Drilling for potash in the Holbrook basin. Photo courtesy of Clive R.G. Bailey, Edge Consulting.
oil & gas in arizona Summer 2009

(Update of Oil and Gas Activity in AZ through August 2009)

Drilling Permits 2009

Nine drilling permits were issued and four wells were drilled in Arizona through August 2009. Ridgeway Arizona Oil Corporation drilled one well at its ongoing CO2 project between St Johns and Springerville.

CO2 Sequestration

APS (Arizona Public Service) drilled its Cholla CO2 test well to a total depth of 3853 ft, ending in granite bedrock in late August. The well is situated near the Cholla power plant at Joseph City. The Cholla well is designed to test the potential of sequestering CO2 in deep saline aquifers of Devonian-age. The Cholla test is being drilled as part of the West Coast Carbon Sequestration Partnership (WESTCARB).

WESTCARB is posting the progress of the Cholla well on it’s website. Additional information about the potential for carbon sequestration in Arizona can be found at www.azogcc.az.gov.

Geothermal Exploration

Willcox Greenhouse LLC drilled a geothermal well to a total depth of 4000 ft at its greenhouse north of Willcox. Willcox Greenhouse does not expect to encounter steam or water hot enough to generate electric power but does anticipate water that is hot enough to help heat its greenhouses.

Potash Exploration

Southwest Exploration drilled four of five stratigraphic wells at its potash project southeast of Holbrook. Southwest Exploration hopes to confirm the presence of commercially recoverable potash deposits.

Oil and Gas Leases 2009

There were 1.350 million acres leased for oil and gas in Arizona at midyear 2009, down slightly from the 1.360 million acres at midyear 2008. Oil and gas leases on State Trust land totaled 992,000 acres in midyear 2009, down from 1.001 million acres in midyear 2008. Federal land leased in midyear 2009 totaled 358,000 acres, down slightly from 359,000 acres in midyear 2008.

Oil and Gas Conservation Commission

The Oil and Gas Conservation Commission held three regular meetings through August 2009. The Commission’s next meeting is scheduled for October 16, 2009 in Phoenix. Links to rules and statutes and other information about oil and gas in Arizona including production data and recently issued permits to drill may be found on the Commission’s web page at www.azogcc.az.gov.




Steven L. Rauzi
Oil & Gas Administrator

Arizona Geological Survey
Tucson, AZ

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