Are these two Spacing Applications in conflict or are they for different depths?
CD2026-002336 “An Order approving a multiunit horizontal well (the TBD 1H-20-29 well)
in the 640-acre horizontal drilling and spacing unit(s) formed for the Cherokee common source(s)
of supply in Section(s) 20 and 29, Township 14 North, Range 17 West, Custer County, Oklahoma
so as to allow such multiunit horizontal well to be drilled as described in Paragraph 2(D) above
and to be completed in and to produce hydrocarbons from the above-named common source of
supply.”
CD2026-002466 “That Applicant requests that the Commission enter its order establishing a 1,280-
acre horizontal drilling and spacing unit for the Des Moines common source of supply
underlying Sections 29 and 32, Township 14 North, Range 17 West, Custer County, Oklahoma”
The Des Moines Series includes the Cherokee Group. How will this be resolved?
CD2026-002336 is a multiunit horizontal well application targeting the Cherokee across Sections 20 and 29.
CD2026-002466 is a spacing application seeking a 1,280-acre horizontal unit for the Des Moines underlying Sections 29 and 32.
The potential confusion comes from the fact that the Cherokee is commonly considered part of the broader Des Moines Series. However, Oklahoma Corporation Commission orders are generally issued by specifically defined “common sources of supply,” not broad geologic series names.
If Anthem is defining the Des Moines common source of supply separately from the Cherokee common source of supply, then both orders could coexist and both wells could be drilled at different stratigraphic intervals.
The OCC routinely allows multiple horizontal units in different common sources of supply under the same acreage.
The key question is whether the OCC considers the Cherokee interval being targeted by Oil Capital to be included within, or separate from, the Des Moines common source of supply requested by Anthem. If the OCC determines they overlap, one of the applications may need to be modified or clarified. If they are treated as separate common sources of supply, both applications will likely be approved.
My guess is that the OCC will resolve this through testimony and geological evidence defining the exact producing interval for each application rather than forcing one operator to abandon its filing.