Big Sky Petroleum acquires interest in Wolfberry Texas assets

US-based oil and gas exploration and production company Big Sky Petroleum has bought a 90% working interest in about 2,300 acres located in Wolfcamp/Wolfberry block, in southern Midland Basin in West Texas, US, for an undisclosed amount.

Big Sky Petroleum will begin to drill the first vertical Wolfberry well in the first quarter of 2013.

The Wolfcamp area includes potential acreage of about one million acres and it thickness varies between 800ft -1,200ft, while some areas are up to 2,000ft thick.

It has a depth of about 5,000ft on the normally pressured south-eastern side of the area.

Average initial production (IP) the rates from the acreage are about 580 barrels of oil equivalent per day, so far IP rates have averaged about 700 barrels of oil equivalent per day with estimated ultimate recoveries (EUR) of 450,000 – 500,000 barrels of oil equivalent.

Gas produced by Wolfberry area is very rich with energy content of 1,200-1,500 btu per cubic foot, while IP rates are about 80 to 180 barrels of oil equivalent per day and EUR’s ranging between 120,000 to 150,000 barrels.

The company has 57 Wolfberry drilling locations based on 40 acre spacing.

Big Sky president Sam Nastat said that Geology in Southern Midland Basin reflects that it comprises high TOC, filled with silica, good porosity, natural fractures and optimal thermal maturation window for oil generation.

"Deeper drilling to depths beyond previously producing intervals and multi-stage hydraulic fracturing in both horizontal and vertical wells are important elements in the successful drilling in the area," added Nastat.