Chevron Submits Master Development Plan For Hayhurst Development Area In Eddy County, N.M.

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NM
United States

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Description

A proposed Master Development Plan (MDP) has been submitted by Houston-based Chevron Corp. to the Bureau of Land Management’s Carlsbad Field Office outlining exploration and development plans within the Hayhurst Development Area in Eddy County, N.M. The plan, according to IHS Markit, includes development within an approximate 8,866-acre area on lands primarily administered by the BLM’s Carlsbad field office, but also includes state-owned and private lands. If the MDP is approved, Chevron would drill up to 436 oil and gas wells on 109 well pads. Five water disposal wells are also planned. The MDP also addresses infrastructure such as roads, pipelines and facilities. Target zones on the acreage include multiple Bone Spring and Wolfcamp objectives. Included in the MDP are 12 Applications for Permit to Drill (APDs) for two-well pads in Section 3-26s-27e and Section 17-26s-27e. Approval of the proposed action would also approve the 12 APDs and the construction of the two pads and related infrastructure. APDs for the remaining 424 wells would be submitted at a later time. Chevron announced 100 of the proposed well pads would be located on BLM-administered surface lands, and wells drilled from these pads would produce federal minerals for which Chevron has existing leases. Nine well pads would be located on surface lands owned by the State of New Mexico and would partially produce from both federal and state leases. In 2013, Chevron initiated a horizontal program in the Hayhurst area in townships 25s-27e and 26s-27e. The company has completed 14 oil and gas wells to date. Combined, the 14 wells yielded 30.084 Mbbl of crude, 336.2 MMcf of gas and 49.489 Mbbl of water in May 2016, mostly from Bone Spring.