Drilling was completed earlier this year by Newfield and now they are going to drill additional wells on our production unit. Anyone have an idea on the strategy of drilling more wells? Are they able to extract more oil and gas or just get it faster? Thanks for thoughts.
Yes and yes. The first well holds the leases by production. After the operator determined that the reservoir was performing adequately, they often come back and drill more wells. You didn’t mention your section, township and range, but since it is Canadian and Newfield, I am assuming it was a horizontal well in one of the shales. The first well was most likely lined up on either the far east or far west side of the section. They left room for additional wells to line up like cigars in a box to drain the reservoir more completely. Horizontal wells only drain “about” 300’ feet in diameter away from the well bore. (Example only-depends upon the reservoir) So to drain the complete section(s), they need to line them up in order for the drainage pattern from one well to just barely intersect the drainage pattern from the one next to it. You don’t want to rob “Peter to pay Paul” too much, but you want to drain effectively. Think of fine tree roots of two trees slightly pulling water from the same aquifer. Similar concept. Also, technology improves over time, so they improve their fracs.
If you look at the exhibits that go with the OCC docket cases, you will probably find a map that illustrates what they are doing. Also, it is useful to go online and look up the investor presentation for your operator. They will often show nice displays. Newfield used to have really good ones. If the the current presentation doesn’t show them, then look up Continental Resources as they usually have nice concept pictures.
Thanks for the helpful information. It’s B&H MUEGGENBORG at 25 14N 06W in Canadian.
Do you have a copy of your lease. How do you know it was held by commercial paying quantities? Many so called vertical well production units were not commercial. Did Newfield violate the lease by asking the Commission to re-space or file increase density application?
You can find the well on the OK Tax site https://otcportal.tax.ok.gov/gpx/gp_displayPublicPUNListSearchDownload.php Type in 25 14N 06W in the legal location boxes. First production is May 2018. nice well at least the first month! You should get a Division Order in about October or November.