Production - Domestic - Oil and Gas Development in New Mexico in 1943

New Mexico produced 38,882,342 bbl. of oil in 1943, and regained seventh place among the oil-producing states. This production was an increase of 6,968,526 bbl., or 21.8 per cent, over the figure for 1942. The maximum per-well allowable on Jan. I, 1943, was 38 bbl. daily and at the end of the year this figure had been increased to 48 bbl. Allocations as set by the New Mexico Oil Conservation Commission closely followed recommendations by the Petroleum Administrator for War and the average daily pipe-line runs were 106,476 bbl., being within 2.2 per cent of these allocations. Production for Lea County was 33,043,925 bbl.; Eddy County, 5,405,-967 bbl.; northwestern New Mexico, 432,070 bbl., and Chaves County, 380 barrels. Drilling activity for New Mexico in 1943 was only 75 per cent of that in 1942, with 255 completions. Of these completions 180 were oil wells, 10 gas wells and 65 dry holes. The ratio of dry holes to producers, more than I to 3, was the greatest in recent years. Of these dry holes, 46 were drilled within the boundaries of proven . areas while 19 were wildcats. Wildcat drilling during 1943 was responsible for the discovery of four new oil fields and one new gas field, as well as three extensions to existing proration areas. At the close of the year the New Mexico Oil Conservation Commission had designated 64 areas as proven for oil and/or gas. The Monument area was again New Mexico's largest producing oil field, with an annual production of 7,228,855 bbl. Next was Eunice, with 6,461,044 bbl., followed by Vacuum with 4,946,110 bbl. IIobbs, ranking fourth, with 3,799,114 bbl., was the leader in total recovery with an accumulated production of 104,180,53I bbl., or more than 10,000 bbl. per acre to date. Drilling activity in Lea County accounted for completion of 67 oil wells, 2 gas wells and 24 dry holes. One of these oil wells was the discovery well of a new area and three extended proven areas. The most active drilling campaign in the county was again in the Maljamar area, where 18 oil wells were completed. The Maljamar Cooperative Repressuring Agreement affected 141 producing wells, and operations were a decided success, more than 85 per cent of the gas produced being returned to formation. The new oil field for Lea County was designated as the San Simon area although boundaries have not been established to date. Discovery well for this area was the Skelly Oil Company's State U. No. I, in theNE. NE. K of sec. 5, T.22 S.,R.ssE. This well was drilled to a total depth of 4183 ft. and plugged back to 4138 ft. after encountering bottom-hole water. Initial production was 124 bbl. per day on the pump. This oil is 37.4' gravity and has a sulphur content of I per cent. Productian is from Yates sand of Permian age. The Lynn area of southern Lea cbunty was extended 145 miles to the northwest