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Permalink Reply by king john on July 26, 2009 at 18:48

les, i have noticed many more permits than completions in these reports and was wondering if there is some benefit to having a bunch of wells permitted ? does it help the companies when they have a bunch of permitted wells even though they have no plans of drilling any time soon?
kj

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Permalink Reply by Les Bamburg on July 27, 2009 at 2:56

KJ, I believe O&G companies always want to have an inventory of permitted well locations when they have drilling rigs under contract. This allows them to optimize their drilling program in an area and make sure the rigs aren't waiting on a permit. The well permits do eventually expire if not drilled (180 days in Louisiana) and will have to be re-permitted. Also, I don't think the paper reports every well permit and completed well and information on well permits is easier to locate.

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