The proposals include the possibility of drilling an additional well in the same section, depending upon the success of the first two wells. The total cost for each well is expected to be approximately $4m.
The wells are proposed to be drilled vertically to a depth of approximately 9,500ft to the Bone Spring formation and laterally within the formation to the bottom hole location. Total measured depth of the wells is expected to be approximately 14,000 plus feet.
The time that drilling will begin is at the discretion of Cimarex, but it is anticipated that drilling will begin within approximately 90 to 120 days.
FieldPoint said it is aware of at least one horizontal well within approximately 5-10 miles of the subject area that had production tests ranging from 400 to 800 barrels of oil per day. This is not necessarily an indication of what the proposed wells should be expected to produce.
FieldPoint will own a 43.75% working interest, Cimarex will own a 37.5% working interest, and other partners will own the remaining 18.75% working interest in the two proposed wells.
