The Pittcock South Lease is located in Stonewall County, Texas. Stonewall County is in Northwest Texas, in the central part of the North Central Plains. It is bounded on the north by King County, on the east by Haskell County, on the south by Fisher and Jones Counties, and on the west by Kent County. The county seat is approximately 60 miles north-northwest of Abilene. Stonewall County covers 926 square miles
The asset is situated on the Eastern Shelf of the Midland Basin and the predominant producing formations are the Wolfcampian Upper and Lower Tannehill Sands. The Pittcock south lease was drilled in 1996 and cumulative production from the Tannehill is 270 MBO. There are currently six producing wells, thirteen shut-in wells and two saltwater disposal wells. Production has benefited from water injection into the reservoir.
Permex has completed a detailed reservoir study of the lands and has concluded that areas within the reservoir are under performing and have the potential to be optimized through modification of the water injection scheme. Permex also plans to re-enter eleven wells and drill twelve new wells. All wells will be completed in the Upper and Lower Tannehill.
Permex holds a 100% Working Interest in the lease, and a 71.90% Net Revenue Interest.
The Pittcock South lease covers 498 acres in four tracts and is productive in the Clearfork formation at a depth of approximately 2,900 feet. The productive Clearfork horizons are the Upper and Lower Tannehill which consist of dolomites, anhydrites and silts. At Pittcock south, the productive Tannehill Sands occur at a depth of approximately 2,900 feet. Typically, the reservoir sand is high permeability and high porosity, consisting of coarse grained sandstone with minimal amounts of calcite cementation. The Upper Tannehill is the less porous of the two sands, averaging approximately 19% porosity, while the Lower Tannehill is approximately 23% porosity. Oil is structurally and stratigraphically trapped in the reservoir with underlying water.