Dynex Energy S.A. strengthens its North American operations

Dynex Energy S.A. a Luxembourg-based oil and gas investment company, has announced a series of strategic deals and partnerships aimed at expanding its operations in North America. Dynex Petroleum LP, a wholly owned subsidiary of Dynex Energy S.A., has signed a Management and Consultancy Agreement with Dallas-based RHS Oil & Gas LLC. This partnership will bring additional size and expertise to Dynex Energy, furthering the company’s expansion efforts and portfolio in North America.

RHS Oil & Gas LLC is led by Rick Shirley, who has more than 30 years of experience in oil and gas prospect generation and is a recognised industry expert. The agreement between Dynex Energy and RHS looks to identify areas for development to add to the company’s existing lease base. Under the agreement, RHS will leverage on its specialisation in reviewing and optimising drilling schedules to support Dynex in maximising their returns on investment.

Already the partnership, formalised on 13 September, has helped identify two new potential areas for development, including the Riggan Project in DeRoen Field Area of Dawson County, Texas, where Dynex has partnered with Tidewater Resources of Midland for a 10% working interest in the Project.

The operator SDX Resources of Midland currently controls 1 677 net acres in Texas. This field has historically produced 2.4 million bbls of oil from 25 completions, with an average of 97 000 bbls of production each. The estimated total costs per well, including acreage, seismic, drilling and completion costs, are US$ 1 650 000.

In preparation for the drilling of the two initial wells on the acreage block, SDX acquired all the available seismic analyses to carefully refine locations. A more in depth evaluation of various logs has indicated that several additional pay horizons exist within the project area. These include the Upper and Lower Spraberry, the Upper and Lower Gin Sands, the Felken, and the Jo Mill Sands - all areas that will be evaluated in the process of drilling to the Mississippian horizon.

DeRoen Field has completed as producing oil wells 96% of the historic wells drilled, however 15 of the 24 completions accounted for 91% of the past production, indicating the importance of porosity to the productivity of the Mississippian horizon. Upon completion  of the first two wells in the project, which will be drilled on structural highs, it is expected that up to forty additional drill locations will be identified as offsets.

In addition to this, at the end of August 2013, Dynex Petroleum LP successfully completed McCarty 23 No.2, the first well in its recently acquired DeRoen project. The well was spudded on 2 June 2013 and drilled vertically to a depth of 10 600 ft into the Mississippian Formation and stimulated with a 2-stage fracturing. The well began production on 1 September 2013 and the current production levels are fully aligned with the expectations for the prospect.

Dynex expects to use the cash flows deriving from the oil extraction to further fund capital expenditures. The DeRoen prospect consists of 1660 acres in the Permian basin and at this time the company has already identified 32 ideal drilling locations. The 2nd well of the DeRoen Project was spudded a few days ago and the results are expected by the end of November.

Adapted from a press release by David Bizley

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/23102013/dynex_energy_strengthens_its_north_american_operations/