The KDM #1 well is an existing wellbore drilled to the San Andres formation and completed in the commonly producing member of the San Andres in the area. The lease to the East has produced a significant amount of oil in its lifetime and currently produces a high volume of water with that oil. The OZTX #2 well, a direct offset to the east of the KDM #1 well, produces 4-6 BOPD and approximately 200 Barrels of Water per day. The KDM #1 was shut down due to a failure of its down hole pump setup. Bonfire tested the well to verify this production point and our tests show that the current setup is only capable of moving 100 - 125 Barrels of fluid per day which is far short of the required 200 BPD movement requirement for the 4-6 BOPD production rate. We did however get a production rate of 1 – 1.5 BOPD but were unable to fully pump the fluid off of the wellbore due to pump restrictions. The KDM lease has not been produced as heavily as the offsetting OZTX lease and should provide a higher production rate of oil than the offsetting lease due to its lack of reservoir drainage. Some surrounding leases have shown great success producing out of the Greyburg increasing EUR’s by as much as 100% The plan for the KDM #1 well will be to pull the rods and tubing out of the hole, inspect all aspects of the assemblies, dual complete in the Greyburg and run back in the hole with a larger pump capable of moving higher volumes.
he KDM #3 is an open wellbore that has been permitted for injection and approved. The process of permitting the well for injection and installing a liner has been completed which will allow us to easily re enter the well and turn it to injection. Because we will be producing higher volumes of water, we will be able to utilize this well to dispose of the water at no cost to the partnership thereby increasing the economic viability of the wells.
The plan will be to enter the well and drill out the old cement that is left over in the well. We will then perform a light acid job on the well, install water injection lines from the main battery and install our injection pump to inject the fluids into the formation as per TX RRC guidelines.
The BONFIRE-KDM #4 will be an infill drill drilled directly in between producing wells. The well will have a very high potential for success and will be dual completed in the San Andres and Greyburg. The well will feed into the main battery which will dispose of water through the injection well. This well will be located in the south western corner of the lease with production located on all sides of the well.

Posted Oct 10, 2016

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