Union Parish, LA
All things pertaining to natural gas exploration in Union Parish.
How to Find Update on Union Parish Drilling Application
Back in July 2014, the law firm of Gordon Arata submitted a request (pre application notice) to create an "additional 1280 acre drilling unit" in Union Parish lower Smackover Zone, Reservoir A, SUI, ORA field. This was on behalf of SWN. Attached is a copy of the request and plat.
Oil%20lease%20in%20Farmerville.pdf
I have land within this proposed drilling unit and received initial notice of the hearing, but have heard nothing since.
Can anyone help with finding an update on any activity? I had adopted a wait and see attitude assuming that activity is unlikely with the current price of oil. However, with the post today regarding the "New Tick Creek Unit Applications" it got me to wondering if maybe SWN is moving forward on new drilling operations.
Just curious.
Skip Peel - Mineral Consultant
Ben, the application was approved as Field (Ora) Order No. 136-C-8. Use this link. The field order should look identical to your application notice.
http://ucmwww.dnr.state.la.us/ucmsearch/UCMRedir.aspx?url=http%3a%2...
There is currently no well drilled in that unit and no permit for a future well at this time. However SWN could permit, drill and produce a unit well that would hold the leases underlying those 1280 acres. A unit order is effective indefinitely and has no requirement for an operator to drill a unit well. The lease terms and their expiration dates are the most important consideration as unitization, a field order, does not hold leases in force without operations or production. The new unit applications in the Tick Creek Field could/might indicate that SWN intends to drill a unit well before those leases expire. It is a relatively simple and inexpensive process to form a unit but it does provide some real advantages for an operator.
As much as we would all like to see SWN get to drilling again in the Lower Smackover I always find these very large units of concern for mineral lessors who might have their development rights held by a vertical well. The only logical reason for a 1280 acre unit is for horizontal development....unless of course you are the operator and want to hold as many leases with the least possible cost..
May 20, 2015