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Permalink Reply by Grice on November 23, 2008 at 23:06

yes. There are many scenarios which may be in place, but a common one is the capabilities of the operator. If operator A charges 2.00 per foot (but did not have the means to drill horizontal), and operator B charges 5.00 per foot (but had the ability to drill horizontally) , it would make economical sense to hire operator A to drill the vertical section of the well, and hire operator B to drill the horizontal section. Why hire operator B (at 5.00) to drill the vertical section, would I could save money by paying operator A (2.00) to do the same work? Horizontal drilling is relatively new technology, and some operators may not be suited for such activity, while other operators (who are suited) may charge a higher fee for their service.

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Permalink Reply by The_Baron on November 24, 2008 at 4:24

They may have been short on horz. rigs and needed to start operations (to hold leases by drilling/completing operations).

Or, they may have wanted to use a cheaper smaller rig to drill a pilot hole and see the log and cores before spending another 6 million to drill horizontaly.

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