Paradox Resources finalised closing of its upstream and midstream assets in August of 2017, and work has been underway since December of 2017 to restart the Lisbon plant in order to get the company’s additional gas to market.
Paradox Resources has three workover rigs running, multiple nitrogen (N2) jetting units, and has several multistage recompletions scheduled for June.
Paradox’s production has gone from 4million cubic feet per day (mmcfd) to 10 mmcfd over the last two weeks and 14 mmcfd steady by mid-July is targeted. The company currently has 50 billion cubic feet (BCF) of PDP (Proved Developing Produced) and behind pipe reserves, with an additional 50BCF of PUDS (Proved Undeveloped).
The company owns multiple oil and gas fields in Colorado and Utah which feed the Lisbon plant. The Lisbon Plant is a 50 mmcfd rated treating plant, with a 40 mmcfd cryogenic plant and a 4,500 BPD (Barrels Per Day) fractionation train. The Paradox team has slightly reconfigured the plant and brought in membrane N2removal unit (NRU) and Cryo units to run it more efficiently from a current Opex perspective with plans to “flex up” moving forward. It has a helium (He) facility which can strip and polish up to 500 mcf/d of He to 99.999% purity.
Paradox CEO, Todd A. Brooks, commented, “Our Paradox Basin assets include upstream, midstream and the Lisbon gas processing plant. This combination gives us advantageous flexibility as we produce and develop these long-life assets out of cash flow. The source rocks in the basin are interesting, and there is potential for developing unconventional fracture plays as well. With long life oil & gas reserves, stable production and cash flow, ~100,000 net acres HBPdand significant infrastructure, we are well positioned.”
The Paradox Basin has been noted by the United States Geological Survey(USGS) as having one of the largest undeveloped oil and gas fields in the US.