Replies to This Discussion

Permalink Reply by Kathleen on June 12, 2012 at 4:15am

As an example go to the columbiana county groups and pull up the Trebilicock well thread. When you click on one of the drawings look at the upper right corner of that drawing. I'm pretty sure that shows the pad and where the holes are on the pad.
Also if you look close enough at the actual drawing you will see surface location either to the left or right of the entry point. You really have to look to see all of that on the drawing. On one you can even see where the next hole is going to be since it says permitted. I always have to give the drawing a minute to sharpen the image if I zoom in.

Permalink Reply by Utica Shale on June 12, 2012 at 5:53am

Teri,

 Technically, the Production Unit must be drawn a certain distance around the HORIZONTAL Pipe when that pipe is in the Utica-TBR-BR formation - the Drainage Area. Note: There is no requirement to include the Surface Pad if there is no drainage by a Horizontal Pipe within 500' of the Vertical Pipe or Pad. The Vertical Pipe is typically not a Drainage Pipe. The Vertical Pipe simply moves the gas/liquids from the Horizontal (drainage) Pipe just like any other natural gas pipe buried in the ground. The "Surface Location" (Vertical Pipe going in the ground) and the Entry  Point (Horizontal Pipe entering the formation) are typically within 550', so most or all of the pad is usually included in either one or two PU's. If the Surface Location and the Entry Point are farther than 550' then we will have to wait & see what CHPK actually does.

 

 I suggest though, if half of the pad is in the South-East Production Unit then most likely the other half of the pad will be in the North-West Production Unit. I have yet to see a drawing where the pad was totally excluded from a PU, although it is possible if the curve from Vertical to Horizontal is very gentle.

 

Permalink Reply by Teri on June 13, 2012 at 12:46am

Thanks for the information. 

Permalink Reply by Utica Shale on June 13, 2012 at 1:31am

In the old days, the Vertical Pipe was the drainage pipe.  Therefore, the Production Unit (PU) always surrounded and included "the pad area".   With the newer Horizontal wells the drainage area could be far enough away from the pad area as to not be included in the PU.  But why would the Driller design all of the Horz Laterals from the pad such that not one of the Horz Laterals drained the Gas & Oil directly under the pad? Seems like a waste of acreage and profits to me? Also, if the 640 North-West acreage and the 640 acre South-East acreage is all combined into one giant 1,280 acre PU (some leases allow this) then the pad in the middle must be included whether it is drained or not.