Case History

• Cambrian Management, Ltd was contracted by Odessa Exploration, Inc.(OEI) to manage their oil and gas properties. The project consisted of 208 gross oil and gas wells scattered from the southern Permian Basin to the panhandle of Texas. The bulk of the wells were in the Spraberry Trend and the Brown Dolomite in the panhandle. Cambrian was contracted to manage the operations of the properties in an interim time frame while they were to be marketed for sale. Cambrian provided day-to-day operations, field personnel management, cost control, AP and budgetary function for the properties. Cambrian managed the properties for OEI from July, 2002 through September, 2003. We also managed the properties for the company that purchased them from OEI for a two month transition period. 

• Downhole Failure Tracking: (.PDF)
  Cambrian reviewed the historical lease operating cost statements which indicated that pulling cost associated with downhole failures were the primary cost driver on the project. Cambrian immediately began to evaluate pumping efficiencies on the Spraberry Trend wells. As a result of this analysis many wells were slowed down and pumping times were reduced with no detrimental affect on daily production.
  When a downhole failure occurred, the pumping system was completely analyzed for efficiency. Downhole pump plunger diameters were reduced in order to reduce the stresses within the pumping system. Stroke lengths, run times, and pumping speeds were also reduced. The frequency of downhole failures were reduced dramatically. Prior to Cambrian the downhole failure rate was 13.37 failures per month as a result of Cambrian’s engineering and management of the project, the failure rate was reduced to 3.89 failures per month. This equates to a 70% reduction in downhole failures.

• OEI Forecasted Production and Cost Vs Actual: (.PDF)
  Our client projected that operating cost would increase as a result of outsourcing the properties to Cambrian. As shown on this curve the results were quite the opposite. Under Cambrian’s management operating cost began to decline from historic levels immediately. The client's oil and gas production volumes stayed on trend with forecasts. As a result of the Cambrian management process on the project operating/G&A costs were reduced by $133,186 per month or 31.8%.