- Producing
- Natural Gas Focused
- Producing formations (Canyon Sandstone)
- Nine wells completed
- Additional drilling opportunities are available
- Located in Crockett County, Texas
Prospect Background
The Company received its first production revenue from this field in March of 2008 and continues to receive income today. Canyon sandstones are the primary hydrocarbon target within this prospect and they form a prolific low-permeability gas play located in the famous Val Verde Basin of this Southwest Texas.
Natural gas from the Canyon Sandstone generally receives a 25% or more premium in price above the standard market price for natural gas due to its higher BTU content per cubic foot. Currently nine gas wells are producing and four are awaiting completion. Completion timing is impacted by current market prices.
The Canyon Sandstone gas play is part of the large prolific Adams-Baggett Canyon Sandstone gas field. The Canyon Sandstone formation is found at a depth of 4,300 feet to 4,900 feet. The average life span of a Canyon Sandstone gas well is approximately 30 years, the decline production curve starting during the first year.
These Canyon intervals are composed of thinly interbedded sandstone and mudstone, which formed in slope and basin depositional systems. The more tabular Ozona interval occupies a basin-floor position adjacent to the south margins of the Ozona Arch and the Central Basin Platform. Within this existing gas field are two deeper zones, Strawn Limestone and the Ellenburger Dolomite. The Strawn zone is usually found at 9,000 to 9,800 feet, while the depth of the Ellenburger zone is between 10,500 and 11,500 feet.
Additional development opportunities are currently being evaluated.
Victory has contracted with this full service operating company to further develop this well established natural gas play. Additional information about Cambrian can be found by visiting their web site.
Victory holds a working interest in nine wells; 100% WI and a 75% NRI in seven wells and a 50% WI with 38% NRI in two wells.
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