Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on April 1, 2012 at 13:05

S30-17N-12W is an EnCana Haynesville Drilling Unit.  There is no well.

Permalink Reply by James Collins on April 2, 2012 at 6:58

Thanks for the reply and information.  Since a Unit has been established would it be safe to assume that they are looking to drill? or do the companies regularly set up units so they are established when they decide to drill.

Permalink Reply by Skip Peel - Mineral Consultant on April 2, 2012 at 8:12

In the Haynesville Shale Play the general strategy was to apply for the unit before permitting and/or drilling a well.  This was because the shale was considered to be continually productive over large aerial extents.  That's generally different from unitization in conventional reservoirs where operators waited to complete a successful well before applying for a compulsory drilling unit.  A drilling unit is in effective indefinitely until dissolved by a subsequent unit application.  There is no requirement to drill any wells in a given length of time.  Lease terms covering minerals within the unit boundary have more to do with when and whether a well will be drilled.  EnCana may decide to drill prior to those leases expiring or they may decide to allow the leases to lapse.