We just received a pre app notice from Covey Park for secs. 27 and 34, T16N, R10W for cross unit lateral wells and other alternate unit wells.  Does this indicate that Covey Park will be drilling these wells shortly? 

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Short answer, probably not.  Trying to guess the drilling program for any operator is an inexact science.  First, these are not "well permits".  Although the application is technically for "alternate HC unit wells", it can be thought of as spacing approval.  Since these are horizontal wells they must comply with state requirements regarding set backs from unit boundaries and adjacent horizontal wells.  When approved the application would allow Covey Park to "permit" wells based on the spacing depicted in the plat.  There is no requirement to drill the wells and the application is effective indefinitely.  Covey Park currently has three rigs drilling LA Haynesville wells and holds nine un-drilled well permits.  Covey Park will have to get well permits for these alternate wells and when they do so it may become more clear as to the drilling schedule.  My best guess is that they will permit these wells in the coming weeks or months and that they would likely get drilled sometime in the fist half of 2019 if Covey Park maintains a three rig program.

Thanks Skip, we just wanted some idea as to when these wells might be drilled.  We understand that it is an inexact science.

If you are that interested I suggest that you learn to search for well permits on SONRIS.  Applications for alternate unit wells require notice letters to Interested Parties.  Well permits do not.  So the only way you will know when one or more permits are issued is to check the database periodically.  Permits to drill are a more definitive indication that specific wells are coming up on the drilling schedule but they are not a guarantee.  Plenty of permits expire without being drilled.  It's no big deal for an operating company to get a re-permit at a later date.  Permits can be effective for six or twelve months at the operator's discretion.

We just received the same dated Nov. 7. Really appreciate the information as I am lost in the sea of legalize these lawyers put to paper. So if I am getting this they are seeing if anyone who maybe effected by their plan objects to it? Also they maybe drilling new wells and doing horizontal drilling (which may go under other peoples land) is that about right?

Geof, yep it is confusing to those not experienced in these processes.  Those land or mineral owners who would consider requesting a local pre-application conference should know that unless they have experts and a compelling technical argument, it is a waste of time.  Also, keep in mind that the Interested Parties list required to receive notice not only includes mineral and surface interests within the unit boundary but also those immediately adjoining to a distance of 1000" even though they will not be paid royalties on the wells.  This application is more accurately considered a "spacing application".  If approved, the field order is effective indefinitely until dissolved by a subsequent field order, carries no obligation to drill on behalf of the applicant and before wells could be drilled based on the approved spacing an operator would be required to get separate permits to drill for which there is no requirement of notice.


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