The company’s Permian basin asset currently consists of three oil fields. The Chaveroo and Milnesand fields are located in the Northwest Shelf of the Permian Basin and are legacy oil fields with over 700 million barrels of original oil in place (OOIP) that have produced 48 million barrels of oil equivalent to date from the San Andres formation, via 40-acre vertical well spacing. The company has 100% working interest and approximately 81% Net Revenue Interests in these two properties.
By applying horizontal drilling and modern completion techniques and downspacing to 20 acre infill drilling locations the company can realize significantly better recoveries and achieve lower finding and development cost, than can be achieved through vertical development.
The Chaveroo NE field is contiguous to the Chaveroo field and is an extension of the field with a thinner San Andres pay interval that historically was not developed vertically. With horizontal technology and modern completion designs the Chaveroo NE field has been proven to contain oil and gas reserves that can be produced in economic quantities.