Drill rig operating in the Holbrook Basin.

oil & gas in arizona Summer 2009
STEVEN L. RAUZI, ARIZONA GEOLOGICAL SURVEY

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

Drilling Permits 2009
Nine drilling permits were issued and seven wells were drilled in Arizona through December 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 near the Cholla power plant at Joseph City in late August 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. The Cholla test was drilled as part of the West Coast Carbon Sequestration Partnership (WESTCARB). WESTCARB has posted the progress of the Cholla well on it’s website at westcarb.org. Additional information about the potential for carbon sequestration in Arizona can be found at 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, Cochise County. The well encountered water that is hot enough to help heat its greenhouses.

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

Oil and Gas Leases 2009
There were 1.350 million acres leased for oil and gas in Arizona at midyear 2009. The number of acres leased had dropped slightly to 1.3 million acres in mid December 2009.

Oil and Gas Conservation Commission
The Oil and Gas Conservation Commission held four regular meetings through December 2009. The Commission’s next meeting is scheduled for January 15, 2010 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 azogcc.az.gov.