JOHN H. HENDRIX CORPORATION

Mr. William J . LeMay, Director New Mexico Oil Conservation Division Energy and Mineral Department P. O. Box 2088

Santa Fe, New Mexico 87504-2088

Attention: Mr. David R. Catanach

Gentlemen:

John H. Hendrix Corporation respectfully requests administrative approval for an exception to Rule 303-A to permit the downhole commingling of production in the above subject well from the South Brunson Drinkard-Abo and Wantz Granite Wash Pools in Lea County, New Mexico.

Currently, the well i s dual completed with the South Brunson Drinkard-Abo flowing up the annulus and the Wantz Granite Wash flowing up the tubing. Approval of this request w i l l protect correlative rights, promote conservation and encourage the efficient recovery of o i l and gas reserves.

By copy of this letter, we are notifying the offset operators of this proposed commingling. I f these operators have no objections, we ask that they execute the attached waiver and return two copies to the N.M.O.C.D.

Enclosed i s pertinent data supporting this application as outlined in Rule 303-A. I f additional information i s necessary, please contact me at (915) 684-6631.

(915) 684-6631 223 W E S T WALL. S U I T E 525

MIDLAND. T E X A S 79701

A p r i l 29 , 1993

RE: Downhole Commingling Request Cossatot "H" No. 1 Lease Unit L, Section 13, T22S -R37E, Lea County, New Mexico

Lee Wood LW/ah

COSSATOT MH" NO. 1

PERTINENT INFORMATION

A) John H. Hendrix Corporation 223 W. Wall, Suite 525 Midland, TX 79701

B) Cossatot "H" No. 1 Unit L, Section 13, T22S - R37E Lea County, New Mexico Commingled Zones: South Brunson Drinkard-Abo and

Wantz Granite Wash

C) A lease p l a t i s attached showing the location of t h i s w e l l . (Exhibit 1)

D) The Form C-116 i s included to show current status of South Brunson Drinkard-Abo O i l Zone and Wantz Granite Wash Zone. (Exhibit 2)

E) Production decline curves for the South Brunson Drinkard-Abo and Wantz Granite Wash are attached. (Exhibit 3)

F) Due to the obvious low productivity of t h i s well and due to the f a c t the well would be produced i n a pumped off condition, i t i s respectfully requested that the BHP data be waived.

G) Due to the fa c t these zones are already commingled i n many wells, i t i s requested that the gas ana l y s i s requirements be waived.

H) Working i n t e r e s t and royalty ownership i n the two zones i s the same.

I ) The following percentages are suggested based on the anal y s i s of past and current production.

South Brunson Drinkard-Abo Wantz Granite Wash

Anticipated Production O i l % BOPD Gas % 19%

81%

21

91

95%

5%

MCFPD 2777

158

Total 100% 113 100% 2935

JOHN H. HENDRIX CORPORATION

MIDLAND, TEXAS

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JOHN H. HENDRIX CORPORATION

(915) 684-6631 223 W E S T WALL. S U I T E 525

MIDLAND. T E X A S 79701

A p r i l 29, 1993

CERTIFIED MAIL

RE: Waiver Request to Downhole Commingle South Brunson Drinkard-Abo and Wantz Granite Wash Pools, Cossatot "H" No. 1, Unit L, Section 13, T22S -R37E, Lea County, New Mexico

TO: OFFSET OPERATORS

Attached i s a copy of John H. Hendrix Corporation's administrative application for N.M.O.C.D. approval to downhole commingle South Brunson Drinkard-Abo and Wantz Granite Wash Pools in our Cossatot "H" No. 1. Approval of this application w i l l promote conservation and encourage the efficient recovery of o i l and gas reserves.

As an offset operator, i f you do not have any objections to the attached application, please sign the enclosed waivers and mail the two copies to the N.M.O.C.D. in Santa Fe and one copy to the N.M.O.C.D. in Hobbs. We would also request that you send a copy to John H. Hendrix Corporation in Midland. We have enclosed self addressed, stamped envelopes for your convenience.

I f you have any questions, please c a l l me at (915) 684-6631. Your prompt consideration in the above matter i s appreciated.

Your ruly,

Lee Wood

Attachments

April 29, 1993

RE: Request to Downhole Commingle (Cossatot "H" #1) South Brunson Drinkard-Abo and Wantz Granite Wash Pools, Unit L, Section 13, T22S -R37E, Lea County, New Mexico

Mr. William J. LeMay, Director New Mexico Oil Conservation Division P. 0. Box 2088

Santa Fe, New Mexico 87504-2088

Attention: David R. Catanach

As an offset operator, the undersigned has no objection to the John H. Hendrix Corporation application to the downhole commingling of the South Brunson Drinkard-Abo and Wantz Granite Wash Pools in the captioned well bore.

Approved By:_

Representing:

Date:

OFFSET OPERATORS TO

JOHN H. HENDRIX CORPORATION'S

COSSATOT "H" NO. 1

Exxon Company USA P. O. Box 1600 Midland, TX 79702

Marathon Oil Company P. O. Box 552 Midland, TX 79702

Chevron Operating Co. Inc. P. O. Box 670 Hobbs, NM 88240

JOHN H. HENDRIX CORPORATION

MIDLAND. TEXAS

'93 JUN i an 9 is

A p r i l 29, 1993

RE: Request t o Downhole Commingle (Cossatot "H" #1) South Brunson Drinkard-Abo and Wantz Granite Wash Pools, Unit L, Section 13, T22S -R37E, Lea County, New Mexico

Mr. William J. LeMay, Director New Mexico O i l Conservation Division P. 0. Box 2088

Santa Fe, New Mexico 87504-2088

Attention: David R. Catanach

As an o f f s e t operator, the undersigned has no objection t o the John H. Hendrix Corporation application t o the downhole commingling of the South Brunson Drinkard-Abo and Wantz Granite Wash Pools i n the captioned w e l l bore.

Approved By:

Representing: CJ/iMfe* L(.£.fl. Produ^i^tn .

Date:

, u CQNSEBv - UN DIVISION RECi*ED

•93 JU'H 7 Bfl 9 29

A p r i l 29, 1993

RE: Request t o Downhole Commingle (Cossatot "H" #1) South Brunson Drinkard-Abo and Wantz Granite Wash Pools, Unit L, Section 13, T22S -R37E, Lea County, New Mexico

Mr. William J. LeMay, Director New Mexico O i l Conservation Division P. O. Box 2088

Santa Fe, New Mexico 87504-2088

Attention: David R. Catanach

As an o f f s e t operator, the undersigned has no objection to the John H. Hendrix Corporation application t o the downhole commingling of the South Brunson Drinkard-Abo and Wantz Granite Wash Pools i n the captioned w e l l bore.

Approved By: P. L l . l l a f l f t f n JC.H. HARPER - PERMITS SUPERVISOR Representing: EXXON CO., U.S.A. -

Date: 6"c2^ 3