The State GC#2 well spudded on February 16th and at 0600 hours on February 17th is drilling ahead at 601 feet.
The State GC#2 well is located in the Permian Basin in Lea County in eastern New Mexico. The well is adjacent to the State GC#1 well which produces oil from the Lower Leonard Formation. This well has produced a gross 543,000 barrels and has a gross Expected Ultimate Recovery of 1.1 million barrels (this corrects earlier advice on this well), and the State GC #2 well can be expected to have a similar recovery so long as the amplitude response is proven to be accurate.
The State GC #2 well location has been developed through the use of 3D seismic which has been analyzed for amplitude response and both the State GC#1 well and the State GC#2 well are located in areas of elevated amplitude thought to be caused by the incidence of porosity. The credibility of the amplitude response has been enhanced because of the lack of amplitude associated with two dry holes drilled adjacent to the State GC#1 well by neighboring lease holders. Thus there is both positive and negative evidence that the porosity associated with the Lower Leonard can be imaged by 3D seismically derived amplitudes.
The well will be drilled to a planned total depth of 11,600 feet with the Lower Leonard target expected to be intersected at 11,400 feet.
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