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Energy industries

CMS Energy Corporation Announces Significant Oil and Gas Discoveries

Strategic Insights

— 2 min read

CMS Energy Corporation's oil and gas exploration and production unit, CMS Oil and Gas Company, has made two substantial new discoveries in Texas, including a well that has flowed at a rate of 7.5 million cubic feet per day of gas. The discoveries, which are part of the company's efforts to expand its operations in the region, have the potential to significantly boost CMS Energy's production and reserves. The company is positioning itself for growth, with plans to begin production from the new wells and initiate a development program to explore the surrounding area.

Key Takeaways:

  • The Hangar 7401H exploratory well in Upton County, Texas, flowed at a rate of 7.5 million cubic feet per day of gas, with a British thermal unit (BTU) content of approximately 1,250 BTU per standard cubic foot (scf).
  • The well was drilled vertically to a depth of approximately 12,037 feet and horizontally a distance of approximately 4,000 feet.
  • CMS Oil and Gas Company holds a 100 percent working interest in the well, subject to a 25 percent reversionary interest, and has rights to explore approximately 15,000 acres in the surrounding area.
  • The Lela "A" #2P exploratory well in Midland County, Texas, tested at a rate of over 750 barrels of oil per day and 2.7 million cubic feet per day of 1,250 BTU/scf gas.
  • The well was drilled vertically to a depth of approximately 10,713 feet and horizontally a distance of approximately 5,684 feet in the Pennsylvanian formation.
  • CMS Oil and Gas Company owns leasehold rights covering approximately 12,000 acres overlying both formations in the Midland area and holds a 90 percent working interest in the Lela "A" #2P well with a 10 percent interest held by Texaco Exploration and Production, Inc.
  • At year-end 1999, CMS Energy Corporation had proven reserves of 248 million net equivalent barrels.
  • CMS Energy Corporation has annual sales of more than $6 billion and assets of about $15 billion throughout the U.S. and around the world.

Statistics:

  • 7.5 million cubic feet per day: The rate at which the Hangar 7401H exploratory well flowed in gas.
  • 1,000 psi: The flowing casing pressure of the Hangar 7401H well.
  • 1,250 BTU/scf: The British thermal unit (BTU) content of the gas.
  • 12,037 feet: The depth at which the Hangar 7401H well was drilled vertically.
  • 4,000 feet: The distance over which the Hangar 7401H well was drilled horizontally.
  • 750 barrels per day: The rate at which the Lela "A" #2P exploratory well tested in oil.
  • 2.7 million cubic feet per day: The rate at which the Lela "A" #2P exploratory well tested in gas.
  • 10,713 feet: The depth at which the Lela "A" #2P well was drilled vertically.
  • 5,684 feet: The distance over which the Lela "A" #2P well was drilled horizontally.
  • 248 million net equivalent barrels: The proven reserves of CMS Energy Corporation at year-end 1999.
  • $6 billion: The annual sales of CMS Energy Corporation.
  • $15 billion: The assets of CMS Energy Corporation.
  • 90%: The percentage of working interest held by CMS Oil and Gas Company in the Lela "A" #2P well.
  • 10%: The percentage of working interest held by Texaco Exploration and Production, Inc. in the Lela "A" #2P well.

Sources:

  • CMS Energy Corporation. (1999). CMS Energy Corporation's website. Retrieved from www.cmsenergy.com.

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