Missouri 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

The length of the horizontal section, or lateral, can range from a few hundred feet to several miles. Hydraulically fractured horizontal wells have accounted for most of all new wells drilled and completed since late 2014.

Horizontal drilling is the process of drilling a well from the surface to a subsurface location just above the target oil or gas reservoir called the ?kickoff point?, then deviating the well bore from the vertical plane around a curve to intersect the reservoir at the ?entry point? with a near-horizontal inclination, ...

Missouri Dept. of Natural Resources requires that all contracted drillers who charge a fee for their services have a permit to construct a well. However, landowners are exempt from obtaining a permit for digging a well on their own property as long as all well regulations are adhered to.

Typical time: Each well can be drilled in 14 to 25 days. Rig mobilization in and out takes approximately 2 to 3 days. A rig may be on site to drill multiple wells extending the time by 14 to 25 days per well.

A minimum of 80 feet of casing should be used for all wells. The Missouri Well Construction Rules state, "All wells shall be watertight to such depth as may be necessary to exclude contaminants. A well shall be constructed so as to seal off formations that are likely to pose a threat to the aquifer or human health."

Now, drilling machines can dig between 200 to 300ft per day, so you need around two or three days to complete the process. However, some factors could slow down the drilling procedure, like having to bore through underground rocks.

Horizontal directional drilling costs $10 to $30 per linear foot on average, depending on the location and project type.

Oil was discovered in Missouri shortly after the Civil War when water wells were being drilled near Kansas City. Although Missouri has limited supplies of traditional hydrocarbons, relatively large deposits of ?heavy oil? exist that are of increasing interest to producers.

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Missouri Farmout - Horizontal Wells