Papers - - Production - Domestic - Oil and Gas Development in New Mexico

NO important discoveries of petroleum during 1933 were reported from New Mexico. Lea and Eddy counties were the centers of activity during the drilling season and each had a number of interesting completions. The Hobbs pool, in Lea County, was definitely outlined on the east, north and northwest. Under an agreement reached last summer by state officials and operators, the Hobbs pool was continued under proration throughout the year. One hundred eighty-four units of 40 acres each were being produced at the end of 1933. The allowable was 21,306 bbl. daily at the beginning of 1933, but when the agreement was revised in the spring the minimum was raised to 30,000 bbl., and by the end of the year had been raised to 33,473 bbl. At present the field is being prorated on the basis of 25 per cent on acreage and 75 per cent on potentials except in the southwestern edge of the field, where water encroachment is a problem. In this area the basis of proration is 40 per cent on acreage and 60 per cent on potentials. A corrective method employed in this part of the field has been partly successful. The water is advancing in the upper part of the pay, a dolomitic limestone, and in a number of instances packers have been set in the pay below the water and above the oil. The locating of a satisfactory seat for a packer is difficult and in some instances has not been a complete success. Pipe line runs from the field during the year aggregated 11,413,218 bbl., bringing the total gross production up to 41,093,681 bbl., of which 39,000,-000 bbl. has been produced under proration, which went into effect on July 10, 1930. On Nov. 30, potentials were determined on the assigned pressure basis and the total was reduced 71,165 bbl. daily, to 1,265,-332 barrels. The outstanding completions in the Hobbs pool were three in number, of which the best was the Humble Oil & Refining Company's No. 3B Bowers in sec. 20, 18S., 38E., with an initial production of 11,664 bbl. of oil and 10,000,000 cu. ft. of gas. The Shell Petroleum Company's No. 4B McKinley, in the same section, produced at the rate of 22,940 bbl. of oil while flowing open, but when tubed, flowed at the rate of 6610 bbl. The third outstanding well, No. 4 Hardin of the Tidal Oil Co., and located in