Kansas Farmout - Horizontal Wells

State:
Multi-State
Control #:
US-OG-704
Format:
Word; 
Rich Text
Instant download

Description

Should any Party elect not to participate in any Horizontal Exploratory Well, other than the Initial Well proposed under the terms of the Agreement, the non-participating Party agrees to farmout to the participating Parties its interest.

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FAQ

Horizontal wells not only increase the exposure of pay zone but also help avoiding the gas and water coning problem by providing the less drawdown pressure. Other major applications of horizontal drilling are related to naturally fractured tight reservoirs, thin dry reservoirs, and less wells needed to develop a field.

The two main advantages from horizontal wells are: a. more effective drainage of the reservoir (i.e. increased overall reserves recovery) b. reduced water and gas coning. The drainage of a reservoir is increased by horizontal drilling through increasing the amount of reservoir that is exposed to the wellbore.

Advantages of horizontal wells Increased production rate because of the greater wellbore length exposed to the pay zone. Reduced pressure drop around the wellbore. Lower fluid velocities around the wellbore.

The majority of these wells have a production rate ranging between 15 and 100 barrels of oil equivalent per day.

A horizontal well is a type of directional drilling technique where an oil or gas well is dug at an angle of at least eighty degrees to a vertical wellbore.

Horizontal drilling allows operators to efficiently produce energy resources while using fewer rigs and occupying less surface area. Wells can be drilled as much as 10,000 feet (approximately two miles) underground and another 10,000 feet (or more) horizontally- or lateral.

Horizontal wells allow increased reservoir contact area, i.e., increased productivity over vertical wells. Horizontal wells may also reduce coning tendencies in reservoirs with bottom water or top gas because of a low pressure drawdown around the wellbore.

Horizontal wells are used in situations where the reservoir is abnormally shaped, or excavation is impossible. Horizontal drilling is preferred over vertical drilling due to its ability to access subsurface reservoirs that are not accessible from directly above.

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Kansas Farmout - Horizontal Wells