HOW IMPORTANT ARE ACCESS ROADS TO LEASING AND DRILLING?

After hearing about people that have signed leases and later had their leases dropped by oil companies, I am wondering how important is it to have roads close by or penetrating into a proposed drill unit? Do roads play a large role in deciding where drilling units are placed?

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Permalink Reply by Area Man on March 9, 2012 at 9:36am

First and foremost, an operator must have a leased position in order to drill so that is first priority.  To answer your question (as far as I know at least) NO road access has no bearing on leasing efforts unless you are a VERY small operator and looking to only put in 1-2 wells.

However, once the leases are in hand, you select a pad location based on a number of factors and YES road access can influence that process.

Hope that helps.

Cheers!

Permalink Reply by Utica Shale on March 12, 2012 at 3:16am

Jodi,

 We went to the Anadarko location in November.

 We did see that some road construction activity had occured.

 I did find the Pink Ribbons on stakes that indicated where the pad could be built.

 Actually there were three differnet potential locations for the Pad staked out.

 Back then roads were still in extremely rough shape.

 

 

Permalink Reply by Kathleen on March 9, 2012 at 2:38pm

The Pad by Trinity Church road has that same type of set up for the drive.  I drove in a little the other day to take a peek.  It was up and to the right to go to the pad or up and to the left for the house.

Permalink Reply by oildude on March 10, 2012 at 3:01am

A hypothetical question: If a driller forms a drilling unit and there is an area with roads criss-crossing it, would they be likely to TRY to form the drilling unit around this area so that they can put the drill pad next to existing roads or are they prepared to spend the money to make their own roads into fields and woods?

Permalink Reply by Area Man on March 10, 2012 at 4:33am

The unit will likely be based on lease position - however the drilling pad would DEFINITELY be placed as close as possible to infrastructure (roads, pipeline, whatever saves money).

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