In early October, Canyon Creek started delivering casinghead gas
into a low-pressure pipeline operated by WTG.
The casinghead gas
is now free to flow into the WTG pipeline without having to buck the 80-psi line pressure.
Once the water flooding procedures take effect, we could exceed 1500 barrels of oil per month and 3,000 mcfgpm of casinghead gas
The gas purchase and processing agreement provides that Canyon Creek will receive a percentage of the liquids processed from the casinghead gas
Canyon Creek is also reviewing a gas purchase contract to market casinghead gas
at its Hagler leases in Coleman County.
The well is currently producing 48 barrels of oil per day and 183 mcf of casinghead gas
per day from the Mississipian Reef formation.
The two existing wells are currently producing combined daily production of 56 barrels of oil per day and 80 mcf of casinghead gas
The Eskota system gathers liquids-rich casinghead gas
in Nolan, Fisher, Jones and Taylor counties and moves it into the Jameson gas gathering system, which feeds the Jameson gas processing plant complex in Coke County.
The Snyder Gas Plant removes the liquids from approximately 28 million cubic feet of casinghead gas
per day produced primarily from the SACROC Unit, a waterflood and CO2 injection operation which has produced over 1.
This temporary delay does not affect the producers' gas well and casinghead gas
allowables, which presently total 2,388 mcf per day for wells operated by Arch in the Keystone Ellenburger Field.
These two wells, the Bivins 8-14M & 6-14M also produced casinghead gas
at a combined rate of 186 MCFGPD during their potential tests.