October 31, 1975 - Gerald R. Ford Presidential Library and Museum

future reservoir production operations, protect correlative rights, and
obtain optimum recovery. Gas handling facilities will be expanded and
the production rate will be doubled. Perhaps over half of the we11s will
be deepened; gas/oiT ratios will be controlled; and produced gas wi11 be
reinjected into the gas cap in order to make the gravity drainage mechanism
fully effective.
The consultant firm estimates that total remaining reserves in the principal
reservoir are 1,370 MMBbls. However, 545 MMBbls of these reserves are
believed contingent upon the unitized operations outlined above and have
thus been placed in the indicated secondary reserves rather than in the
proved reserves category. The proved ultimate recovery at Yates Grayburg­
San Andres is thus indicated to be 34 percent of oil originally in place.
The additional indicated secondary reserves should increase this recovery
efficiency factor to 47 percent. These amounts do not include the escape
oil which was about 2 percent of the oil originally present.
The Yates Field is one of the three oil fields in the United States which
has significant reserve productive capacity. An inability to resolve
equity problems concerning mineral rights, in the past, has prevented the
utilization of this incremental productive capacity. The allowed producing
rate of the field is currently 50,000 barrels daily. Following unitization
of the field toward the end of 1975, the production rate probably will
be increased to 100,000 barrels daily. The efficiency of the producing
mechanism will be closely observed at this increased rate, particularly
with regard to water and gas coning, gas/oil ratio control, and the extent
of cont"inued gravity segregation. Then, quite possibly, even higher
production rates will be considered. There is really no question about the
field's ability to produce at a 200,000 barrel daily rate or even more.
The problem now is the inability to determine, in the absence of testing,
just how high the rate can be raised without significant loss in ultimate
recovery.
The FEA report on the Yates Field was prepared by James A. Lewis Engineering,
under Contract No. CO-05-50186-00.
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