Hey Texans,
I live in Canada, and I’ve invested in a small Junior O&G company operating in the Permian. They have recently revealed that they plan on drilling their first well. I stumbled upon their permit application on the oil and gas webapps site and it was for an 11000’ convention well. awesome news! but, about a week later, I see that it’s been denied with the following message:
Please refer all questions and/or resolutions to the following email address: problemw-1s@rrc.texas.gov. Please review your W-1 and take the appropriate action to resolve all problems. OIL AND GAS DIVISION RAILROAD COMMISSION OF TEXAS
- Your filing has been identified with possible SWR 40 double assignment of acreage problems. Please review your filing. If you have any questions concerning SWR 40 please refer to the Texas Administration Code, SWR 3.40. This can be accessed from the RRC home page under the rules tab. Navigate to current rules Chapter 3, Oil And Gas Division, for more detailed information. All work on this application will be suspended until all questions have been answered and/or questions submitted via email address provided. THERE ARE TWO LEASES WITHIN YOUR LEASE AREA THAT HAVE WELLS IN THE SPRABERRY (TA) FIELD. YOU HAVE A LEASE THAT IS SHALLOW AND THEN THERE IS A LEASE OPERATED BY DIAMONDBACK THAT IS AT A DEEPER DEPTH IN THE SAME FIELD. YOUR DEPTH SEVERANCE APPEARS TO BE INCORRECT.
it’s probably no big deal, but my fear is that this company purchased some property and they didn’t realize that they don’t have the rights they thought they did.
I’m unfamiliar with Texas o&g laws so any help would be appreciated!