A cooperative study of the Grayburg/San Andres reservoir is being conducted in response to the United States Department of Energy's (DOE) Class II Oil Program. The project is cost shared by industry and the DOE.

Production problems associated with shallow shelf carbonate reservoirs are being evaluated by a technical team integrating subsurface geological, reservoir engineering, and 3-D seismic data. The results of the integrated effort are recommendations for infill drilling and work-over locations and the design of an effective waterflood. The study demonstrates a methodology for reservoir characterization and subsequent development of the Grayburg and San Andres reservoirs that is feasible for independent operators. Furthermore, it provides one of the first public demonstrations of enhanced reservoir characterization of a small area (880 acres) using reservoir simulation and high resolution 3-D seismic data.

Results of the reservoir simulation indicate significant potential remains study wide in the lower Grayburg, and in limited areas in the upper Grayburg and San Andres. Work-over and new drill recommendations based on the simulation results have, to date, led to the discovery of significant additional reserves. The simulation demonstrated that without this effort all wellbores in the study area would have been abandoned in seven (7) years.

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