The Palacios Field is located in the Southwestern portion of Matagorda County, Texas. Production is from the Upper and Middle portions of the Frio Formation. The Palacios Field, the North Collegeport Field, the Bruce-Flo Field and the Harrison Field were grouped together as these fields are situated on a common ridge and in some instances, wells designated as one field are located adjacent to the other.

Within the limits of the Palacios Field approximately 3200' of Frio has been penetrated. The oldest paleontological marker which has been found is the Discorbid D, which is of Middle Frio age. Twelve different Frio sands have yielded production from seventy-six different wells resulting in one hundred and eight completions. Daily oil allowable for this field in August of 1960 was 4,430 bbls of which 3,362 bbls was from the Melbourn sand which is Middle Frio age. Total daily gas allowable for December of 1960 was 22,709 MCF of which 14,373 was from the Melbourn. The Melbourn sands vary in thickness from approximately 10' on the crest of the structure to approximately 40' on the flank.

Palacios is a faulted ridge type structure which dips to the North-Northwest at the rate of approximately 200' to the mile on top of the Frio and approximately 350' to the mile on the Melbourn horizon. Normal down to the coast faulting more or less parallels the East-Northeast strike and varies in throw from approximately 50' to 150'. The structural features which effect accumulation are: (1) North dip closing against the down to the coast faulting. (2) the North dip turning West dip off the Western limits of production, and (3) a down to the East fault on the Eastern limits of production. The area enclosed within the productive limits of this field is approximately 21 sq. mi. The effective closure on the productive area varies from approximately 350' on top of the Frio to approximately 700' on the Melbourn horizon.

The Palacios Field was discovered in 1937 by the Glen McCarthy #1 Foley well. Twelve wells were drilled during 1937 and 1938, then there was very little activity until 1955. In that year Tidewater stepped out approximately two and one-half miles to the Northeast of this field and completed their #1 Slaughter gas well. This well extended the limits of the field in which an additional eighty wells have been drilled from 1955 to the present time.

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Palacios is an excellent example of what the future holds for exploration in the Gulf Coast. More large reserves of this type will be found on the flanks of structures which industry has considered defined for a number of years.

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