360 Mining was approached by an oil and gas producer in Eldorado Texas who was dealing with low realizations on their natural gas. The combination of an unfavorable midstream agreement, perpetually low West Texas gas prices and low oil yield created the perfect storm where the pad site became uneconomic. Instead of shutting-in or flaring the natural gas, the producer looked to 360 Mining for a unique solution that could keep their production efforts online, keep their emissions down and flip their economic fortune.
After carefully analyzing the gas contents, type curve and lease dynamics, 360 Mining was able to deploy two of their standardized units on 600 Mcf/d of rich gas. Overnight, 360's In-Field Mining technology increased the producer's realized gas price from $1.45 per Mcf to $12 per Mcf swinging the lease economics back into profitable territory.
Todd Hallmark, the operating partner at Bob Hughes Oil Company, had this to say: "The pipeline operator jacked up rates so much that we would have been better off burning the gas than selling it. We’re a small oil and gas company and are not computer people. We turned to 360 Mining because they had proven their technology on their wells and the wells of other oil and gas companies before us. Without 360 Mining, we would not be able to operate this pad site profitably.”
Today, 360 Mining continues to operate the In-Field Mine on the producer's behalf and is in active discussion to scale additional In-Field Mining deployments across the producer's portfolio.
