Exploration & Production | Deals - Joint Ventures
Mexco Jumps In to Permian Wolfcamp JV Project; Plans Seven Wells
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Mexco Energy Corporation plans to drill certain oil and gas properties in the Permian Basin of West Texas.
Mexco Energy Corporation will participate as a working interest owner in a joint venture for seven horizontal wells developing the Wolfcamp formation on a 1,125 acre property in Reagan County, Texas. These wells are to be drilled during 2014 using horizontal drilling and multi-stage fracture stimulation. Mexco's estimated costs in this development for its approximately 0.57% working interest (0.49% net revenue interest) are $350,000.
The Wolfcamp formation in this area is approximately 1,700 feet thick section consisting of interbedded organic shales and carbonates. The Wolfcamp formation in this area includes two reservoir units, the "A" and "B" benches that have both been successfully developed with horizontal wells. Typically, offset drilling units have been developed with 1.5 mile laterals at 1,300 feet well spacing in each bench. The completion programs for the proposed wells are designed with 50 fracture stages at a total measured depth of 15,000 feet including the horizontal portion.
In this area, Mexco has various interests in 6 horizontal wells and 276 vertical wells in adjacent Reagan and Upton Counties, Texas. Mexco's net revenue interests in these wells range from .013% to 1.558% where there is potential for further horizontal development.
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