Replies to This Discussion

Permalink Reply by Dion Warr, CPL on February 5, 2009 at 14:53

Tommy:

Depends on what the unitization is in your area. Most units in NW LA at depths below the Travis Peak (Hosston, Cotton Valley, Lower CV, HA, Gray Sand, Smackover) are based upon a 640-acre(±) basis (on section lines), but truly it depends on lessee's ability to pool (based upon the terms of the lease(s) involved) in the case of a voluntary unit, or the conservation order which creates the unit in question. There have been more than a few instances of geographic units created by LOC of greater than 640 acres pointed out elsewhere on this site, generally due to some compelling reason (physical features, state boundaries, extended laterals, proximity of dry holes at depth in the field area, etc.) Also, not all 'section based' units are laid on section lines. Some take in adjacent half-sections of neighboring sections, or quarter-sections from four adjacent sections; still others in so-called 'infill units' may be shaped such that they unitize remaining spaces between adjacent fields in such a manner to create a 640-acre unit.

If you could, please post the township and range in which your property is located along with your section. There are many Section 26's located in Caddo Parish. One of us (in case someone responds quicker than I do) will be able to look up your section and check any applicable orders for the layout of any units which lie within your vicinity.

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Permalink Reply by Dion Warr, CPL on February 5, 2009 at 14:57

Followup: I see that KB followed with another possibility that had just occurred to me, being the off-unit wellsite drilled and completed at depth within the unit. Please post the S-T-R of your location. --DLW

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Permalink Reply by Tommy Munds on February 5, 2009 at 16:32

We are in section 27 Township 16 No. Range 15 W.

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Permalink Reply by Dion Warr, CPL on February 11, 2009 at 3:38

Tommy:

Sorry to take so long to respond.

There is no unit formed in your section in Johnson Branch, and HA units in your area are defined on section boundaries. Being that there appears to be no physical feature that would impede a well being drilled in your section, the only thing that might prevent a well from being drilled in your section would be the lack of a legal or practical drilling location (wetlands, or proximity to habitable structures, lack of surface rights, etc.). It is possible to access the minerals from the adjacent section (from say, a 'superpad'), but it would require directional drilling into your unit and perforations within the confines of your unit. Overall, except for expense analysis, one would normally believe that the operator would want to spud the well as close to vertical as possible, and complete the operations within the same unit (section).

A subsurface easement (if said rights are not included in the lease form) from all owners affected by a directional would be required to 'drill through' to your section, if the intent is to spud and drill well with the intent to produce off-lease or off-unit product.

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Permalink Reply by kittycatmama on February 9, 2009 at 4:54

Dion, I have wondered about section sharing too. We are in Sec. 7 of 14, 14 Desoto. Encana filed forced pooling units for Secs. 8,6, 7 in our area. A HS well went in on Sec.8. Could we possibly share in it since Encana is going to be the operator for all these sections.

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Permalink Reply by The_Baron on February 9, 2009 at 5:31

no, You will share in production inside your unit. Look at the plat that is attached to the unit order.

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Permalink Reply by J W on February 9, 2009 at 6:06

is your section close to cross lake? 27/18n/15w

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Permalink Reply by kittycatmama on February 10, 2009 at 16:20

Ok Baron you seem pretty informed. Once this unit is formed, normally what is the average time frame before drilling starts?

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Permalink Reply by Dion Warr, CPL on February 11, 2009 at 2:50

Kittycatmama:

OK, Baron jumped my question, I'll jump his: (:-{D>)

There is no 'average time frame'. The initial well (or discovery well) is frequently drilled before the first unit is formed (as the first well is generally the 'wildcat' well), and subsequently the unit is formed around the well. If the operator is particularly active, wells could very possibly be drilled within the initial units formed within a few months. Frequently, years can go by with a unit in place, and no well drilled in them. In conventional fields, it is very common for units to be formed at or past the periphery of a reservoir, and as wells are drilled, it becomes apparent that the reasonable chance for success or economic viability in the outer units is just not there, and said formed units are never drilled. There is no real 'set answer' as to this question.

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Permalink Reply by kittycatmama on February 11, 2009 at 16:43

we have small parcels of land in sec. 21 15/14 and sec.7 14/14 desoto. do you have any info on these areas

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