Camber Energy Inc. completed the acquisition of a leasehold position in the San Andres Formation in the West Texas Permian Basin, the company said Feb. 7.
Houston-based Camber, which develops oil and gas in the Austin Chalk, Eagle Ford, Permian and the Midcontinent Hunton Formation, formed an area of mutual interest (AMI) with a privately held Houston-based partner in the Permian’s Central Basin Platform, targeting about 20,000 net mineral acres. The initial leasehold is comprised of 16,322 gross (3,630 net) mineral acres.
Camber said it now owns a 90% working interest in the properties and can access the partner’s regional technical database, including its core sample and log libraries. Camber, which paid $1.43 million for the initial leasehold, will operate the properties.
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Camber will open a new core area targeting the San Andres, which is relatively shallow at 4,800 ft and has produced about 6 billion barrels (Bbbl) of oil, of which 2 Bbbl came from the Central Basin Platform. Since the first horizontal well was drilled in the formation’s residual oil zone, more than 100 wells have been drilled to date.
The San Andres has similar attributes to Camber’s de-watering Hunton play in Oklahoma, the company said, noting that de-watering and de-pressuring relatively high-water-saturated carbonates are a process developed by Camber’s Chairman Richard N. Azar while he worked at Altex Resources. The technology is now being applied to the Central Basin Platform, the company said.
Anthony C. Schnur, CEO, said Camber plans to begin a six-well drilling program in late 2017 and has identified additional locations beyond the initial area.
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