Sierra Resources
Sierra Resources

History

Alvarado Field – Starr and Hidalgo Counties, Texas

Background

  • Sierra purchased the Alvarado Field from Union Pacific Resources in 1996
  • 2,600 acres
  • 11 Producing wells ~ 1.5 MMcfe/d

Sierra Value Creation

  • Sierra realized Alvarado was underdeveloped and underwrote a 90-square mile 3-D program
  • Sierra increased its land position to 13,000 acres
  • Drilled and completed 22 wells with 100% success rate
  • Exit production 26 MMcfe/d

Exit

  • Alvarado was sold to Peoples Energy in 2001
  • Subsequently, Peoples increased production to a peak rate of 70 MMcfe/d
Alvarado Field