Mustang Creek Operating (Mustang Creek), a subsidiary of NexGen Oil and Gas, has announced the results of a deep Paleozoic exploratory test drilled by the firm earlier in 2014 in the southern D-J Basin. Located roughly 30 miles east of Colorado Springs, Colo., the Graham #1-13, nw-sw 1-13s-60w, El Paso County, reached the Precambrian basement rock at a total depth of 10,954’. Targeting Paleozoic formations, the operator reported encountering high-quality reservoir rocks with shows of oil as well as thermally mature Pennsylvanian-aged source rocks. Mustang Creek has compared their findings to many of the same pools that are actively producing oil approximately 30 miles northeast of the Graham #1-13, such as Great Plains and Arikaree Creek Fields, both of which produce from the Marmaton, Atoka, Cherokee, and Spergen. The company has temporarily abandoned the Graham #1-13 while more evaluations are being made on data collected at the drillsite.
Mustang Creek has stated, however, that they are encouraged by results of the Graham #1-13 and are committed to actively exploring their position in southeast Colorado where the firm holds approximately 200,000 acres in the overall area of 11s–16s, 58w–61w. Location of the Graham #1-13 was the result of a 3D seismic program shot by Mustang Creek in 2013 in the overall area of 12s–13s, 59w–60w. The company has made plans to conduct another 3D seismic shoot by the end of 2014, focusing on the northeast corner of their acreage position.
Roughly 2 miles northeast of their Graham #1-13 is Mustang Creek’s Prescott Ranches #32-34, sw-se 32-12s-59w. Located in Elbert County, Colo., this venture is permitted to reach a total depth of 11,000’ and test the vertical Atoka, Cherokee, Mississippian, and Niobrara. Mustang Creek reportedly will wait until all the data collected from the Graham #1-13 has been scrutinized before deciding whether to drill the Prescott Ranches #32-34.
The nearest activity to Mustang Creek’s exploratory test is located approximately a mile to the southwest at Milinda Oil’s State of Colorado #1, se-nw 11-13s-60w. Drilled in 1980, this attempt tapped the Dakota at 5,942’ before being abandoned with no tests performed. Log tops showed the Niobrara at 5,294’, Codell at 5,334’, D Sand at 5,772’, and the J Sand at 5,814’, measured from a Kelly bushing elevation of 6,109’.
Some 4 miles northwest of Mustang Creek’s Graham #1-13 is Chancellor Exploration’s Martin #1, sw-sw 21-12s-60w. This prospect was drilled in 1969 and reached the J Sand at 6,480’. Cores cut in the J Sand between 6,305’ and 6,355’ revealed no reports of hydrocarbons, and the attempt was abandoned.
Roughly 4.8 miles north of Mustang Creek’s wildcat is a failure completed in 1954 by New Drilling Company. The Jarrett #1, se-se 12-12s-60w, bottomed in the Dakota at 6,277’. Cores taken in the Dakota interval at 6,029’–6,160’ indicated a wet reservoir, and the well was abandoned.
The nearest established production to Mustang Creek’s Graham #1-13 is more than 16 miles to the northeast at Stanley Cup Field. Discovered by Ritchie Exploration in 1996, this Dakota/J-Sand pool yielded 141.3 k bo through March 2014.
The nearest Paleozoic production to Mustang Creek’s new drillsite is roughly 25 miles to the east at Nighthawk Production’s Knoss #6-21, se-nw 21-12s-56w. As reported in the RMOJ, this prospect produced 22 bo and 242 bw during a 10-hr swab test, signifying a calculated rate of 50 bopd and 480 bwpd. Production came from perforations in the Cherokee between 7,320’ and 7,412’. Between December 2012 and March 2014, the Knoss #6-21 produced 4.2 k bo, 322 mcfg, and 56.1 k bw.
As previously mentioned, roughly 28 miles northeast of Mustang Creek’s activity is another Paleozoic reservoir. Discovered in 2007, through March 2013 Great Plains Field has yielded 1.2 mmbo and 1.1 bcfg from the Cherokee, Marmaton, Morrow, and Pawnee at depths near 7,000’.
"X Marks The Spot"