American Community Development has signed a Joint Venture Agreement (Farmin) for oil and gas exploration lands up to 35,000 acres, controlled by High Energy Resources (Farmor) in Union County, New Mexico.
The 35,000 acres of land is a fraction of a huge dome construction. Previously, 35 seismic miles were shot and six wells have been drilled in those areas. There is availability of important geophysical and geological information. Reprocessing of the present seismic has been planned and also a further seismic program performed to locate wells for a primary six well program. Several zones have been discovered from around a depth of 500 ft to 4,500 ft, along with many oil and gas structures. The Farmor will be the project operator.
A latest engineering report has stated that the total amount of oil will be 407 MM barrels, if the sands are saturated in oil in 35 parts elevated in the formation. 41 MM barrels are recoverable by utilizing a conventional estimated recovery aspect of 10%. The company has estimated that the wells analyzed commercially can generate 100+ barrels of oil per day and contains 400,000 barrels of oil as reserves. A 50% working interest will be possessed by the company in the six well program.
Source: http://www.acdihomes.com/