I'm being told that this is a "LEASE WELL" and that ONLY the actual property owner will benefit from this type of well. Has anyone heard of this and if so, what exactly is a "Lease Well"?
A well can be permitted and produced as a lease well as long as it complies with LOC spacing and set back regulations. When you see a HA lease well permitted it is classified HA "non-unitized" or HA "non-unitized stringer". It is not unusual to see a non-unitized well permitted and drilling prior to an application for a HA Drilling & Production Unit covering that particular section. When a unit order is obtained, the operator will force pool all the mineral interests in the unit and they will all participate in the production of that well.
This a very small location. Possibly the smallest I have ever seen. Don't think it will be a horizontal. Don't look to promising. Hopefully saving the good stuff for my section.
The well is drilling at about 8450' as of 6/7/2010. Permitted to 15,000 as a straight hole, which is rather surprising. It is BEUSA. It is now permitted as HA RA SUTT.
I guess Beusa is waiting for the casing to cure on the Montgomery well because after the rig left it is a ghost town. With most companies the coil tubing rig meets the kelly in the road and has to move over just a little bit and let them by. Shortly after the coil rig comes out of the hole, them ole boys with wireline show up, run a gauge and log it. Then the shoot some perfs and get the party started. Beusa stinks