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Comment by Skip Peel - Mineral Consultant on June 30, 2016 at 15:53

Both of MRD's Jackson Parish test wells are "lease wells", not unit wells.  If they are productive MRD will likely apply for a unit order in the future.  An operator does not have to form a unit for a non-unitized horizontal well as long as all the mineral interests in the well footprint are under lease by the operator or a working interest in the well.  No company wants to drill a single horizontal well as that is not economic.  If an operator wishes to drill multiple wells then in most cases they need the right to force pool all mineral interest within a unit boundary which is a right that comes with a compulsory drilling unit order. 

Comment by Ryan Kennedy on June 30, 2016 at 15:43

Skip, has a drilling unit been established for the Weyerhaeuser well? Is a drilling unit needed for MRD to be able to drill a horizontal?

Comment by Skip Peel - Mineral Consultant on June 30, 2016 at 15:12

Sounds as if MRD may be on the verge of amending their Weyerhaeuser well permit to drill a horizontal.  They have already done that on their other Jackson Parish test well, the Lamkin 4-33H #1.

Comment by Colleen on June 30, 2016 at 15:05

The weyerhauser co 15 well 1 sn249569

Comment by Skip Peel - Mineral Consultant on June 30, 2016 at 14:10

There could be a number of reasons but I don't think it is anything to worry about.  When an operator drills a vertical test they drill all the way through the target formation and out the bottom.  They want to measure the thickness and log the entire interval.  This is required to determine at what depth to "land" the lateral or horizontal portion of the wellbore. In the case of a horizontal well, the portion of the vertical below the "kick off" point is not needed and is plugged.  The kick off point is where the driller will begin to "build the curve".  It takes some hundreds of feet for the drill pipe to turn a radius from vertical to horizontal.  10850'  would be a logical kick off depth for a wellbore targeting a formation that is in the 11,100 to 11,300' range True Vertical Depth (TVD).  What well are you referring to?

Comment by Colleen on June 30, 2016 at 13:53

Skip, I noticed a work order for a plug back at 10850' for the one well I asked about is that a good thing or bad thing? Does that mean prep for converting it to a producing well?

Comment by Skip Peel - Mineral Consultant on June 23, 2016 at 14:01

Then you are right next door (so to speak) to the second Jackson Parish exploratory well being drilled by MRD in Section 15.  The Weyerhaeuser Co 15 #1 was reported 13 days Drilling Ahead @ 11010'', 6/17.

Comment by Colleen on June 23, 2016 at 13:51

Sec 14 township 16 range 1west

Comment by Colleen on June 22, 2016 at 14:37

Will have to look up husband's but I know it's mrd managing his and I believe only in Lincoln parish inherited via dad from his dad.

Comment by Skip Peel - Mineral Consultant on June 22, 2016 at 14:37

You need a section-township...and range.  Like 14-16N-2W.

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