Surface Hole Location

OK, hopefully someone can clarify this for me… so we have a well drilled on our leased interest near the southern boundary of the section we own in (sec 7), and the horizontal extends North into 6 which we do not. A second well was drilled next to the 1st one also in sec 7, but extends South through sec’s 17 & 20, also which we do not have interest. The oil comp division order specialist says we will receive a DO for the 1st well, but not the second…I’m confused as both surface holes are in sec 7 in which we hold interest.

You should review the permits and completion reports. The location of the well for a horizontal well does not mean that you are in the well. The question is where the frac points are located along the horizontal wellbore. If any frac points are under Section 7 or if Section 7 is included in a unit, then you will be in the well.

Thanks, that helps… it appears that the 2nd well is in a different unit, even though the surface hole is in our section, and the section boundary is only 300 feet from the well surface hole, so I’d doubt that any frac points would be that the well head?

In this case two sections are grouped together to form a spacing unit for a well. Sections 6 & 7 are pooled for the first well drilled northward and you will obviously share in that one since you own under Sec. 7. Sections 17 and 20 are pooled for the second (southward) well. So even though the drilling begins in Section 7, no part of the productive portion of that wellbore will be located under section 7. To do so would require a highly irregular L-shaped three section spacing unit which simply would never be allowed as it wouldn’t facilitate orderly development.

Thanks, I’ve got it now! Most of my knowledge of this stuff came from my dad, who was a Landman/Broker for many years…back before these new-fangled horizontal wells!