Natural Gas Storage Field For Sale in Southwest Texas

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Additional Info

State/ProvinceTexas
CountryUnited States
Quantity1
Allow DealsYes
I Want ToSell
Telephone Number2565060176

Notes

Call 256-506-0176 for a site visit
Still Large Potential Here , Over 990,000 bbls of Oil Pulled out of the original wells in a 10 year period
Current gas inventory is 1.56 BCF

Natural Gas Storage Field For Sale in Southwest Texas

Pecan Station was originally discovered in 1954 as an oilfield. Lone Star Gas Company purchased the property and its rights in 1963 . Lone Star converted it to a natural gas storage field . Atmos operated the field until 2006 at which time it was sold to Elco Oil and Gas for the sole purpose of oil production. GSEC purchased the Pecan Station (Canyon Line) Storage field in October 2008.

Plans to make the facility operational include re mediating and reworking the existing (16 ) wells . This meant plugging and abandoning some of the wells and drilling three new horizontal wells.

LOCATION
 The field is located in south‐central Tom Green county about 10 miles south of San Angelo, Texas.
 The field covers portions of Section 4,5,6,and 7 Block 25, H. & T. C. R. Survey for a total acreage of 2387.4

FIELD DISCOVERY
 Discovered in 1953
 The first oil well, J. W. Johnson #1 by C.L. MacMahon, Inc. in the Canyon Line horizon at a depth of 4,506
feet.
 Estimated flowing potential of 112.84 BOPD.
 The field was then developed on 40 acres drilling units with a total of 16 pumping wells .

The original operating permit was issued in 1964.In 2009 the original permit was amended to for the installation of the (6) proposed horizontal wells (4) proposed vertical wells and the remediation and plugging recommendations for the original (16) wells.The amended permit was approved and issued January 25, 2010.

In 2010 FCGS began the remediation process. When completed nine wells were plugged and
abandoned, four wells reworked to injection/withdraw capabilities, and three wells were
converted to monitor wells .

In 2011 the facility construction began, this included setting and installing all new and up‐todate
equipment and processes. New well lines were installed, compressor packages, process
equipment that includes equipment to meet current environmental regulations. This also
included a new 8” line form the Atmos connection into the facility.

General Asset Listing
Asset Quanity
800 HP Compressor Package w/ Ariel Compressors & WEG Motors 2 pkg.
Includes ‐(2) Elec. Driven Compressors, (2) Coolers, parts, termination box, start‐up
Dehydration Package ‐750,000BTU Unit w/ Burner Management System & electric pumps 1 pkg.
Includes ‐ V‐715, BD‐750, DB‐700 and related equipment
Hi‐ Pressure Separators 2000# & 1000# MAWP 1 pkg.
V‐300, V‐500, V‐600, V‐650, V‐350, V‐150 and related equipment
Low Pressure Separators ‐ 125# MAWP ‐ T680 1 pkg.
Shell & Tube Exchanger w/HE‐400, RB‐420, Line Heater 1 pkg.
4″ Lo‐Pressure Launcher/Receiver
10″ SCH 60 Senior Mtr Tube w/ Meter / 600# ansi / G4 Totalflow 1
8″ SCH 80 Senior Mtr Tube w/ Meter / 600# ansi / G4 Totalflow 1
3″ Dual Sr. Mtr run skid w/ Meters / 900# ansi / G4 Totalflow 4
5 Ton Overhead Crane ‐ Dearborn ‐ air hoist 1
VFD’s ‐ Allen Bradley PowerFlex 7000 800 hp 2
MCC ‐ Allen Bradley Various HP Various
Alarm & Beacon/ESD Operator
MVS‐1 1
UPS 1
LVS 1
Air Compressor Pkg. ‐ Sullair 1809e / 99.3 cfm @ 125# w/ driers 1
Compressor Building ‐ Rhino Building ‐ 50’x140’x20′ w/ (5) rollup doors & (6) walk doors 1
Control Valves ‐ Masoneilan 4
Pressures Transmitters ‐ Foxboro Various
Level Transmitters ‐ Vega 5
Regulators ‐ Masoneilan Various
Controllers ‐ Fozboro 3
Back Pressure Regulators ‐ Masoneilan Various
Pressure/Vacuum Breaker 3
Groth Pressure Relief 2
Control Valves ‐ Tanks Farm Various
Flare Stack ‐ NOA 330,000 scf @ 25# / 25′ 1
Generator ‐ Koler Genset 40kw 1
Tanks ‐ Steel ‐ 12’x25′ 500 bbl 2
Tanks ‐ FRP ‐ 12’x25′ 500 bbl 4
Roots Fuel Meters / 15C175 2
GDS Gas Detectors / Flame Sensor unit 1
Safety Valves
Rupture disc
TotalFlow G4 Series for V350 1
Enardo Vent Valves 2
Mercoid Pressure Switch 7
Cathodics Ground Beds 2
RTO ‐ Maxium / 7,500 scfm / destruction efficiency 98% 1

In May of 2012 FCGS began injecting to date we have injected a total of 497,506 mcf.
In 2013 we had a reservoir engineering study done in to complete the proposed Horizontal
wells and provide an assessment of the facility.

The assessment indicated the following:
 The storage is tight acting as a sealed container with no gas leakage.
 Atmos had an inventory discrepancy causing an additional increase of 149 MMcf gains
that was previously unaccounted.
 The current storage capacity is as below :

BASE LINE Relationship
(From 1991-2000 Data)
Storage Relationship : BHP / z/Bcf 831.2 psi/Bcf
Bcf / BHP/z 0.00120 Bcf/psi
Bcf / BHP/z 1.203 MMcf/psi
Native Volume : 0 112.7 0.150 Bcf
Extraneous Cushion Volume : 112.7 644.6 0.750 Bcf
Extaneous Working Volume : 644.6 1666.9 1.581 Bcf
Total Gas in Storage : 2.481 Bcf
BHP z BHP/z WHP Volume

Native Gas 123.5 0.9904 124.7 112.7 0.150
Native and Cushion Gas 709.8 0.9488 748.1 644.6 0.900
Total Gas in Place 1,850.0 0.8970 2,062.4 1,666.9 2.481

RESERVOIR GEOLOGY DESCRIPTION
 The producing zone in the Palo Pinto Lime of the Canyon formation which occurs at an
average depth of 4,500 feet.
 The formation is a fractured, lightly dolomitic, and vugular lime.
 The structure is an elongated anticlinal trap trending northwest‐southeast.
 The closure of the Canyon producing zone is traversed by a fault, the downthrown side
of which forms a synclinal basin which shows a slight southeastward tilting.
 Drilling history in this area gives evidence that a graben‐like basis existed along the
southwest flank of the anticline during the period of erosion following uplift.

Other highlights :

1. $27,000,000.00 million put into rehab in 2010-11 and most of the receipts in hand .

2. Current gas inventory is 1.56 BCF

3. 3 horizontal wells permitted .

4. 2300 acres of potential oil production . The producing formation is the Canyon Lime; Palo Pinto limestone section.

5. 145 Miles from Mexican Border .

6. Close to the Permian Global Access Pipeline , which will be completed in 2022 .

7. Every well has been reworked .  Cement  squeezed to surface.

8. 11 Miles to nearest Rail Line

9.  112 Miles away from Midland , 90 Miles from Abilene , 200 Miles from San Anontio

 

Other uses could be Gas Storage for on site power generation , Solar Power Generation , Frac Sand Operations .

 

Call or Message from the Contact Seller Form , for more information ,details , or questions

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