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Grayburg-Jackson Oil Field

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Our first acquisition was the Grayburg-Jackson oil field which is a waterflood property and is operated by the HNRA subsidiary LH Operating, LLC (“LHO”).


The Grayburg-Jackson oil field is located on the Northwest Shelf of the Permian Basin in Eddy County, New Mexico. According to the United States Geological Survey, the Northwest Shelf contains the largest recoverable reserves among all the unconventional basins in the United States. LHO’s holdings comprise 13,700 contiguous leasehold acres, 342 producing wells, 207 injection wells and 1 water source well for a total of 550 wells on 20 federal and 3 state leases. Click the button for land and ownership overview.

Land & Ownership

The oil filed has several large reservoir structures that range from as shallow as 1,500 feet deep to 4,000 feet deep. The field has attainable proven reserves of approximately 20 million barrels of crude oil and 6 billion cubic feet of natural gas. All field production of the Company is being sold under long-term contracts to various customers in the USA.


LHO was a privately owned company that operated the Grayburg-Jackson field (the “field”) from early 2020 after acquiring the property in late 2019. The 2020 baseline production level was approximately 500 barrels of oil equivalent (BOE) per day. LHO’s production has increased from the baseline production of 500 BOE in 2020 to today’s range of 1,250-1,450 BOE per day by the implementation of Zone 7R waterflooding. Click the buttons for the history of the Seven Rivers (7R) development history and the Seven Rivers (7R) waterflood development.

7R History 7R Waterflood
Period Epoch Formation Approx. Regional Thickness (ft)
Permian Ochoan Dewey Lake 200-400
Rustler 100
Salado 1,000
Guadalupian Tansil 200
Yates 200
Seven Rivers 500
Queen 200-500
Grayburg 300
San Andres 1,500
Leonardian Glorieta 100
Yeso Paddock 1,500
Blinebry
Tubb
Drinkard
Wolfcampian Wolfcamp 0-1,500

We plan on doing the same successful workovers which will expand the existing waterflood patterns field-wide. Management expects to increase daily production to nearly 4,000 barrels of oil and oil equivalent in the next three to four years in accordance with a reserve report by William M. Cobb & Associates, Inc. a 3rd party engineering firm. Click the button for the latest published reserve report.

Reserve Report

The Grayburg-Jackson oil field will continue to be operated by the experienced field team with extensive industry experience. The team includes a field superintendent three field supervisors, two field leads, a workover foreman and an environmental supervisor with Bureau of Land Management and remediation experience. The operations will be under the direct supervision and involvement of our VP of Operations who has 40+ years of experience in similar water flood oil fields.

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