For Section 11, Blk 3, H&GN, Reeves.
Division order language is: “. . . as to that depth interval from the top of the Bone Spring Lime formation to 600 feet below the top of the Wolfcamp formation.”
The well in question, Kath Unit 3-11 656H, is in Phantom Wolfcamp and is at depth just below the Bone Spring.
There is a Pugh clause in my lease that states, “. . . the depths down to and including one hundred feet below the base of the deepest formation then producing in each said unit.”
At the end of the primary term and when the Pugh clause kicks in to release the lease (due to no more drilling, etc.) what am I going to get back assuming no more wells are drilled deeper than this one in question?