Upstream Operations

 Exploration and Production

The Navajo Nation Oil and Gas Company continues to move towards its goal of being a fully integrated oil and gas company.  The exploration activities are focused on the evaluation of  two Operating Agreements with the Navajo Nation: Canal Creek in San Juan County, New Mexico and Echo House Mesa in San Juan County, Utah and the development of new exploration plays in the Four Corners area.  NNOGC is aggressively pursuing the acquisition of additional producing properties within the Navajo Nation.

Canal Creek  

A detailed 3D seismic program was shot in the Canal Creek project area. The 19 square mile 3D survey has been shot and processed and is currently being interpreted. Leads and prospects have been identified.  The first exploration test of the 12,000 acre block is planned to be drilled in 2006.     

Echo House Mesa

The Echo House Mesa exploration project covers 21,926 acres immediately south of Bluff, Utah in the Red Mesa and Mexican Water Chapters.  The project is adjacent to the recently acquired Tohonadla Field.  A 3D seismic program covering Tohonadla and part of Echo House Mesa will commence during the Winter of 2005-2006.  The new seismic program will define exploration and development locations in the Tohonadla Field and the adjoining exploration acreage.

Production Operations

In 2003, NNOGC and the Navajo Nation entered into a service agreement to operate three wells in  the Greater Aneth area. These oil wells reverted to the Navajo Nation when the term of the leases expired.  With the operation of these properties, NNOGC has commenced to build a production operations department.

Acquisition and Producing Properties

The Navajo Nation’s first right of refusal option allowed NNOGC to purchase a 10% working interest in the Ratherford Unit of the Greater Aneth Oil Field in 2002.  The acquisition of this production was the first time the Navajo Nation had participated in petroleum production outside of “Royalty In Kind”.  In November 2004, NNOGC purchased 25 % of the Chevron-Texaco interests in the Aneth, McElmo and Ratherford Units of Aneth Field and in March 2005 a 50% interest in the Tohonadla and Desert Creek fields.  

With these acquisitions NNOGC’s average daily production increased to 1063 BOPD in March 2005 from an average daily production of 301 BOPD in March 2004.  An aggressive program is underway to enhance production from these properties.  NNOGC’s production is from its interests in the following fields and units:  (Click on the image to enlarge)

 

Aneth Unit 17.5%

Ratherford Unit 11.5%

 McElmo Unit    5.0%

Tohonadla Field 50.0%

Desert Creek Field 50.0%

Navajo Tribal Wells 100%