The San Andres Formation is one of the major hydrocarbon-producing units in the Permian Basin, with multiple reservoirs contained within the dolomitized subtidal portions of upward shoaling carbonate shelf cycles. The test well is located in Tedbit (San Andres) Field in northeastern Gaines County, Texas, in an area of scattered San Andres production associated with local structural highs. Selected on the basis of geological and historical data, the Oil and Gas Properties Wood No. 1 well is considered to be typical of a large number of San Andres stripper wells in the Permian Basin. Thus, successful completion of horizontal drain holes in this well would demonstrate a widely applicable enhanced recovery technology. Water-jet horizontal drilling is an emerging technology with the potential to provide significant economic benefits in marginal wells. Forecast benefits include lower recompletion costs and improved hydrocarbon recoveries. The technology utilizes water under high pressure, conveyed through small-diameter coiled tubing, to jet horizontal drain holes into producing formations. Testing of this technology was conducted with inconclusive results. Paraffin sludge and mechanical problems were encountered in the wellbore, initially preventing the water-jet tool from reaching the kick-off point. After correcting these problems and attempting to cut a casing window …