Houston-based Evolution Petroleum and Pacific Energy Development Corp. said last week they will jointly develop PEDEVCO’s Chaveroo oilfield in the northwest shelf of southeastern New Mexico in Permian Basin. Chaveroo, conventional oil-bearing San Andres field in Chaves and Roosevelt counties, originally was developed with vertical wells on 40-acre spacing. PEDEVCO has drilled 10 horizontal infill wells on 20-acre spacing that yields most of the field’s current production.
The two companies said Sept. 13 there is “potential to unlock significant value from the Chaveroo field (16,000 acres) which has an estimated original oil in place of over 700 million barrels with less than five percent recovered to date.”
Kelly Loyd, president and CEO of Evolution, said, “We are excited to announce our strategic partnership and entry into the Permian Basin with PEDEVCO… The wells drilled and infrastructure installed by PEDEVCO have helped prepare it for full development. Executing on this strategic partnership allows us to add a crucial component to our asset base.” J. Douglas Schick, president of PEDEVCO, added, “We believe our work over the past five years has de-risked infill horizontal development of this asset and provided valuable data to continue to enhance results in the field.”