The Pittcock North is situated in Stonewall county. Stonewall County is in Northwest Texas, in the central part of the North Central Plains. It is bounded on the north by King County, on the east by Haskell County, on the south by Fisher and Jones Counties, and on the west by Kent County. The county seat is approximately 60 miles north-northwest of Abilene. Stonewall County covers 926 square miles.
Permex originally initiated a waterflood EOR on February 2016. The waterflood was successful and designed to move water across the lease west to east towards a shale pinch-out in the Northeast part of the lease. Permex successfully increased production from the field by 160%, however due to the Water Supply Well (“WSW”) constantly having downhole mechanical issues and going down, the company halted the waterflood in 2017. Permex began reviewing the process with Schlumberger and as of July 2018 changed the mechanical portion of the water supply well to utilize “artificial lift” versus the traditional pumpjack. With the change to a Schlumberger Electric Submersible Pump unit (“ESP”), Permex will not only avoid the supply well going down, but now can increase its waterflood to over 2,000 bwipd for maximum sweep within the field. The plans are to increase the daily water injection to a total of 2000 BW, reenter four shut-in wells and drill eight new wells that have been identified by the company geologists for infill drilling.
Permex holds a 100% Working Interest in the lease, and a 81.25% Net Revenue Interest.
The Pittcock North lease covers 320 acres HBP and is productive in the Clearfork formation at a depth of approximately 2,900 feet. The productive Clearfork horizons are the Upper and Lower Tannehill. The Pittcock lease was drilled in 1982 and cumulative production from the Tannehill is 239 MBO and 20 MMCF. There are currently six producing wells, four shut-in wells, two saltwater disposal wells, and a water injection well.
The asset is situated on the Eastern Shelf of the Midland Basin and the predominant producing Formations are the Wolfcampian Upper and Lower Tannehill Sands. At Pittcock, the productive Tannehill Sands occur at a depth of approximately 2,900 feet. Typically, the reservoir sand is high permeability and high porosity, consisting of coarse grained sandstone with minimal amounts of calcite cementation. The Upper Tannehill is the less porous of the two sands, averaging approximately 19% porosity, while the Lower Tannehill is approximately 23% porosity. Oil is structurally and stratigraphically trapped in the reservoir with underlying water.