Replies to This Discussion

Permalink Reply by Les Bamburg on April 22, 2010 at 9:48

The drilling permit and well plat are attached.

Attachments:

• Wiley Hunter 32 H1 Well.pdf, 123 KB

Permalink Reply by Papa Smurf on May 28, 2010 at 13:35

Does anyone know why drilling was started, then stopped. Status is waiting on new rig. I know what waiting on new rig means, just wondering why. It this normal?

Permalink Reply by Les Bamburg on May 28, 2010 at 18:22

PS, EnCana has been "spudding" their wells in RRP with a small truck mounted drilling rig that only installs the surface casing (~ 2000 ft). EnCana returns days or weeks later with the "real" rig to actually drill the well. This approach saves them time and costs.

By chance I happen to see the small rig (Pinnergy #5) on this location.

http://www.pinnergy.com/surfacecasingdrilling.htm

Permalink Reply by Papa Smurf on May 28, 2010 at 23:28

Thanks Les, I knew you would know.

Permalink Reply by R B on May 29, 2010 at 16:44

Hi Les-

Thanks as always for valuable information. Does the "spudding" process as you describe (installing the casing with the small rig) qaulify for being "held by production", or does that occur when the actual drilling of the well begins? Or is it when the product starts flowing to sales? Thanks again for helping this novice out with your time and knowledge.

R B

Permalink Reply by Les Bamburg on May 30, 2010 at 3:09

RB, only gas production flowing to sales will hold a lease long term after the lease expiration date. The production can be from the lease or from the unit that includes the lease.

Most lease agreements include a provision that covers the situation of a well being completed within 90 before lease expiration or being engaged in drilling operations at the lease expiration date. The provision basically extends the lease for 90 days from the completion date of the well. There are also references to continuous operations. So my interpretation is the operator has some limited period of time after drilling the well to frac and complete the well if after lease expiration.

Finally, if the operator has a well capable of producing "in paying quantities" but is waiting on a pipeline or treating facilities, the lease will remain in effect.

So, I do not think the spudding with the small rig buys the operator any time. My opinion is the operator has to get the large rig on the well before lease expiration and drill the well to trigger any of the lease extension provisions. Those provisions are limited in nature and are intended to allow the operator to finish a well that was started before lease expiration.

Permalink Reply by Papa Smurf on June 1, 2010 at 9:22

Let me get this straight. Surface location is the sight of the drilling and bottom location is where the gas will be pulled from? If so, the wiley hunter #1 in Sect 32 T13N R8W has a different serial number than the 241167. The serial number at that location matches the one for Sect 29 T13N R8W. Maybe one day, I will get this figured out.

Permalink Reply by Les Bamburg on June 1, 2010 at 9:46

PS, the following two wells both have a surface location in Section 32. The wellheads will be located ~ 45 ft apart once drilled. As you said, Ser #241086 will have the horizontal lateral drilled into Section 29 and those mineral owners will share in the production from that well.

EnCana, Wiley Hunter 32 #H1 Well, Serial #241167, S32-T13N-R8W
EnCana, Wiley Hunter 29 #H1 Well, Serial #241086, S32(29)-T13N-R8W

Permalink Reply by Papa Smurf on June 14, 2010 at 14:17

Well here I go again. Went by the surface location. The sign says Wiley Hunter 29#H1 Well, Serial #241086. If you check SONRIS the status of that well is waiting on another rig. The Wiley Hunter 32#H1 well shows drilling. Either the sign is wrong or SONRIS is wrong. Oh, who to believe?

Permalink Reply by Les Bamburg on June 14, 2010 at 15:20

PS, yes - confusing information in direct conflict. Oh well I changes the information to be consistent with Sonris.