Pumping oil well at the East Boundary Butte field in northeastern Arizona. Photo by Steve Rauzi, May 1993.

Drilling Permits 2009
Nine drilling permits were issued, seven wells were drilled, and one gas well was plugged in Arizona in 2009. RIM Southwest Corporation plugged the 2 Navajo-138 well at the Dry Mesa field in northeastern Arizona. Texas Pacific Coal and Oil completed the 2 Navajo-138 well in May 1960. It produced 12,200 barrels of oil and 1.1 billion cubic ft of natural gas before it was plugged in 2009.

CO2 Sequestration

APS (Arizona Public Service) drilled a well near the Cholla power plant at Joseph City to test the potential of sequestering CO2 in deep saline aquifers. APS plugged the Cholla well because it did not encounter permeable and porous formations near the power plant. Additional information about the Cholla well and potential for carbon sequestration in Arizona can be found at www.azogcc.az.gov .

Geothermal Resources

Willcox Greenhouse LLC drilled a geothermal well to a total depth of 4000 ft at its greenhouse north of Willcox. Willcox Greenhouse will use hot water from the well to help heat its greenhouses. The February 11, 2010 Land Letter reports that Utah-based GreenFire Energy is targeting CO2-based geothermal energy about a half-mile beneath the Arizona-New Mexico border near the town of Springerville, Ariz. Click here for more information.

Potash Exploration
Southwest Exploration and Passport Metals drilled four stratigraphic wells at its potash project southeast of Holbrook. Southwest and Passport Metals plan to drill more wells in 2010 to further delineate the extent and grade of the potash deposit.

Oil and Gas Leases 2009
There were 1.319 million acres leased for oil and gas in Arizona at yearend 2009, down from the 1.376 million acres at yearend 2008.

Oil and Gas Production
Oil production totaled 46,193 barrels from 16 producing wells in 2009, down from 51,575 barrels from 21 wells in 2008. Gas production totaled 712 million cubic feet from 6 producing gas wells, up from 523 million cubic feet from 6 wells in 2008. No CO2 was produced in 2009. There was one active disposal well and 18 shut-in wells at yearend including 14 oil, 1 gas, 1 CO2, and 2 disposal wells.

Oil and Gas Conservation Commission
The Oil and Gas Conservation Commission held four regular meetings in 2009. Governor Jan Brewer appointed Robert L. Wagner to the AZOGCC to replace outgoing Commissioner Robert L. Jones. Mr. Wagner's appointment runs until January 2013. Governor Brewer reappointed Commissioner Michele P. Negley. Ms. Negley's reappointment runs until January 2014. Governor Brewer appointed Frank Thorwald to replace Commissioner Katosha Nakai. Mr. Thorwald's appointment runs until January 2015. Links to rules and statutes and other information about oil and gas in Arizona may be found on the Commission’s web page at www.azogcc.az.gov.

Steven L. Rauzi, 03/11/10



Steven L. Rauzi
Oil & Gas Administrator

Arizona Oil and Gas Conservation Commission
Tucson, AZ

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