DALLAS--(BUSINESS WIRE)--Chestnut Exploration & Production, Inc., a Dallas-based independent oil and natural gas company, announced the successful acquisition of the Willamar West Unit in Willacy County, Texas, which increases the company’s oil production by 91 percent. The 1,720 gross acre unit was acquired by Chestnut Exploration & Production, Inc. with the Chestnut Production Fund IV for $13.1 million. The acquisition of the field, which produces from the Gulf Coast Basin, includes 37 wellbores, of which there are 17 producers, 14 shut-ins and six injection wells.
Last year the field produced 34,621 barrels of oil and 45,728 mcf of natural gas. As of February 2014, the field had a gross production of 196 barrels of oil per day and 310 mcf of natural gas. The Willamar West Unit is located in the Mulatos Pasture of the HP El Sauz Ranch, a now independently operated ranch that was once the southernmost tip of the historic King Ranch. The wells acquired in the Willamar acreage are currently producing from the Frio and Miocene sands with multiple productive zones from 5,000 to 8,000 feet.
“We could not be more pleased with this acquisition or the opportunity to operate this oil field on the historic HP El Sauz Ranch section of the original King Ranch acreage,” said Mark Plummer, founder and chief executive officer of Chestnut Exploration & Production, Inc. “In addition to being a classic oil field in a historic area, we see many opportunities to increase production and develop additional reserves. This acquisition enables us to continue developing our assets while expanding into new areas, and we are very excited about this phase in our growth.”
The Frio is a quality sand with high porosity and permeability, making the Willamar Field a phenomenal candidate for conventional reservoir exploration. The field has numerous upside opportunities identified as recompletions and proven undeveloped reserves (PUDs). Discovered in 1941, the field reached peak production in the 1940s of 40,000 barrels of oil per day. Today, Exxon Mobil Corp. remains a non-operated working interest partner in the field.
About Chestnut Exploration & Production, Inc.
Chestnut Exploration & Production, Inc. is a licensed and bonded oil and natural gas operating and development company with operations in Texas, Louisiana, and New Mexico. Chestnut’s mission is to use advanced science and geological techniques to maximize the value of its projects. Chestnut’s experts have decades of experience and are trained in all aspects of the energy business.