Imperial Oil & Gas has signed a conditional farmout agreement to earn acreage by drilling the Stateline infill development project in the existing Sawyer Field, New Mexico.
The company has up to nine months to drill the initial test well which will earn 40 acres and then can drill three additional wells to earn the remaining acreage in the agreement, subject to a reservation by the assigning party of a 10% working interest in each well drilled.
Four vertical infill wells can be accommodated in the acreage under the present spacing requirements in the Sawyer Field, the company said.
With considerable well control in the area and subsequent to a review of analogous vertical wells nearby, reserves for the Stateline wells can go beyond 30,000boe per well.
Imperial CEO Rob Durbin said that the project is ideal for the company as it perceives it as a relatively low risk project.