OKLAHOMA CORPORATION COMMISSION
OIL & GAS CONSERVATION DIVISION P.O. BOX 52000 OKLAHOMA CITY, OK 73152-2000
(Rule 165:10-3-1)
API NUMBER: 065 20266
WELL LOCATION: Approval Date: 07/17/2012 Expiration Date: 01/17/2013 Sec: 35 Twp: 3N Rge: 22W County:
JACKSON SPOT LOCATION: NE SE NE NE FEET FROM QUARTER: FROM SOUTH FROM SECTION LINES: 1655 330 EAST
Lease Name: MERL 35 Well No: 1
Operator Name: HEIGHTS ENERGY CORPORATION Telephone: 9723780304 OTC/OCC Number: 23012 5801 TENNYSON PKWY STE 300 HEIGHTS ENERGY CORPORATION PLANO, TX 75024-6170
Formation(s) (Permit Valid for Listed Formations Only):
STRAWN 3773
CANYON 3226
PERMIT TO DRILL Spacing Orders: Special Orders:
Total Depth: 4600
Ground Elevation: 1409 Surface Casing: 170 Location Exception Orders: Pending CD Numbers: Depth to base of Treatable Water-Bearing FM: 80 PIT 1 INFORMATION Type of Pit System: Type of Mud System: Pit is not located in a Hydrologically Sensitive Area. Category of Pit: Liner not required for Category: 2 Pit Location is NON HSA Pit Location Formation: FLOWERPOT 2 ON SITE WATER BASED Chlorides Max: 5000 Average: 3000 Is depth to top of ground water greater than 10ft below base of pit? Within 1 mile of municipal water well? Wellhead Protection Area? N N Y Approved Method for disposal of Drilling Fluids: Under Federal Jurisdiction: No Fresh Water Supply Well Drilled: No Surface Water used to Drill: No Notes: 242467 A. Evaporation/dewater and backfilling of reserve pit. Straight Hole Oil & Gas Increased Density Orders: Well will be 330 feet from nearest unit or lease boundary. This permit does not address the right of entry or settlement of surface damages. The duration of this permit is SIX MONTHS, except as otherwise provided by Rule 165: 10-3-1. Rule 165: 10-3-4 (c) (7) (e) - The Operator shall give 24 Hours notice by telephone to the appropriate District Office of the Conservation Division as to when Surface Casing will be run.
2 065 20266 MERL 35 1
Looks like the move to oil is getting wide spread NGL’S and dry gas not economic.
Pecan One,
Agreed. We've got room for a lot more rigs. Lack of water may be a problem!!!!
Clint Liles
My understanding is, the well straight south of Elmer on the Round Timbers Ranch hit a huge salt water table...so large that they are hauling round the clock to the Elk City area to use in injection.
In that country, finding water is not the problem...it's finding good water that is. In all the years I farmed down there, you could punch a well anywhere & hit water but it was so hard it was hard to stomach.
Lee
Lee,
I understand what you're saying about plenty of bad(gyp or salty) water. On my ranch we have a large area where the mesquites are scraggly and don't do very well. Another portion of our ranch the mesquites are healthy looking and grow quite well. My brother suspected there was water below the healthy mesquites, so he took a track hoe and dug down about 12 to 15 feet and hit good water below them. Lots of water sand also. He has contacted Anschutz about selling some water.
Clint Liles
Clint/Lee,
My brother-in-law is a civil engineer and did resistivity testing at the farm. Showed good sand sitting around 160 feet down. Need to get ahold of good water well driller and see how much per foot to do a test hole. Have 3 good sites showing good sand. Had a well on farm years ago drilled to 32 ft it was all gyp, could not use it to irrigate.
Water seems to be the problem all over the state, Having to build large ponds up in Canadian county to recycle.
Patrick
I worked the 1,200 acres on the west side of hwy 283 just north of Red River. Water well drillers down there would go down to the "red bed", on my folks place that was about 45' & you had all the water you wanted, just hard as "he**". In the hot part of the summer. if I watered my alfalfa during the day with a blistering wind, the water would actually burn the leaf tips.
Lee,
We are chewing and the same dirt. I six miles north of the river and 2 miles west of 283. Just one mile north of Elmer cemetary. My father-in-laws land working it for his daughter(my wife) and her mother.
Pecan One/Lee,
It's like the desert southwest(Nevada, Arizona, and New Mexico are closing in on the western and north western part of Texas. Desolate from a terrible lack of rainfall and getting worse every year. Yeah, farming is easy. Just plant the seed and Mother Nature will do the rest. Well, that's not quite the way it works. Sometimes Mother Nature won't cooperate. These folks that depend on their pasture land to feed their cows all year long may come to realize that a lack of rainfall might put them out of business. It might be good to have a few flowing wells on that property to supplement their income. But then I know of some in Wilbarger County that refuse to let anyone drill on their property. That oil company will be welcomed on my property. Thank you.
I feel that a lack of water is slowing drilling in the Hardeman, Wilbarger, Jackson, Tillman and Harmon Counties.
Clint Liles
Clint,
My father-in-law said it would become a precious commodity and his statements are coming true. It is all about the water. Back to oil and gas; JTD resources had one filed in same area and dismissed at docket, think they did not follow rules properly. Heights is still on like listed above.
Patrick
30 years ago, T. Boone Pickens commented that someday water would be more valuable than oil.
I bet T Boone likes a little of that water with his bourbon. I can see his smile now.
Clint Liles
In the 70's he bought, if I remember correctly, about 1/2 a million acres of minerals in the south plains of Texas where little or no oil or natural gas exploration had been successful...he wanted it for the water rights. Long story short, Lubbock has been running out of water for years, they filed suit to apply eminent domain on Boone's minerals...went to the Supreme Court & two years ago the justices said no to Lubbock, eminent domain does not apply to subservice minerals, pay Boone!
They had to cut him a check for about $230,000,000 to lease the "minerals"; when they hit & start pumping water, pay him again for the water! I think I will e-mail him to see if he would be interested in adopting me.
Clint Liles said:
I bet T Boone likes a little of that water with his bourbon. I can see his smile now.
Clint Liles
Lee,
Hey brother, maybe he would adopt both of us. $230,000,000, WOW--Plus more on the way every time Lubbock turns the tap. Some people have all the luck. Just a tad better than farming.
Clint Liles
Pecan One, I had a young lady by the name of Norma Alexander from Washington State contact me about leasing activity in the 9 mile hill area. Her # is (569) 269-4340. She has family minerals left to the north of Gry Winsett's place & was wondering if any interest had been in evidence around that area.
The Alexander family goes "way back" in the area north of Elmer.
Pecan One said:
Looks like the move to oil is getting wide spread NGL'S and dry gas not economic.
Lee,
I have known the Winsett's since marrying my wife but the Alexander name is not familiar. When the leasing went crazy back in 2009/10 around Eldorado my father-in-law instructed OKKI (Leasing Company) that they could have the Eldorado lands and south river lands only if they took the farm in the lease. So I am under lease to them untill 2013. I only have one small acerage that is up this year.
Patrick