The Bone Spring is an oil formation consisting of three zones located in the Permian Basin of New Mexico and West Texas.  The recent adoption of new drilling technology such as horizontal drilling and fracturing techniques have allowed companies to explore new oil fields in the United States.  The Bone Springs Oil Play is one of the hottest emerging areas in North America right now.  Landowners are signing mineral rights leases in the Bone Spring Oil Field which are making people very wealthy.  We are also seeing a shift from natural gas shale plays to oil shale formations such as the Bone Spring.  It is important to note that while some people refer to the Bone Spring as a shale, the Bone Spring is actually more of a sandstone.  However, some operators refer to the Bone Spring as the Bone Spring Shale and you will see it on my map page.

The Permian Basin is very confusing.  On the Eastern side of the Permian Basin, we have the top zone being the Spraberry field, below the Spraberry we have the Dean Formation, and below the Dean Formation, we have the Wolfcamp Shale which is also being called the Wolfberry Oil Play.  On the western side of the Permian Basin, we have the Avalon Shale and then the Bone Spring which consists of three different layers.  The upper bone springs layer is mixed with the Avalon Shale.  After the Avalon Shale, we have the middle bone spring ( 2nd bone spring ) and the lower bone spring ( 3rd bone spring ).  Under those three bone springs formations, we have the Wolfcamp Shale once again. 

Bone Spring wells appear to cost around 4-5 million to complete and hit depths of 6,000-9,800 feet before lateral wells are drilled.  Total depth is around 14,000-14,800 ft.  Oil production per well is ranging from 300 barrels of oil to 1,300+.  Not bad for a new emerging oil field.  While the biggest increase of oil rigs are flocking to the Eagle Ford Shale in South Texas, the Bone Spring is also seeing a heavy increase as exploration companies tap the multiple zones I mentioned above for oil & gas.  I've actually heard of mineral rights leases going for $10,000+ per acre right now.  As high as $15,000-$20,000 per acre over in the Spraberry Field.  Looks like landholders have hit black gold!!

New Mexico Counties

Chaves County - Eddy County - Lea County

Texas Counties

Andrews County - Culberson County - Gaines County - Hudspeth County - Jeff Davis County - Loving County - Pecos County - Reeves County - Ward County - Winkler County

Companies Drilling the Bone Springs - Chesapeake Energy (CHK) - Devon Energy (DVN) - Samson Oil & Gas (SSN) - Sand Ridge Energy (SD) - Cimarex Energy (XEC) - Concho Resources (CXO)