PETRO A LEWIS CORPORATION Eastern Region

Four Greenspoint Plaza 16945 Northchase Drive P.O. Box 90500 Houston, Texas 77290 713/874-8000

February 3, 1987

Division Director New Mexico O i l Conservation Commission State Land Office Building Santa Fe, New Mexico 87501

Re: Request f o r Down-Hole Commingling Permit Rule 303-C

Dear Sir:

(a) Name and address of the operator:

Petro-Lewis Corporation P. 0. Box 90500 Houston, TX 77290

(b) Lease name, wel l number, well location:

Warlick "A" Well #2 1980' FSL, 1980' FEL, Section 19, T-21-S, R-37-E Lea County, New Mexico

(c) Name of pools w e l l i s completed i n and the order number which author­ized the completion:

Penrose Skelly Paddock Blinebry Drinkard

3756-3805 5162-5174 5654-5925 6599-6643

Quadruple completion i n Drinkard, Paddock, Blinebry and Penrose Skelly. Order No. R2300.

TH023.18

February 3, 1987 Page 2

(d) Plat of the area showing the acreage dedicated to the wel l and the ownership of a l l o f f s e t t i n g leases.

See Attachment #1.

(e) A current (within 30 days) 24 hour productivity test on Division Form C-116 showing the amount of o i l , gas and water produced from each zone.

See Attachment #2.

( f ) A production decline curve from each zone fo r a least a period of one year.

See Attachment #3.

(g) Estimated bottom-hole pressure f o r each a r t i f i c i a l l y l i f t e d zone:

(h) A description of the f l u i d characteristics of each zone showing that the f l u i d s w i l l not be incompatible i n the wellbore.

The Warlick A #2 w i l l continue to be operated as a quadruple comple­t i o n ; therefore, Petro-Lewis does not believe that the f l u i d s w i l l be commingled downhole. However, i f a s i t u a t i o n occurred where they were commingled downhole, i t i s believed that the f l u i d s are compatible as evidenced by the Petro-Lewis State "DC" lease (S/2 NW/4 Section 19, T-21-S, R-37-E, Lea County, New Mexico. Original commingling Order PC-435 by Amerada Hess Corporation, March 6, 1972, for Blinebry, Drinkard, Paddock and Penrose Shelly). Also, the produced f l u i d s are presently being commingled on the surface.

( i ) A computation showing that the value of the commingled production w i l l not be less than the sum of the value of the values of the individual

The value of each individual stream and the t o t a l value w i l l be the same because we do not plan to change our present method of operation.

( j ) A statement that the ownerships of the zones to be commingled are common including the working i n t e r e s t , royalty and overriding royalty.

The ownership of o i l and gas produced from a l l zones to be commingled i s common as to royalty, overriding royalty and working interests.

Estimated bottom-hole pressures:

Paddock Penrose Skelly

45 psig 45 psig

streams.

TH023.18

February 3, 1987 Page 3

(k) A statement that a l l offset operators and, i n the case of a wel l on Federal land, the United States Geological Survey, have been n o t i f i e d i n w r i t i n g of the proposed commingling.

Offset operators have been n o t i f i e d , including the United States Geological Survey, see Attachment #4.

Sincerely,

Terry Holzwarth Senior Petroleum Engineer

TH/fs

Attachments

TH023.18

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RE: APPLICATION FOR DOWNHOLE CXDMMINGliING

The acreage to be allocated production from the Petro-Lewis #2 Warlick 'A' i s the NW SE% of Section 19, T21S-R37E, N.M.P.M., Lea County, New Mexico.

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ATTACHMENT #3

ATTACHMENT #3

Attachment #4

Offset Operators Petro-Lewis Warlick 'A' Lease N 1/2 SE 1/4 Section 19, T219-R37E Lea Co., NM

1) Chevron USA, Inc. P. 0. Box 670 Hobbs, NM 88240 Attention: Mr. J. C. Prindle

Campbell & Hedrick c/o 0. F. Hedrick Estate 1207 Community Lane Midland, TX 79701

3) Sun Exploration and Production P. 0. Box 2881 Dallas, TX 75221-2880 Attention: Ms. Darlynne L. Hayden

