Bayside recently renewed its leases in the Muscadine Field in Tyler County, Texas in preparation for rejuvenating this field, first discovered in the 1950s. This field has three wells on 230 acres of land and has produced 400,000 barrels of oil and 350 million cubic feet of natural gas. Bayside plans to drill a new well, to a depth of 8,175-8,500 feet. This well will replace the older well, called the No. 2 well, which will be reserved for future use as a saltwater disposal well. The other two wells, Nos. 3 and 4, are on lands surfaces controlled by the National Park Service (the NPS). The company will file a Plan of Operation with the NPS and, upon approval, Bayside will commence reworking wells 3 and 4. The company will also evaluate the Muscadine Field for future additional drilling. Bayside specializes in reworking and recompleting “marginal” oil and gas wells.
Gordon Johnson, CEO of Bayside, stated, “This is an excellent opportunity for Bayside to bring increased production from this field to the market.” Bayside owns 100 percent working interest in the Muscadine Field and a 70 percent net revenue interest for this lease.
This past week, Bayside also acquired an oil and gas lease covering the Moody and West wells in Duval County, Texas. Acting through a subsidiary, Bayside acquired 181 acres and seven existing wells on the property. The previous owner of these wells passed away and the wells have been unused since. Bayside plans to rework or recomplete all of these wells and possibly drill new wells. The wells have previously produced oil from the Jackson Series sand, at depths between 2,200 and 2,400 feet.
This new lease is adjacent to other Bayside properties in Duval County, according to Mr. Johnson, and fits in nicely with the company’s specialized program in reworking older wells. He said that work on these wells will start this summer.
The recent activity by companies like Bayside show once again how important the oil and gas industry is to Texas’s healthy and growing economy. Like Apache Corp breathing life into an older Texas oil field (see this post here), this news from Bayside shows how old Texas oil wells can continue to be productive. With the energy market booming and technology improving, there are even more options available to increase the production in older, mature, and even declining, wells. Along with Bayside and Apache, Exxon and Chevron have also paid attention to more mature oil wells. It goes without saying that reworking the older wells is good stewardship of our resources, but it is also is good for these local economies-creating more stable, well-paying American jobs.
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