Developments in West Texas and Southeast New Mexico in 1951

Abstract

The year 1951 set a new record for the West Texas-Southeast New Mexico area in terms of exploratory and development drilling. Totals of 1,078 exploratory tests and 4,703 development wells were drilled during the year to open 105 new fields. Additions to proved reserves were double the 1950 rate. The Permian beds accounted for approximately 85 per cent of this addition. Spraberry wildcatting and development drilling dominated Permian Basin activities of 1951. Other outstanding developments included important pre-Permian discoveries in the Midland Basin, continued successful wildcatting in the Northwestern Shelf area of New Mexico, an intensive search for Pennsylvanian reef oil in the southern part of the Eastern Shelf, and deep wildcatting in the Delaware Basin. Exploratory activity increased in 1951 with emphasis placed on a greater subsurface geological effort and increased geophysical activity, the seismograph being used more extensively than ever before. The influx of new operators in the Permian Basin area intensified competition for leases. A trend of rising bonus and rental prices was often accompanied by a shortening of the familiar West Texas-Southeast New Mexico 10-year term lease to 5 years or even shorter terms. Those operators seeking large wildcat blocks were forced to lease in rank wildcat country west and south of the Pecos River in Terrell, Brewster, Presidio, Jeff Davis, Culberson, and neighboring counties. Record prices were paid at the two University of Texas land sales. It is anticipated that development of the Spraberry reservoir plus exploratory drilling in the Midland and Delaware basins, the Northwestern Shelf of New Mexico, and the southern part of the Eastern shelf will continue at an accelerated pace in 1952 to be curbed solely by a shortage of tubular goods.