I don't understand how my deep lease can operate without the shallow operator's participation.. can someone please "splain to lucy"?
A shollow lease typically has the rights to produce from the surface down to a specific formation or zone, or to a specific depth. A deep lease typically has the rights to produce below a specific named formation; they certainly must drill through the shallower formations, but they may not produce from them. When oil/gas wells are drilled, casing is run and all formations cemented off. They then perforate the casing for the specific formations they are interested in producing.
I hope this answers the question you are asking.
This helps.. thank you.. I have shallow lease producing now and an offer for a deep lease with a different operator on the same land. I was confused as to how that worked.
What is the upper depth limit of the "deep" lease? Does it also have a lower limit, and if so, what is it?
the lease states 1000 feet subsurface and below..
Jerry Lobdill said:
What is the upper depth limit of the "deep" lease? Does it also have a lower limit, and if so, what is it?
Joanna,
There are at least 7 formations below 1000 ft in Hockley county that may prove productive using horizontal drilling and fracking techniques. Your lease gives them access to all these possibilities. What's the G2 on the likely target play?
Jerry,
Actually the lease in question is for Archer county.. My lease in Hockley is held by Oxy and is shallow and
deep.. has been for generations and we have lost out on a lot of money due to the way the old leases were allowed to be ongoing whether they drilled new wells or not as long as there was a producing well.
Jerry Lobdill said:
Joanna,
There are at least 7 formations below 1000 ft in Hockley county that may prove productive using horizontal drilling and fracking techniques. Your lease gives them access to all these possibilities. What's the G2 on the likely target play?