Production and Development in West Texas and New Mexico for 1932

WEST TEXAS and New Mexico has been overshadowed by the develop-ment in East Texas to such an extent that the area has been placed on a settled production basis by most of the operators. Considerable develop-ment work on both proven and unproven acreage remains to be carried on, but the incentive, a ready and profitable market, has been lacking. The main characteristics of the fields in this area are so well known that they are not described again in this paper, which thus resolves itself into a statistical review of the more important production features of the area. Proration has been in effect during the year and has been rigorously applied with the full cooperation of all producers. Proration in West Texas and New Mexico is based in the more pro-ductive fields on a potential and acreage distrbution of the allowance to the individual wells or acreage units. Potentials are determined generally by a short production test of from 1 to 4 hr.; and the hourly rate is multiplied by 24 to obtain the 24-hr. production or rated potential of the separate wells. The potential values thus set up have been questioned by many production men who are not willing to concede that the instantaneous (hourly) capacity of a well to produce is its potential capacity for a day with all other wells in the pool producing at their capacity. However, the potential of a well determined as above remains its chief rating as a measure of the permeability in place and as an indication of the possible reserve feeding that well. , The acreage factor has made it unnecessary to overdevelop properties in order to obtain an allowance proportionate to neighbors who are willing to drill an excessive number of wells on a piece of acreage in the hopes of a quick drainage and a corresponding profit. Proration has resulted in an orderly development of many of the pools in this area on the base as out-lined above, resulting in more reasonable spacing of wells and the more even withdrawal of oil and the ensuing expectation of high recoveries.