CAN THEY GO INTO A PRODUCING LATERAL AND EXTEND IT?

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Yes, but it is atypical.  And expensive, relative to the benefit.

Has it ever been done?

Time was when we had oil/gas men with real job experience here who would answer your question. Where have they gone?

Some have been chased off because certain posters accuse anyone in the industry of lying to them.  

Sad Dexter but probably true.
Well as they say... anything can be done if you have enough time or money. However I highly doubt any operator would go back in and extend a wellbore. It would be more cost effective to just drill a new well. First off the bit would be have to be small enough to fit into the current casing which could cause problems with completions and productions later down the line if it is too small. Also since the well was completed and fractured they would have to squeeze cement into the fractures to prevent circulation loss during drilling which would almost negate any positive to even lengthening the lateral. It's not impossible, but I don't see any reason why an operator would do it.

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