I am looking for some guidance.
Recently we have received several notices from a law firm that represents Chesapeake Operating, LLC. The letters are copies of letters to the Commissioner of Conservation. The notices notify the Commission of an application to drill a cross unit well. The application comes with map of the units and the proposed well direction.
But it is not crossing the land I own with family. In its in the neighborhood, but not our land.
Question 1: Is this SOP pursuant to some LA statute or regulation for land that is close by to get such a notice?
Question 2: Is this in any way predictive of a similar possibility for the land I do own?
As I say, the proposed is close by our land, just not on it yet.
Any insights would be greatly appreciated. Still trying to get a handle on all of this...
Other than the occasional re-frac experiment I haven't seen any activity from ECA. Now that Vine Oil & Gas is beginning to operate I'm hoping they will choose to drill HC wells in HA units that ECA has operated in the past.
Skip is Vine O & G connected to ECA? Or are they drilling the Cotton Valley where ECA has the Haynesville
Vine is the operating company started by Blackstone Group to run the former SWEPI Haynesville assets. SWEPI and ECA were 50/50 partners in their Haynesville operations. Now Vine O&G is starting a drilling program. I imagine they can drill in any of the units co-owned with ECA if they choose to do so, not just the units formerly operated by SWEPI. They haven't given any indication of interest in drilling CV so far.
Skip, Thanks for the info. I just learned something. Has Vine drilled the Haynesville anywhere
Vine is a new company formed by Blackstone with top personnel who formerly worked for SWEPI in the Haynesville. The company recently received its first permits (2 H wells in S5 and 2 in S6 - 14N - 9W, Red River Parish). So, although the company should drill its first wells in the near future, the people running the company have drilled quite a few HA wells in their former positions with SWEPI.
The CEO of Vine is Eric Marsh, formerly Exec. VP of Encana. He and his team are based in Dallas where they worked for ECA, not SWEPI. ECA closed it's Dallas office and Blackstone backed this team of former ECA employees.
Ok, so can Vine automatically drill anywhere EnCana has a lease or do they have to drill where SWEPI had a lease. I know Ecana and Swepi were joint lease holders on lots of leases--just wonder if those leases are interchangeable for drilling purposes
Thanks for the correction, wr. Now if Vine will just start operating all the shared interest units and drill new HC wells.
kcm, every lease is shared 50/50. Wherever SWEPI took a lease ECA got a half interest and visa versa. ECA would have to designate Vine as the unit operator for the units where they remain as operator. That's quite easy to do from a regulatory stand point. The question is: would ECA be willing to pay their prorated share of new well costs as a Working Interest in the unit.?
Oh no, sorry I didnt make it clearer, it's not from Encana I wish it was. I am receiving from the adjoining section 24 I think. I am hopeful for our section soon.
Although CHK (in Section 24) is actively drilling HA wells currently, Encana is not. Encana has not permitted a LA HA well since September, 2013.
Point of Clarification: our land is in 21 12N 12W and 23 12N 12 W. My review of SONRIS shows that the most recent proposed cross-lateral's closest point is approximately 5 miles from our land.
Although this group has explained what the rules (laws/regs) provide, I cannot fathom why we are getting a notice in this particular instance.
CHK is permitting a number of new HC wells in the Red River- Bull Bayou Field. Have you reviewed the Commissioner's Public Hearing Schedule Docket? That's the only place you would find an application associated with this type of notice as there is no well permitted at this time. That will come after the alternate unit well spacing is approved.