US onshore oil and gas producer Pacific Energy Development has chalked out its plans to drill 16 horizontal wells in 2018-19 in the San Andres play in the Northwest Shelf of the Permian Basin.


Image: Pacific Energy Development to drill 16 horizontal wells in the San Andres play. Photo: courtesy of Stuart Miles/

The drilling of the wells is part of the company’s development plan for its recently acquired Permian Basin assets in the Chaveroo and Milnesand fields in West Texas and eastern New Mexico.

The assets, which are spread over 23,000 net leasehold acres, were acquired from certain US subsidiaries of Hunter Oil.

Pacific Energy has currently launched a fast-track development plan which will cover a phase one drilling program and completion and evaluation of the results of an initial four horizontal wells in the next three to six months.

The company said that it plans to carry out and complete 12 more horizontal wells in 2019 as part of a second phase of its development program.

According to Pacific Energy, more than 440 vertical San Andres wells have been drilled on a 40-acre spacing in the Chaveroo and Milnesand fields where 48 million barrels of oil equivalent were recovered. An estimated 600 million barrels of oil equivalent remain in place at the two fields, said the shale oil and gas producer.

The company is planning infill drilling with horizontal wells to bring the spacing down to 20 acres in order to convert proven undeveloped reserves to proven developed producing reserves, and also as converting probable and possible reserves to proven reserves.

Pacific Energy president J. Douglas Schick said: ”We have spent a long time evaluating multiple opportunities in the San Andres and we believe these Assets ideally fit our strategy. We believe this acquisition and development plan will transform our Company into one of the key players in the horizontal San Andres play.

“It offers us a unique opportunity to horizontally down space two main pay fields, which is a rarity in legacy San Andres assets.”

Recently, Pacific Energy bought 100% ownership of Condor Energy Technology, which owns and operates four horizontal wells producing from the Niobrara formation, and nearly 2,340 net acres held by production. All the acquired assets from Condor Energy are located in the D-J Basin.