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The Yates Field Discovery of 1926 — Pecos County, Texas (The Field That Opened the Permian Basin)

The 1926 Yates No. 1-A discovery by Mid-Kansas Oil opened the Permian Basin. Today the Yates Field has produced over 4 billion barrels and remains a Kinder Morgan flagship.

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Discovery Facts

County: Pecos County, Texas

Year of discovery: 1926

Discovery well: Mid-Kansas Oil Co. Yates No. 1-A (Transcontinental / Marland Oil)

Producing formation: San Andres / Grayburg carbonate

Cumulative production: 4+ billion bbl recovered

Modern operator: Kinder Morgan Production

The Discovery That Opened a Basin

The 1926 Yates discovery is the single most consequential event in Permian Basin history. Before the Yates No. 1-A came in, West Texas was viewed as marginal exploration territory — expensive to drill, far from infrastructure, and unproven at scale. The Yates discovery proved the Permian Basin had world-class oil resources in massive carbonate reservoirs, and every subsequent Permian field discovery (Hendrick 1926, Wasson 1936, Slaughter 1937, SACROC 1948, Spraberry 1949) traces its operator interest and capital back to the confidence Yates created.

The Yates No. 1-A was drilled by Mid-Kansas Oil Company (a Marland / Transcontinental affiliate) on the Yates ranch in Pecos County. The well came in as a flowing well into the Permian San Andres / Grayburg carbonate at modest depth and immediately demonstrated the resource potential of the Central Basin Platform.

A 200,000-Acre Permian Carbonate Giant

The Yates Field is one of the largest oil fields ever discovered in the United States:

Areal extent: approximately 200,000 productive acres on the Central Basin Platform of the Permian Basin

Cumulative production: 4+ billion barrels recovered to date — among the top cumulative oil productions of any U.S. field

Reservoir: Permian San Andres / Grayburg dolomitized carbonate; thick stacked pay; remarkable areal continuity

Recovery method: primary depletion (1926-1970s), then nitrogen injection / pressure maintenance (1970s+) to extend field life by decades

Modern operator: Kinder Morgan Production runs the modern Yates Field Unit with 600+ wells producing 800,000+ bbl monthly

Cultural & Industry Impact

Yates’s impact extended far beyond the field itself:

It validated Permian carbonate exploration. Every Permian field discovered after 1926 — on the Central Basin Platform, the Northern Shelf, and the Eastern Shelf — was drilled with capital that flowed in because Yates proved the resource was real.

It anchored Mid-Continent capital flow into Texas. Mid-Kansas / Marland brought Oklahoma operating expertise into West Texas; Hendrick (1926, Winkler) followed within months; the entire late-1920s Permian land rush was downstream of Yates.

It pioneered pressure-maintenance EOR. The 1970s nitrogen-injection program at Yates was an early industry example of using inert-gas injection to maintain reservoir pressure on a giant carbonate — a model later adapted to Wasson, Slaughter, and other Permian giants.

It set the modern unitization template. The Yates Field Unit consolidates fragmented mineral interests under a single operator umbrella — the operating model now standard across the Permian Basin EOR portfolio.

Modern Mineral-Owner Implications

For mineral owners on the Yates Field or related Pecos County interests:

Operator quality is excellent. Kinder Morgan Production is one of the most capable U.S. EOR operators; the Yates Unit pressure-maintenance program supports long reserve life.

Inheritance is typically 3-4 generations deep. Original 1926-1935 lease bonus money is now being received by great-grandchildren of the original Pecos County signers.

Royalty checks can be substantial. Yates Field decimals on actively producing tracts often generate meaningful monthly cash flow vs. ultra-stripper fields.

For modern unit-level details, see our Yates Field Unit guide.

Selling Mineral Rights Tied to the 1926 Yates Field discovery

If your mineral interest traces back to the 1926 Yates Field discovery or its associated boom-era leases, Buckhead Energy can value the future cash flow stream and provide a free written offer with no obligation. Out-of-state owners are common; we handle the entire process remotely.

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Key Takeaways

  • The 1926 Yates No. 1-A discovery by Mid-Kansas Oil opened the Permian Basin. Today the Yates Field has produced over 4 billion barrels and remains a Kinder Morgan flagship.
  • Buckhead Energy is a direct buy-side firm; sellers pay no broker commissions, listing fees, or auction premiums.

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