By exploiting the pre-existing infrastructure at proven, legacy assets, Hunter Oil are able to capitalizes on a significantly reduced exploration and finding cost threshold that enables profitability.
Milnesand and Chaveroo were first developed in the 1950’s and 1960’s, with vertical well production technology, leaving significant recoverable reserves behind. The geology of the San Andres formation produced only a fraction of the OOIP, yielding some 40 million barrels of oil. The ongoing opportunity is a result of the low level of permeability in the lenticular dolomite formation of the San Andres. Hunter Oil’s operations involve re-accessing these existing reservoirs, and developing the resource utilizing contemporary completion techniques and proven, unconventional recovery technologies.
Estimating recovery of only 6% of the remaining OIP, independent reservoir engineers have certified Hunter's fields as capable of producing 11.3 million barrels of oil, with the development of 71 horizontal wells. Our plan is to commence drilling Chaveroo and Milnesand sites in Q3 of 2017. Development and exploitation will entail a combination of horizontal wells extending between 4,000’ and 7,000’ laterally.
General Location Map
An infill horizonal development is planned for Chaveroo and Milnesand using the latest drilling and completion techniques. The 6-year program is planned to commence mid-2017.
The Company holds a 100% Working Interest (WI) and an average 80% Net Revenue Interest (NRI) in approximately 23,000 acres in the two fields. Both fields produce from the resource rich San Andres formation.