The Peavy lease is located in Young County, Texas in the Permian basin. Young County is in North Central Texas. It is bounded by Archer County to the north, Jack County to the east, Stephens County to the south, and Throckmorton County to the west. Young County covers 931 square miles. The county seat is approximately 55 miles south of Wichita Falls and 65 miles northwest of Fort Worth.
The Peavy lease was drilled in 1988 and cumulative production from the Conglomerate formation is 60 MBO and 415 MMCF. There are currently nine producing wells, four shut-in wells, and one saltwater disposal well.
Permex plans to develop the Strawn sands that are up-hole across the entire lease. Initially three shut-in wells will be recompleted to the Strawn, five new wells will be drilled, and one well converted to an injection well. A waterflood EOR is planned for the Strawn.
Permex holds a 100% Working Interest in the lease, and a 70.4% Net Revenue Interest.
The Peavy lease covers 160 acres HBP and is productive in the Marble Falls, Conglomerate, Caddo Limestone, and other members within the Pennsylvanian Strawn formation. The formations are at depths from 2,000 feet to 4,200 feet.
Peavy Wells are completed in the Bend Conglomerate, Caddo Conglomerate, and the McClusky Sand. Bend Conglomerates of the Lower Atoka are the deepest producing zone at approximately 4,000 feet. Above the Bend is the Caddo Conglomerate at about 2,500 feet deep, and the uppermost producing interval is the McClusky Sand at about 1,900 feet below ground level.