Papers - - Production - Domestic - Oil and Gas Development in New Mexico (c6da2b40-f3f9-433c-b270-5754dacefbda)

The oil and gas industry of New Mexico recorded notable progress ill 1935. More wells were brought in than in any previous year, and important new discoveries were made. The total number of completions was 340, of which 260 were oil wells, 8 were gas wells and 72 were dry holes. The total oil production was 20,228,947 bbl., an appreciable increase over the 1934 production of 16,636,804 barrels. Many of the wells completed in southeastern New Mexico were acidized. This treatment proved highly effective in increasing the capacity of the wells, the resulting potentials usually being two to ten times as large as before acid treatment. In the Lea County fields in which proration was entirely on an acreage basis, the tendency of many of the operators was to complete their wells according to best conservation practice rather than to obtain the largest possible potential. Much remedial work was done in the Hobbs, Cooper, Jal and Eunice fields, and with excellent results. At many of the wells high gas-oil ratios were greatly reduced and encroaching waters shut off by setting packers. Several companies carried on pretentious geophysical campaigns in the southeastern part of the state. The location of the Amerada discovery well in the Monument field was based on geophysical surveys. The New Mexico Oil Conservation Commission, established by the 1935 Legislature and consisting of the Governor, the Commissioner of Public Lands and the State Geologist, began to function in May. Production in the state thereafter was based on orders issued by the Commission. Proration in the Hobbs field, which had been provided for since July, 1930, by successive proration agreements signed by all operators in the field and approved by the State Geologist, was continued by the Commission by giving approval to the current proration agreement,. A plan of proration for the other Lea County fields that had been in offect since early ill 1934 was adopted. 111 September, 1935, the Commission approved a. proration agreement for the Artesia-Jackson-Maljarnar area in Eddy and Lea counties that had been agreed upon by