Operations. Overview

Waterflood Operations

Waterflooding process is a secondary recovery method to produce incremental oil and gas after production via the primary recovery method from natural pressure diminishes. The waterflood process uses the injection of water into an oil-bearing reservoir for pressure maintenance to produce the incremental oil. Waterflooding wells are typically in a pattern of 5 wells which look like the 5 of a die. The middle well is a producing well, and the four corner wells are water injection wells. The injected water puts pressure on the oil to stimulate oil flow through the rock to the producing well for recovery.

The pattern is expanded with common-side patterns to maximize overall field oil and gas recovery. Other benefits to a waterflood property are the oil and gas recovery is a long-lasting, low decline oil production. This creates a long-term steady revenue stream, which is a strong base to generate sustain cash flow and earnings. Additionally, because a waterflood field has over many patterns and wells, the geological and mechanical risks are significantly mitigated. This steady revenue stream and low-risk oil recovery waterflooding method increases the economic value of the asset as the property is developed.

Our first acquisition was the Grayburg-Jackson oil field which is a waterflood property located in the prolific Permian Basin of New Mexico.