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Permalink Reply by Skip Peel - Mineral Consultant on May 10, 2011 at 2:23

No.  S/N 242358 has a surface location 441' FSL (From the South Line) and 680' FWL (From the West Line) and S/N 241444 has a surface location 254' FNL and 2516' FWL.  Although both surface locations are in Section 19 - 16N - 10W, neither has the lateral located in that section.  242358 will drill into Section 30 and 241444 into Section 18.

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Permalink Reply by P.G. on May 10, 2011 at 3:11

Would drilling a pad interrupt prescription in a section even though the laterals were drilled into other sections and not that one?

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Permalink Reply by Skip Peel - Mineral Consultant on May 10, 2011 at 3:16

IMO, No.  As it is not a good faith effort to produce from the section containing the surface location.

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Permalink Reply by Gale Bagley on May 10, 2011 at 3:33

Thanks Skip, I always look forward to your comments, always good info!!

Gale Bagley

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Permalink Reply by Skip Peel - Mineral Consultant on May 10, 2011 at 3:54

You're welcome, Gale.  I often mention that the existing LA. mineral codes are not a good fit in many instances of development by horizontal drilling.  I recently ran across an instance where a lease was days from expiration and a well to develop the section containing the lease had just been spud in an adjoining section.  Although the lease was in term when the well began drilling the well bore would not reach its vertical depth, turn horizontal and penetrate the section covered by the lease until after the expiration date.  The authors of the codes did not anticipate this kind of scenario.  And there are, and will be, numerous others.  For example, the determination of whether a particular formation should be considered productive or economic in a specific location for legal purposes is different for unconventional reservoirs than for conventional reservoirs.  IMO, The State of Louisiana should be considering updating codes or creating a new set that recognize and codify horizontal development.  If such action is not taken, the codes will be modified piecemeal through litigation over time.

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Permalink Reply by smith1 on May 10, 2011 at 5:49

Thanks, So - if I am understanding, then there should be another well pad somewhere in Section 19 besides the one on Evangeline Drive, which I am assuming is the #242358, Elm Grove, LA?  There is just alot of activity at this well pad location and I am trying to determine which well # it is for.

Also, I looked on Sonris to see if Section 19 has been permitted for a well but could not find anything. Would Sonris be the correct place to check?

Thank you.

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Permalink Reply by Skip Peel - Mineral Consultant on May 10, 2011 at 5:57

Not necessarily.  It is possible to drill a lateral in Section 19 from either of these two existing pads.  242358 is the pad closest to Evangeline Drive.  Yes, when a permit for Section 19 is issued it will appear on SONRIS Lite.

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