Information Circular 107


 Ownership of the discovery well transferred to
Hughes Eastern Corporation in 1985. Permits
were issued to Hughes Eastern to drill two
additional offsets, one east and one southeast of
the discovery well (permits 1204 and 1205,
Figure 11). Permit 1204 was completed in
August 1986. The Smackover was again found
at a structurally lower position (Figure 12), this
time 44 feet lower. Two zones of saltwater
production were also encountered (-16,208 to
-16,211 feet MSL and -16,215 to -16,233 feet
MSL; Figure 12). LSS core analysis yielded
mean porosity estimates of 23.9 and 13.6
percent, respectively, and no indications of oil.
As interpreted by Hughes Eastern Corporation
(1988) (Figure 11), the Smackover in this well is
below the probable oil-water contact. The third
offset, permit 1205, has not been drilled. This
well is now actually closer to the more recently
discovered McDavid field (discussed below) and
is outside the potential productive limits drawn by
Hughes Eastern Corporation (1988) (Figure 11).
 Production to date at Bluff Springs is solely
from the discovery well. Total production for
Bluff Springs field, as of the end of 1989, was
220,000 barrels of oil (Appendix 2).


 MCDAVID FIELD

 McDavid field was discovered on June 14,
 1988 with the first production test of the
 discovery well, the Hughes Eastern Corp.
 Walker-Baley number 34-2 (permit 1230). The
 well is located in Section 34, Township 5 North,
 Range 31 West, Escambia County (Appendix 1).
 It is about one and one-half miles southeast of
 the Bluff Springs discovery well (Figures 3 and
 11). As discussed above for Bluff Springs field,
 this area, west and southwest of Jay, is known to
 be underlain by Louann Salt, with seismic studies
 indicating salt-induced fault structures in the
 overlying formations (Lloyd and Applegate,
 1987). Seismic data has been interpreted by
 Hughes Petroleum Corp (1988) (Figure 11) to
 indicate several small structures in a northwest to


southeast trend in this specific area.
 The discovery well produced 235 barrels of oil
per day and no saltwater. Oil gravity was 53.80
A.P.I.. Production is (as it is for Bluff Springs
field) from Jurassic-age Smackover Formation
dolostones from -16,075 to -16,089 feet MSL.
These dolostones were described by LSS as
gray to dark gray, sucrosic to granular, with poor
to fair porosity and permeability. Examination of
core chips with a binocular microscope concurs
with this description. Core analysis by LSS
yielded a mean porosity estimate of 15.9 percent
for this zone. Geophysical log analyses by
Charles Tootle (Appendix 9) yielded a mean
porosity estimate of 12.8 percent, an original oil
in place estimate of 4,987,347 barrels, and a
recoverable oil estimate of 498,736 barrels.
 The first offset, permit 1234 (Hughes Eastern
Corporation Jones Estate number 34-1) is
located about one-half mile southeast of the
discovery well (Figure 11, Appendix 4). The
offset was completed in June 1989. The
Smackover Formation was encountered at
-16,099 feet MSL, structurally 24 feet lower than
in the discovery well (Figure 12). The structure
map (Figure 11) was drawn prior to the time this
well was drilled. In fact, the map was submitted
to the Florida Geological Survey in support of a
request for an non-regular location for this well.
As shown on the map, Hughes Eastern
Corporation expected to encounter the
Smackover at about -16,050 feet MSL in this
well. Based on the actual depth (-16,099 feet
MSL), the McDavid structure is probably smaller
than that shown. The productive limit expected
by Hughes is still below this depth (at about
-16,200 feet, Figure 11); however, analysis of
geophysical logs from this well indicate that the
oil-water contact may actually be at about
-16,102 feet MSL (Joel Duncan, Florida
Geological Survey, personal communication,
1991). In addition, production from the discovery
well appears to have peaked around December
1988 and may have depleted this small structure
enough to move the potential productive limits
above the level of the Smackover in the offset