· Introduction
The Nash Draw Brushy Canyon Pool (NDP) in southeast New Mexico is one of the nine projects selected in 1995 by the U.S. Department of Energy (DOE) (NPTO) for participation in the Class III Reservoir Field Demonstration Program. The goals of the DOE cost-shared Class Program are to: (1) extend economic production, (2) increase ultimate recovery, and (3) broaden information exchange and technology application. Reservoirs in the Class III Program are focused on slope-basin and deep-basin clastic depositional types.

· Background
Production at the NDP is from the Brushy Canyon formation, a low-permeability turbidite reservoir in the Delaware Mountain Group of Permian, Guadalupian age. A major challenge in this marginal-quality reservoir is to distinguish oil-productive pay intervals from water-saturated non-pay intervals. Because initial reservoir pressure is only slightly above bubble-point pressure, rapid oil decline rates and high gas/oil ratios are typically observed in the first year of primary production. Limited surface access, caused by the proximity of underground potash mining and surface playa lakes, prohibits development with conventional drilling.

· General Statement of Work
The first phase of the project was a "Science Phase" in which detailed reservoir characterization and project data, including the acquisition of 3-D seismic data, were to be analyzed to provide the basis for delineating appropriate reservoir management strategies. During Phase I, the feasibility of a pilot project was to be determined and the results of the pilot would be extrapolated to a full field implementation, if technically and economically feasible. Phase II of the project was the "Implementation Phase" in which results of the pilot testing would be considered for expansion to the remainder of the field.

· Overview of Budget Period 1 (Science Phase)
The Brushy Canyon reservoir at the NDP was found to be much more complex than initially indicated by conventional geological analysis. While the original concept pictured the NDP as a collection of thin channel sands continuously distributed between wells, the results from the Phase I work show the subzones within the sandstones are lenticular and are not always continuous from well to well. Although the original evaluation was that both the "K" and "L" sandstones were the major oil producing intervals, the results of this study show the primary oil productive zone at the NDP is the "L" sandstone. The geological modeling, seismic interpretation, reservoir characterization, and simulation studies obtained in Phase 1 provided a sound technical basis for the field development program undertaken in Phase 2 of the project.

--Geological Analysis
--Data Wells Drilled
--Advanced Log Analysis
--Geophysical Results
--Geostatistics and Seismic Attribute Analysis
--Reservoir Modeling and Simulation
--Technology Transfer Activities
--Modified Plans

· Overview of Budget Period 2 (Implementation Phase)
The activity at the NDP during Budget Period #2 has included the continued analysis of data, the acquisition of interests belonging to non-consenting partners, acquisition of additional 3-D seismic, completion of additional zones in exiting producing wells, and the design, drilling, and completion of deviated/horizontal wells to access oil reserves beneath potash mines and playa lakes.

--Well Workovers
--Directional/Horizontal Wells
--Additional 3-D Seismic Tests
--Characterization and Simulation
--Gas Processing and Injection
--Technology Transfer Activities