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John Polasek - Wolfbone Appraisal and Development In Southeast New Mexico: An Evolution to Profitability

Super Basins 2019 Sugar Land, Texas

Super Basins 2019 Sugar Land, Texas

Summary

Wolfbone Appraisal and Development In Southeast New Mexico: An Evolution to Profitability. A talk given by John Polasek at 2019 Global Super Basins Leadership Conference in Sugar Land, Texas.
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Unconventional plays in the Permian Basin are a significant and growing part of Oxy’s business. By mid- 2018, Permian oil and gas accounted for 55% of Oxy’s total worldwide production. With nearly 5.2 million gross and 2.5 million net acres in the Permian, Oxy manages operations and production through two business units. The Permian EOR BU, which utilizes enhanced oil recovery techniques such as CO2 sequestration, waterfloods, and exploitation of non-EOR conventional play assets and the Permian Resources BU, which consists of growth oriented unconventional play opportunities particularly in the Delaware Basin of New Mexico.

The key growth engine for Permian Resources is developing the unconventional targets with pinpoint horizontal drilling, modern frac design and cost efficient execution techniques while utilizing a comprehensive technical workflow. The workflow starts with a regional basin overview to identify the primary rich source rocks and production analogs, followed by establishing an understanding of the source rocks geochemistry through cuttings and core analyses that leads to bench appraisal incorporating petrophysics, geophysics and geomechanics from pilot holes. The output is an integrated reservoir description within which 3-D seismic depth and impedance volumes play an integral role for development. Understanding the structural and stratigraphic complexities of our multiple reservoirs is critical to efficiently and effectively unlock the value of Oxy’s extensive acreage.

Maintenance and logistic hubs, secured supply availability, modular development and water recycling programs help improve execution efficiencies. In addition, an unmatched infrastructure position and technical expertise in EOR processes could help maximize ultimate recoveries and profits of our unconventional reservoirs.

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