Texas: Wolfbone drilling expanding in Reeves

By OGJ editors
HOUSTON, July 28
-- Clayton Williams Energy Inc., Midland, Tex., plans to increase its company rig count to 11 from 7 at present in a play for oil in the Bone Springs and Wolfcamp (Wolfbone) formations in Reeves County, Tex.

Early indications are encouraging, but more production data are needed, the company said. Drilling and completion have started on 13 wells.

The company has leased 20,000 acres and will add much more acreage through a drill-to-earn farmout agreement with Chesapeake Energy Corp. Clayton Williams Energy earns a 75% interest in 640 net acres for each well that it carries Chesapeake to the tanks for a 25% interest.

Meanwhile, Clayton Williams Energy has drilled 154 Wolfberry wells in Andrews County, 128 on 80-acre spacing and 26 on 40-acre spacing. It has an inventory of 80 80-acre locations and 180 40-acre locations for development drilling. It is running three rigs but will release two of them in the near future.

In the quarter ended June 30, the company produced 2,800 b/d of oil and natural gas liquids and 1.25 MMcfd of gas from this area compared with 1,600 b/d and 400 Mcfd in the second quarter of 2010.

In Leon County, the company has spud the Hamill Foundation-1, an 18,000-ft exploratory well targeting a Deep Bossier sand that offsets and is updip to the Big Bill Simpson-1, a marginal gas well the company completed in early 2008 that cut thick lower and middle Bossier sections of limited porosity. The Hamill well is expected to cost $10 million to drill to casing point.

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