February, 2001
The Bureau of Land Management (BLM) has collected
$3,505,234.50 from the sale of oil and gas leases on public lands in New Mexico, Oklahoma,
and Texas. The total includes bonus bids, administrative fees and first year's rentals for
these leases. The oral auction was held on January 17, 2001, at the BLM, 1474 Rodeo Road,
Santa Fe, NM. BLM offered 75 parcels totaling 43,169.62 acres; of that 72 parcels totaling
41,660.23 acres were leased. Breakdown of bonus bids by State are: New Mexico 69 parcels
sold, 41,164.60 acres for $3,404,679.00; Oklahoma 1 parcel sold, 100.00 acres for $525.00;
Texas 2 parcels sold, 395.63 acres for $100,030.50. The highest per parcel bid was
$275,200.00 for a 640.00 acre parcel located in Chaves County, NM. The Parcel was won by
Chalfant Properties Inc., of Midland, TX. The highest per acre bid was $850.00 for a
320.00 acre parcel also located in Chaves County, NM. The Parcel was won by Yates
Petroleum Corporation, of Artesia, NM. The leases are awarded for a period of 10 years and
so long thereafter as there is production in paying quantities. The government receives 12
½ percent royalty on production on those leases. The States also receive 50% of revenue
for schools, roads, etc. Those parcels not receiving a bid are available for
noncompetitive filing at the BLM's Information Access Center, 1474 Rodeo Road, Santa Fe,
NM. The next Oil and Gas Lease Sale Auction is scheduled for April 18, 2001.
New Mexico Test Shows Downhole Mixing Technology Can Boost Gas
Production
Carlsbad, NM - An Energy Department-sponsored project in New
Mexico has shown that mixing the fluids used to fracture a natural gas formation at the
bottom of the well, rather than on the surface, could lead to a better, safer, and much
lower cost way to coax additional gas out of low-producing fields. RealTimeZone
Inc., of Roswell, NM, used the downhole mixing technique for the first time in a
12,300-foot natural gas well in Carlsbad, NM. Not only did the company succeed in
restoring nearly 300,000 cubic feet per day of natural gas production from a well
scheduled for plugging, it also showed that the cost of the fracturing process could be
cut in half.
RealTime Zone's method differs from conventional fracturing techniques in that the
fracture fluid is mixed downhole rather than on the surface. This allows the fluid to be
changed right at the formation some 12,000 feet into the earth, giving the operator more
control over the fracturing process. Changes in stimulation pressures monitored at the
surface allow operators to know if the fracture is being created as planned. If necessary,
the operators can change the fluid mixture to ensure that a fracture goes in its intended
direction. The fluid used in the New Mexico test was made of bauxite mixed with a methanol
gel at the surface that was blended with liquid carbon dioxide down the borehole. The
bauxite props the fracture open while the liquid carbon dioxide and methanol-gel, which
create the fracture, carry it deep into the formation. Because carbon dioxide becomes a
gas once the pressure is reduced after the fracture is formed, it comes out of the
formation faster than a fluid. This allows the fracture fluid to be removed from the
formation at a faster rate, which, in turn, enables the well to produce gas sooner.
The Energy Department's National Energy Technology Laboratory – the primary field
office for the department's Fossil Energy research program – began working with
RealTimeZone on the hydraulic fracturing project in May 1999. Valued at $1.3 million with
the federal government contributing $922,000, the project is in its last two phases. Phase
1 was a feasibility study. Phases 2 and 3 involve field testing the downhole mixing
technique and real-time monitoring of the fracture as it is created. Between now and the
time the project is scheduled to end in June 2002, operators will focus on measuring
fracture height to make sure the fracture does not veer off its planned course. For
more information, contact:
Robert C. Porter, DOE Office of Fossil Energy, 202/586-6503, e-mail robert.porter@hq.doe.gov
Otis Mills, Jr., National Energy Technology Laboratory, 412/386-5890, e-mail mills@netl.doe.gov
Technical contact:
Gary L. Covatch, National Energy Technology Laboratory, 304/285-4589, e-mail: covatch@netl.doe.gov
The Department of Energy (DOE) Strategic Center for Natural Gas and the National
Petroleum technology Office, within the National Energy Technology Laboratory, The
Pennsylvania State University, and the University of Tulsa have announced the
establishment of a nationwide domestic petroleum and natural gas stripper-well consortium.
This consortium will seek to improve stripper-well production by identifying and obtaining
co-funding from small government and industry research and development projects. The DOE
will provide up to $3 million over 3 years to fund projects selected by the consortium.
The consortium will be composed of full members and affiliate members; only full members
can submit research and development proposals, have access to low-cost technology
transfer, or steer research into areas of strategic importance to their companies. |
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