USING CABLE SUSPENDED SUBMERSIBLE PUMPS TO REDUCE PRODUCTION COSTS TO INCREASE ULTIMATE RECOVERY IN THE RED MOUNTAIN FIELD OF THE SAN JUAN BASIN REGION

This report discusses: (1) being able to resume marginal oil production operations in the Red Mountain Oil Field, located in McKinley County, New Mexico by installing a cable suspended electric submersible pumping system (HDESP); (2) determining if this system can reduce life costs making it a more cost effective production system for similar oil fields within the region, and if warranted, drill additional wells to improve the economics. In April 2003, a cooperative 50% cost share agreement between Enerdyne and the DOE was executed to investigate the feasibility of using cable suspended electric submersible pumps to reduce the life costs and increase the ultimate oil recovery of the Red Mountain Oil Field, located on the Chaco Slope of the San Juan Basin, New Mexico. The field was discovered in 1934 and has produced approximately 55,650 cubic meters (m{sup 3}), (350,000 barrels, 42 gallons) of oil. Prior to April 2003, the field was producing only a few cubic meters of oil each month; however, the reservoir characteristics suggest that the field retains ample oil to be economic. This field is unique, in that, the oil accumulations, above fresh water, occur at depths from 88-305 meters, (290 feet to 1000 feet), and serves as a relatively good test area for this experiment