parameters for coalbed methane resources, part 1: 175, 125pp. duction in New Mexico will increase as a and Mineral Resources,Circular San Juan Basin: Gas Research Institute, Rept. GRI- Wengerd, S. A.,1959, Regionalgeology as related to result of favorable economic changes. A 9010014.7,pp.9-72. the petroleum potential of the Lucero region, west- sustained increase in oil prices will result Broadhead, R. F., 191, Oil and gas discovery wells : New Mexico Geological So- in an increase in exploration for new re- drilled in New Mexico in 1990: New Mexico Geol- ciety, Guidebmk to 10th Field Conference,pp. 121- serves, which should help increase pro- ogy, v. 13, no. 4, pp.75-81 ru. Broadhead, R. F., and Black, B. A.,1989, Petroleum Whitehead, N. H., III, 1991, Coal-bed methane in duction or at least stem the rate of decline. exoloration wells drilled in west-central New Mex- New Mexico: New Mexico Geology, v. 13, no. 4, Gradual decreases in future reserves and ico: New Mexico Geological Society, Guidebook to pp. 82-88. production will probably be arrested only tl0th Field Conference, pp. 287-296. Woodward, L. A., Callender, f. F., Seager, W R., if the number of operating rigs is in- Broadhead, R. F., and King, W E., 1988, Petroleum Chapin, C. E., Gries, f. C., Shaffer, W. L., and gmlogy of Pemsylvanim and Lower Pemian straLa, Zilinski, R. E., 1978, Tectonic map of the creased substantially or if a major discov- Tucumcari Basin, east-central New Mexico: New rift region in New Mexico, Chihuahua, and ; ery is made. Mexico Bureau of Mines and Mineral Resources, inHawley,I . W. (compiler), Guidebmk to Rio Grande The increase in gas production in 1991 Bulletin 119, 75 pp. rift in New Mexico and Colorado: New Mexico Bu- was caused primarily by an increased Cather, S. M., and Johnson, B. D., 1984, Eocene tec- reau of Mines and Mineral Resources, Circular 153, tonics and depositional setting of west-central New sheet 2. demand for gas, although productive Mexico and eastern Arizona: New Mexico Bureau Woodward, L. A., and Grant, P R., 1986, Central- capacity rose as a result of extensive de- of Mines and Mineral Resources. Circular 192, 33 western New Mexico-an exploration frontier for velopment of coal-bed methane reservoirs PP. oil and gas: New Mexico Geological Society, Guide- in the San juan Basin. Primary markets Energy Information Adninistration, 1997, U.S. crude Lrook to 37th Field Conference, pp.307-i1'4. ! oil, natural gas, and natural gas liquids resewes, for New Mexico gas are h Califomia. New 1990 annual report: U.S. Department of Energy, Mexico gas faces stiff competition in Cal- Energy Information Adminishation, 1990 Annual ifornia from fuel oil, Wyoming gas, and Report, DOE/EIA-O216(%), 109 pp. imported subsidized Canadian gas. Com- Foster, R. W.,7964, Stratigraphy and petroleum pos- sibilities of Catron County, New Mexico: New Mex- petition from fuel oil will decrease if the ico Bureau of Mhes and Mineral Resouces, Bulletin price of cmde oil stays relatively high; also, 8s, 55 pp. natural gas may replace fuel oil in many Gorman,J. M., and Robeck,R. C.,1946,Geology and County, markets because it is a more environmen- asphalt deposits of north

Nm Metiu GeologY November 1992