UNITED STATES
The Fiesta Project - Permian Basin, West Texas
| Key Project Information | |
| Land position: | ~19,000 net acres (~25,000 gross acres) |
| Working Interest: | ~78.2% potentially reducing to 62.4% after payout, Operator |
| Partners: | Private US oil and gas company |
| Resource Type: | Unconventional/Tight oil/liquids rich gas |
| Target: | Wolfcamp, Ellenburger and Canyon Sands |
| Stage of development: | Exploration |
Background
The Wolfcamp oil resource play is in the southern portion of the prolific Permian basin of West Texas, USA.
In October 2010, Molopo acquired a land position of 16,832 net acres (21,451 gross acres), located in Crockett County, Texas, USA. In August 2011, Molopo acquired a further 3,077 gross acres contiguous with its existing land position.
Reserves
No reserves certified for this project
Regional Activity
The Permian basin has long been a major area for conventional oil and gas. In recent years, advancements in horizontal drilling and fracture stimulation have started to unlock unconventional potential in new horizons in this area
A number of major independents such as EOG, Devon and El Paso have now started to target the Wolfcamp Formation. The increased horizontal drilling activity during 2010 and 2011 has seen encouraging well IP rates. Land prices have been increasing significantly in the area.
Geology
Molopo is targeting the Wolfcamp formation which is expected to be at a vertical depth range of 1,500m to 2,400m on its acreage with total gross thickness anticipated to be ~400m. There are also other prospective targets in shallower and deeper intervals on the acreage block, offering potential for additional hydrocarbon reserves and production potential.
The Wolfcamp formation has historically been a proven source rock and occasionally an additional production interval for developers who target the shallower Spraberry formation in West Texas.
The Wolfcamp yields light sweet oil which generally achieves or surpasses WTI Cushing parity. Gas produced in the area has ready access to export pipeline infrastructure.
Work Programme
Molopo has acquired, processed and interpreted over one hundred miles of 2D seismic across its acreage position. A 3D seismic acquisition is planned for Q1 2012.
Three exploration wells were drilled during 2011 with results expected in Q1 2012.
Page last updated: 05 Jan 2012