Sierra Pine Resources International (SPRI), in conjunction with its investment partner, has purchased an oil redevelopment project on about 3,600 acres in Dimmit County, Texas.
The lease-property is located just outside Big Wells, South of San Antonio, Texas. Over the past 40 years, 31 oil wells have been drilled on the acreage but the hydrocarbon reservoirs are far from depleted.
Several other oil and gas operators like Chesapeake Energy Corporation have invested significant resources in the area, which is a very good sign for operators drilling in the area. While this is not a new field, it does hold a great deal of potential to develop previously developed fields using secondary oil recovery methods, untried in the basin.
“I am very excited with the possibilities of significantly improving oil production from this lease,” said Bruce Ganer, Chief Executive Officer of Sierra Pine Resources International. “Even at today’s oil prices, this project looks to have strong economic performance characteristics and is a very good fit with our technical and operational strengths.”
Utilizing new technologies in drilling, completions, and enhanced oil recovery methods, SPRI expects to achieve a significant improvement in oil recovery. SPRI’s internal reserves estimations of remaining potential in the field were confirmed by third-party reserve estimates in excess of six million barrels of oil. SPRI Oil & Gas LLC. is excited about the upcoming opportunity and will operate the asset.
To find out more about the progress of SPRI’s E&P project in Dimmit County, you can read about our experiences in the following posts:
Keep checking back to the SPRI blog as we will continue to update you and the rest of our community about the progress we make as well as the challenges we face along the way.