Permian Basin-focused HNR Acquisition Corp (HNRA) has introduced a big enhance in potential untapped oil within the Grayburg and San Andres oil zones.
The Houston-based firm stated in a information launch that there may very well be probably 34 million barrels of oil that may be accessed within the Grayburg-Jackson Discipline by merely including perforations to present wells in its leasehold. That is along with beforehand introduced confirmed reserves, HNRA famous.
The confirmed oil reserves of over 15 million barrels, mixed with the potential 34 million further barrels from the Grayburg and San Andres zones, will produce oil and a income stream for greater than 20 years at a gradual decline fee, HNRA stated.
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The Grayburg-Jackson area, which has confirmed reserves of roughly 15.4 million barrels of oil and three.5 billion cubic toes of pure fuel, is at present producing crude oil and pure fuel from waterflood operations primarily from the Seven Rivers zone. Third-party engineers Cobb and Associates have up to date HNRA’s reserve report for the top of 2023, based on the discharge.
The Grayburg-Jackson area is situated on 13,700 leasehold acres in Eddy County, New Mexico. The corporate has oil and fuel rights to the Seven Rivers, Queen, Grayburg and San Andres intervals. The mapped original-oil-in-place (OOIP) is roughly 876 million barrels of oil within the Grayburg and San Andres intervals and 80 million barrels from the Seven Rivers interval for a complete OOIP of roughly 956 million barrels of oil, HNRA stated.
“We imagine that primarily based on historic perforations, solely 44 % of the Grayburg-San Andres had been tapped”, HNRA Vice President of Operations Jesse Allen stated. “With continued waterflood optimization, sufficient uniform injection and infill drilling of 10-acre effectively spacing within the Seven Rivers, and now with elevated drilling within the Grayburg-San Andres sands, HNRA might see a big enhance in every day manufacturing that can result in report ranges of income and earnings”.
“After we acquired the Grayburg-Jackson area by way of the acquisition of LH Working, LLC, our workforce felt there was upside potential to extend the worth of the property by rising effectively spacing and by modernizing and enhancing upkeep of the sector”, HNRA Chairman Joseph Salvucci, Sr. stated. “After finishing the evaluation, we’re exploring the restoration of a lot further potential oil to be achieved by way of our present operations. The extra 34 million barrels of oil restoration is actually a recreation changer, not just for the corporate however for the shareholders, as it can add vital worth and can enhance income and earnings for years to return”.
Using a “twin path evaluation”, HNRA stated it’s targeted on maximizing short-term and long-term manufacturing within the Seven Rivers zone, in addition to assessing one of the best strategy to get better oil from the Grayburg and San Andres zones.
HNRA describes itself as an impartial upstream vitality firm targeted on maximizing complete returns to its shareholders by way of the event of onshore oil and pure fuel properties within the USA. The corporate stated its long-term aim is to “maximize complete shareholder worth from a diversified portfolio of long-life oil and pure fuel properties constructed by way of acquisition and thru selective growth, manufacturing enhancement, and different exploitation efforts on its oil and pure fuel properties”.
In November 2023, HNRA acquired its working entity, LH Working, LLC, whose property embody pursuits within the Grayburg-Jackson oil area within the Permian Basin in Eddy County, New Mexico.
To contact the writer, e-mail rocky.teodoro@rigzone.com
