Section 30 6N 3W

Last month, the OCC issued Order 705289, which included this language: Deferred Election as to the Mississippian and Hunton Separate Common Sources of Supply: Applicant’s initial well is a multiunit horizontal well targeting the Woodford common source of supply. Unless an owner makes no election at all or the owner elects at the time of the initial election due within 20 days of this Order to receive one of the options set forth above as to the Mississippian and Hunton separate common sources of supply, that owner shall have a deferred election as to the Mississippian and Hunton separate common sources of supply. Such separate deferred election is to be made within 20 days of a receipt of notice of intent to spud the initial well targeting the Mississippian or Hunton common source of supply. Owners electing to participate must pay, or make satisfactory arrangements with the Operator to secure the payment, of their proportionate share of the estimated completed well costs within 25 days from the date of receipt of notice from the Operator. Those owners failing to elect within the period provided, or those owners electing to participate but failing to pay their share of the estimated well cost within the period provided, shall be deemed to have elected not to participate in the initial Mississippian or Hunton targeted well and such owner shall be deemed to have elected to accept, inclusive of burdens, the highest cash bonus for which, because of burdens, such owners interest qualifies as set out in paragraphs 2b, 2c, 2d or 2e, with the bonus consideration allocated as set out in paragraph3 hereof.

Can anyone interpret this for me? I’m held by production in that section by the recent drilling of the Captain Jack well to the Woodford. I have a depth clause so wondering if by treating the Mississippi and Hunton as separate units, we will be able to lease again. Thoughts?

If you have a vertical depth clause in your lease the pooling has no effect on your interest. The Woodford is deeper than the Mississippi so that is HBP by the Woodford well. The Hunton formation isn’t productive and is named only because the horizontal wellbore may wander & penetrate it inadvertently. In short, you are HBP from the surface to base of Hunton formation.

Thanks for the clarification.

This topic was automatically closed after 60 days. New replies are no longer allowed.