4) Amoco Production Company P. 0. Box 3092 Houston, TX 77253 Attention: Mr. D. L. Hood

5) U. S. Department of I n t e r i o r Bureau of Land Management Caller Service 4104 Farmington, N. M. 87499

2) Campbell & Hedrick and c/o Campbell Estate Partnership 2003 Country Club Midland, TX 79701

r

Four Greenspoint Plaza 16945 Northchase Drive P.O. Box 90500 PETROL LEWIS CORPORATION

Eastern Region Houston, Texas 77290 713/874-8000

February 3, 1987

Chevron USA, Inc. P.O. Box 670 Hobbs, NM §3240

Re: Request for Down-hole Commingling Permit Rule 303C

Gentlemen:

Attached for your review is a commingling request by Petro-Lewis Corporation for the Warlick "A" #2 located as described in the request. Your waiver of objection to this request is r e s p e c t f u l l y solicited.

Please indicate your decision in the space below and return one copy to the undersigned and one copy to the New Mexico Oil Conservation Commission. Retain one copy for your f i l e s .

Thank you for your cooperation.

S incerely,

PETRO-LEWIS CORPORATION

Nelda Parker S t a f f Analyst

I do ( ) do not object to commingling request for this well.

Company CZAiPj^r^jn

r

Four Greenspoint Plaza 16945 Northchase Drive P.O. Box 90500 Houston, Texas 77290 713/874-8000

•pprftirnn nrpri? FEB 1 8 1987 ;!

February 3, 1987 J QT3T^l3irtJT5 :d soimnvEssEKN sissies.

Sun Exploration and Production P. 0. Box 2881 Dallas, TX 75221-2880

Attention: Ms. Darlynne L. Hayden

Re: Request for Down-hole Commingling Permit Rule 303C

Gentlemen:

Attached for your review i s a commingling request by Petro-Lewis Corporation for the Warlick "A" #2 located as described i n the request. Your waiver of objection to t h i s request i s respectfully s o l i c i t e d .

Please indicate your decision i n the space below and return one copy to the undersigned and one copy to the New Mexico O i l Conservation Commission. Retain one copy for your f i l e s .

Thank you for your cooperation.

Sincerely,

Nelda Parker Staff Analyst

I do ( ) do not { J t T j object to commingling request for t h i s well.

PETRO-LEWIS CORPORATION

Date

Signed

Company

Amoco Production Company Houston Region 501 WestLake Park Boulevard Post Office Box 3092 Houston, Texas 77253

R. E. Ogden Regional Engineering Manager

March 9, 1987

File: JCA-986.5NM-1921

Re: Downhole Commingling Warlick "A" Well No. 2 Lea County, New Mexico

New Mexico Oil Conservation Division Energy and Minerals Department P. 0. Box 2088 Santa Fe, New Mexico 87501

Gentlemen:

Amoco Production Company has been advised of Petro-Lewis Corporations's request to commingle production downhole in their Warlick "A" Well No. 2 located 1980' FSL and 1980' FEL, Section 19, T-21-S, R-37-E, Lea County, New Mexico.

This is to advise that Amoco has no objection to Petro-Lewis1

application to commingle production downhole in the subject well.

Yours very truly,

MLC/rcr/7.041

cc: Petro-Lewis Corporation P. 0. Box 90500 Houston, Texas 77290

PETRO11 LEWIS CORPORATION Eastern Region

Four Greenspoint Plaza 16945 Northchase Drive P.O. Box 90500 Houston, Texas 77290 713/874-8000

- .T\

March 10, 1987

Campbell & Hedrick c/o 0. F. Hedrick 1207 Community Lane Midland, TX 79701

*0 Re: Request for Down-hole Commingling Permit Rule 303C

Gentlemen:

Attached for your review i s a commingling request by Petro-Lewis Corporation for the Warlick "A" #2 located as described i n the request. Your waiver of objection to t h i s request i s respectfully s o l i c i t e d .

Please indicate your decision i n the space below and return one copy to the undersigned and one copy to the New Mexico O i l Conservation Commission. Retain one copy for your f i l e s .

Thank you for your cooperation.

Sincerely,

Nelda Parker Staff Analyst

I do ( ) do not ( s ^ j object to commingling request for t h i s well.

Signed

Date

Company