Can anyone explain this to me? I’ve researched and see that it’s done on some well. Here is my concern. Our lease was recently purchased from Helis and sold to Silo Resources. I now receive notification from an attorney in Wyoming stating that a well is going to be flared. When it notes the well, it appears to be a proposed well that I have not received paperwork on yet. 16-63-6-7-18 CH5 16-63-6-7-18 CH1/CH2 and CH3 are active wells and have both oil and natural gas being pulled. I’m not sure what this means for me or the other wells exactly. Any input?
Oil can be put into a truck and hauled away from the wellsite. Gas cannot. It requires a pipeline. Often, new wells are drilled in an area where there are no pipelines. In those cases, the only way to produce and sell the oil is to flare the gas. There is no way to produce the oil without the gas. The gas must be burned for safety and environmental reasons. Since the Operator isn’t getting paid for the flared gas, neither will you. If there is enough gas, a pipeline may eventually be built, but there would have to be enough gas to economically justify building it. You can be sure that the Operator would much rather be selling the gas if there was any way they could, especially at the current price.
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