The overall objective of this project is to demonstrate that a development program based on advanced reservoir management methods can significantly improve oil recovery at the Nash Draw Pool (NDP). The plan includes developing a control area using standard reservoir management techniques and comparing its performance to an area developed using advanced reservoir management methods. Specific goals are (1) to demonstrate that an advanced development drilling and pressure maintenance program can significantly improve oil recovery compared to existing technology applications and (2) to transfer these advanced methodologies to oil and gas producers in the Permian Basin and elsewhere throughout the U.S. oil and gas industry.

Read and Stevens has proposed the evaluation of the waterflood potential from the Cherry Canyon formation in the NE Lea Field in lea County, New Mexico. Much of the development in this area is approaching primary recovery limitations; additional recovery of remaining oil reserves by waterflood needs to be evaluated. The Cherry Canyon formation is composed of fine grained sandstone, containing clay material which results in high water saturation, and also has the tendency to swell and reduce reservoir permeability--the ability of fluid to flow through the rock pores and fractures. There are also abundant organic materials that interfere with obtaining reliable well logs. These complications have limited oil in place calculations and identification of net pay zones, presenting a challenge to the planned waterflood. Core analysis of the Cherry Canyon should improve the understanding of existing well logs and possibly indicate secondary recovery measures, such as waterflood, to enhance field recovery. Lacking truly representative core to provide accurate analyses, Read and Stevens will obtain and preserve fresh core. The consulting firm of T. Scott Hickman and Associates will then collaborate on special core analyses and obtain additional well logs for a more detailed analysis of reservoir properties. The log …