Anyone have any ideas on this one? Is this just a search mission.

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True, at least in part.  The area would appear to have been part of some older mature leases (>10 years) in and near the conventional AC and prior held in whole or in part by production and operations.  In some of those areas only minimum operations (say, the drilling of a well) could hold lease acreage for automatic extensions for two years a pop depending upon proximity to and involvement (in whole or in part) with such prior production.  This may (MAY) be what Lisa is dealing with.  Working with all the details of maintaining a federal lease is hard enough without having all the relevant facts in front of you.  Frankly, much like TD, I'm not looking for another project right now - and even if I was, I would gladly defer to a "Western States" landman with more federal lease and unitization experience to explain all of that machinery (e.g., NM, CO, UT, WY, MT, NV, etc.) - they have far more exposure to dealing with BLM / fed lease and unit matters than I do.

Lisa - a small primer on fed lease extensions...

Thanks Dion & Jay!   Just want to make sure me as a landowner is well aware of where I stand.  Especially being in the Federal Unit adjacent to the west of one that Gordon Well 251222 is in.   BLM has my unit as Approved with expiration date of 4/2022, 

Thanks guys!    Now it makes since because this lease is about 33,000 acres in both AC & TMS.

Just posting a map showing this well (20545) and surrounding historical well control. Note that each "box" is a section.

Closest historical well is about 2 miles away - too far to have any impact on reasons to this well.


RM 20545 in T8S R11E, is that the closed to Gordon 251222


That's the last five of the API number - corresponds to SN 220049, Sec. 18, T1N-R2W

Gotcha now!

Could it be that it is cheaper to drill to extend the lease of the unit (33,000 acres) than to risk rebid or pay higher per acre price.   It appears that the unit I am in which is about 1974 acres was leased in 2012 for $207,345.00.   Which is about $111 an acre.

Assuming a dry hole with no casing set, a 9000' well in this area will cost anywhere from $500,000 to $650,000 (very ball park estimate which may be a lot lower depending on how costs are allocated by the operator).

A new lease would cost MUCH more than the original $111 per acre in my opinion. Drilling well is less expensive option to perpetuate the lease. And they will get a control point as to open hole logs and hopefully mud log shows to possibly help develop another drilling location in area.

So True!  The unit that I am in is adjacent to this unit to the west.   But my unit is leased to MBI not R&R as this one was.   BLM has the unit Gordon Well is in as Pending status with Magnum Producing as Operator.  The unit I am in is Approved.   At least hopefully I am in the right area.

Seems to be no new information at all on this well.  

Don't expect to see anything on this well until the rig is long gone from the location. Any logs run will take a long time to be filed with the state. And IF (and big if) casing is set and any testing is done, those details will be kept confidential for months (or longer).

The best info that can be gotten on this well is tied to observations in the field. For example, when logging trucks arrive, more casing being brought to location, cementing trucks to location, wellhead set up once rig is gone, etc.


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