The ODC San Andres & Taylor property is located in Gaines County, Texas in the Midland basin. Gaines is on the southern plains of West Texas. It is bounded on the east by Dawson County, on the south by Andrews County, on the west by New Mexico, and on the north by Yoakum and Terry Counties. The county seat is approximately 80 miles southwest of Lubbock. Gaines County coy county covers 1,489 square miles. Oil was discovered in the county in 1936.
The ODC (San Andres) Field was discovered in 1957 at a depth of approximately 5,450 feet. Currently there is 35 active oil wells and 15 water injection wells. The ODC San Andres Unit covers 1,226 acres HBP. Cumulative production from the field is 4,420 MBO and 1,477 MMCF. Current well spacing is 20 acres per well.
The W.J. “A” Taylor lease was drilled in 1970 and cumulative Devonian production is 1,153 MBO. There is currently one producing well and one water supply well.
Permex holds 41.4% working interest with a 34.7% net revenue interest and an additional 0.006% overriding royalty interest with 0.21% royalty interest in the ODC San Andres Unit. Permex also holds 48% working interest with a 41.51% net revenue interest and 0.083% royalty interest in the W.J. “A” Taylor lease.
Permex plans to re-stimulate the producing wells, frac the wells that have low fluid entry, bring online the shut-in wells as well as consider additional vertical and horizontal wells on the property. Since there are no depth restrictions, Permex owns all basement rights on this property which includes the highly sought after Wolfcamp.
The San Andres formation contains lenticular, discontinuous porosity and pay intervals of dolomite, anhydrite and siltstones. The ODC San Andres Unit was formed and the waterflood began in 1969. The San Andres Formation on the Northern and Northwestern Shelves of the Midland Basin is a progradational stratigraphic unit consisting predominantly of carbonate facies. Lithofacies include dolomite, laminated anhydrite and dolomite, massive bedded anhydrite, limestone, salt, and red beds. These lithofacies represent depositional environments that include deep-water outer shelf, shallow-water inner shelf, shallow-water to emergent shoals, and a sabkha complex that comprises intertidal to supratidal algal mud flats, hypersaline lagoons or brine pans, and terrigenous mud flats.
Deposition was cyclic; a cycle began with a transgression followed by a gradual shoaling-upward sequence. Cycles commonly terminated with subaerial exposure before renewed transgression initiated a new cycle. Much of the dolomitization probably occurred during periods of subaerial exposure in schizohaline environments. Likewise, porosity was probably also developed during subaerial exposure. Surface topography probably exerted considerable control on dolomitization and porosity development. Additional diagenetic alteration of carbonates may have occurred as a result of an influx of hypersaline brine.
San Andres reservoirs of the Northern and Northwestern Shelves yielded 12.7 percent of the total oil production for the State of Texas in 1980. Trapping mechanisms for the oil are both structural and stratigraphic. Maps and cross sections in this report document the nature of these mechanisms. Large volumes of oil are trapped in a discontinuous, structurally high, and stratigraphically thin belt that rims the deep northern Midland Basin and that overlies older shelf margins. Porosity zones thin updip from this belt; source rocks are subjacent to this belt of porosity. Additional oil is trapped in a series of steplike, updip porosity pinch-outs exhibiting little or nonstructural control. Regional porosity pinch-outs control the northern limits of oil production in the Northern and Northwestern Shelves of Texas and eastern New Mexico.