Replies to This Discussion

Permalink Reply by Herman (Chuck) Plonnigs, III on May 2, 2012 at 9:51

Question: “In other words the unit well and this aligned alternate unit well actually take up the spacing of one future alternate well.  Leaving room for 7 more alternate unit wells.”

I have previously asked a question on drainage and was told at this point they didn’t have the “science” to know the number of wells that would be required to economically drain a section.

I’m sure I’m missing something in the above quote (and I really don’t like being unintelligent) but the way I’m reading the quote we are observing 8 wells would effectively/economically “drain two sections.

I fell I’m probably missing the true meaning or “alternate”.

Permalink Reply by Skip Peel - Mineral Consultant on May 2, 2012 at 10:39

Chuck, there is no reason to form a unit two sections (miles) north to south unless the operator hopes to eventually drill horizontal laterals of ~9900' (10,560' less two 330' setbacks, one on each end).  Otherwise they would just form units of a single section.  The L SMK units are being formed on the basic principle that the Department of Natural Resources/Office of Conservation has used in all unconventional reservoir units formed for horizontal wells including currently in the Tuscaloosa Marine Shale.  Perforation points may be no closer to a unit boundary than 330' and no closer than 660' from the perforation point in an adjoining horizontal well.  This sets up as 8 wells per mile of width (5280' divided by 660' = 8). Now whether this is the most efficient drainage pattern remains to be seen.  Some Haynesville Shale operators were toying with the possibility of 40 acre spacing before the bottom dropped out of the nat gas market.  Of course they had drilled a few hundred wells by then and had a lot more knowledge of the formation.  There are likely some Haynvesville Drilling Units by now with 8 Haynesville wells and 8 Bossier Shale wells as the depth definitions in those units include both shales. 

Permalink Reply by Herman (Chuck) Plonnigs, III on May 2, 2012 at 11:04

Skip…this is going to be cut a pasted into my “oil folder” and is going to require a bit of study on my part. This has been my second Monday this week…no attempt at making excuses!

 

You’re knowledge is apparent and is greatly appreciated. There is no way to appropriately thank you for your time and consideration.

 

Maybe one day we will met and I’ll buy you a hot chocolate…I’ll take the beer, I don’t know where you stand on such things…so I’ll leave it at that

Permalink Reply by The_Baron on May 3, 2012 at 3:10

I think they are simply ussing the excuse of long laterals to get larger units to be the norm and hold acerage.

 

Please note that SWN took extensive state leases in their fairway, which is obvious from their drilling program of following those leases downstream as the bayous flow. Historically, oil units were always much smaller than gas units, so I beleive the push for 1280 units is simply a lease strategy. I wish that DNR would have forced SWN to stick with 640 acre units or smaller, they could still have long units spanning two sections, but narrower.

Permalink Reply by Aubrey C. Sanders, Jr. on May 3, 2012 at 4:03

Baron, as you know all operators would like to see the entire globe in one drilling unit, so long as it controls that unit.

I would point out, as you know, that theoretically a single well should be capable of draining one unit. However, due to geologic conditions alternate and/or substitute unit wells can be approved. This is most appropriate.

At present XTO is drilling its  8th well in a 320 acre Smack "C" unit which covers the S/2 of S11, T23N, R9W. The Formby well should TD today at 11,000+ ft. Well was spudded last Friday. Awesome how fas they can drill.

Since I own WI I hope they are through drilling in that unit which has been under production since about 1955.

Permalink Reply by The_Baron on May 3, 2012 at 8:54

Last I checked the Bakken and Eagleford were not in Louisiana

Permalink Reply by flex auger on May 3, 2012 at 5:32

Unless it is somehow to hold some leases, i dont understand why a unit would be anything other than a govenmental section of 640 acres. The commison ruled here in the fayettville shale that only the first well drilled in a section had to stay within the section, subsequent wells could cross as many section lines as they pleased, they just pro rate how much drainage each section incurs and they pay accordling. I have wells that i get as little as 7% of some 60, 95, and 100%. I am sure lately they have approved some exceptional locations and let the well start outside the target section as long as it recieved the lions share. Seems like it would make it alot easier on keeping records and such. I also thought that if you were "surrounded" by leased lands you had to be eventually intergrated into the "pool"  even if you didnt want to be.

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