The working interest in the properties covers approximately 2800 acres, located within Eddy County.
Currently there are 32 wells, which can be re-worked and brought back potentially to producing status, and additionally, there are over 100 possible new drilling locations based upon 20 acre spacing.
Water disposal will be handled via the Cave Pool Unit’s injection well, which decreases water hauling costs thus increasing the economics of the Cave Pool Unit.
The Cave Pool Unit is located within the Artesia Vacuum Trend, more within the Grayburg Jackson Pool.
The Artesia Vacuum Trend contains 13 reservoirs with more than 1mmbo historic cumulative production, and the depths to the top of reservoirs range from 1290ft to 4700ft.
Under the agreement, Quad Energy will pay up to $500,000 for the 60% working interest in the Cave Pool Unit.
