How long can an oil company delay completing a well declaring it a shut in producer?
Jeff,
Better check with a lawyer. In my experience a well can not be a "producer' until it has been proven a producer by testing a completion. A well "waiting on Completion" should be a rarity in these economic times and probably subject to state regulation including permitting. If you are in a contract, the definitions in the contract will usually prevail.
I might be wrong, but generally a well cannot be shut in unless it has been completed.
You might want to read your lease carefully for what triggers a shut in. Your lease will provide the answer.
There are many DNC wells, meaning Drilled, not Completed. These wells will generally be in the primary term.
Best,
Buddy Cotten
One of my older documents says "Shut In" - can someone tell me what "shut in" means?
There are 3 capped wells and one producing (next to nothing for years.) There is a plan now to drill a horizontal and they say on the same lease.
Shut In Well
A well which is capable of producing but is not presently producing. Reasons for a well being shut in may be lack of equipment, market or other reasons.
Clint Liles
Thank you!
Jeff - I would start with this, and then go from there: Has a 1002A form been filed & accepted by the Oklahoma Corporation Commission?