|Formation:||Spraberry, Fusselman, Cline Shale|
|No. of production wells:||4|
Glass Prospect (Glasscock County, TX) located in Glasscock County, Texas, is in a project area encompassing 1,280 gross acres and 640 net mineral acres located in the oil-rich Permian basin region and is operated by Apache Corporation (“Apache”). Circle Star holds a 3.167% non-operated interest in the project. To-date the operator has completed 4 productive Spraberry formation wells and is evaluating the potential for additional development.
While development on the Glass Prospect leases has focused on the Spraberry formation to-date, the project is prospective for both Fusselman and Cline Shale opportunities. Apache is actively drilling horizontal Cline shale wells in the same field as the Glass prospect, and a recent Cline well drilled by Apache produced 8,800 bbl of oil equivalent in the first 30 days on line. Potential for the property includes up to a total 32 future wells (40 acre spacing) for each of the Fusselman and Cline Shale targets as well as up to 60 locations (20 acre spacing) for the Spraberry target.
Spraberry: Covering 2,500 square miles and six Texas counties, the Spraberry Formation is one of the largest in the nation for total proven reserves. The formation produces oil from a single enormous sedimentary unit located between the depths of 5,100 and 8,300 feet. In 2007, the U.S. Department of Energy ranked the Spraberry Trend third in the United States by total proved reserves and seventh in total production. Estimated reserves for the entire Spraberry-Dean unit exceed 10 billion barrels. To-date the formation has produced an estimated one billion barrels of oil.
Fusselman: The reservoirs in the Fusselman formation of the Permian Basin of West Texas and New Mexico has accounted for more than 356 million barrels of oil production as of 2000. Despite the economic significance of the formation, relatively little detailed geological information is available regarding key aspects of the reservoir development. The Fusselman attains maximum thicknesses of more than 600 ft. in south easternmost New Mexico and far West Texas and thins eastward. Garfield and Longman (1989) documented truncation of the Fusselman beneath the Wristen Group in the Martin/Midland/Glasscock County area. This truncation has also been defined in temporally equivalent rocks in Oklahoma which may prove significant in the ongoing development of the region.
Cline Shale: located in the lower Wolfberry formation, the Cline Shale is a deeper formation that exhibits similar petrophysical attributes and favorable economics compared to other liquids-rich shale plays operated by other companies, such as in the Eagle Ford and Bakken Shale formations.