This provision is for an Agreement where there is the expectation that one or more horizontal wells may be drilled within the Contract Area. This section addresses the drilling of Horizontal Wells and that they shall remain the sole property and information of the Operator
New Mexico Proprietary Technology Horizontalel— - Restriction on Disclosure New Mexico's oil and gas industry has witnessed significant advancements with the advent of proprietary technology used in horizontal well drilling. This technology offers immense potential for maximizing production and recovery rates in the state's oil and gas reserves. However, due to the proprietary nature of these cutting-edge techniques, there are restrictions on disclosure to safeguard the competitive advantage of companies utilizing this technology. Horizontal well drilling, a technique widely used in New Mexico's oilfields, involves drilling wells that extend horizontally through the rock formations, allowing for greater access to hydrocarbon deposits. This method enables operators to effectively tap into previously inaccessible resources, enhancing production yields and optimizing the economics of various oil and gas projects. The proprietary technology associated with horizontal well drilling encompasses a range of innovative tools, equipment, and methodologies designed to enhance drilling efficiency, reduce operational costs, and maximize resource extraction. These technologies can include advanced drilling rigs, specialized drill bits, well bore navigation systems, telemetry and communication systems, advanced well completions, and intelligent reservoir monitoring systems, among others. Companies that have developed and employ proprietary technologies for horizontal well drilling closely guard their trade secrets to maintain a competitive edge in the marketplace. As a result, there are restrictions on disclosing specific details about these technologies, preventing intellectual property theft and ensuring that companies retain their competitive advantage. Although the specifics of each proprietary technology may vary, some common types of New Mexico Proprietary Technology Horizontalel— - Restriction on Disclosure include: 1. Advanced Drilling Systems: These proprietary systems utilize state-of-the-art drilling technologies, such as rotary steerable systems and intelligent drill bits, to enhance drilling accuracy, improve well bore placement, and optimize well bore trajectory control. 2. Reservoir Evaluation and Monitoring: Companies invest in proprietary technologies that enable real-time monitoring of reservoir conditions, including pressure, temperature, and fluid flow. These technologies provide valuable data for optimizing production and reservoir management strategies. 3. Hydraulic Fracturing Techniques: Proprietary hydraulic fracturing technologies involve unique fluid formulations, prop pant selection, and fracture design methodologies to maximize the efficiency of the fracture stimulation process and enhance oil and gas recovery rates. 4. Well Completion Solutions: Proprietary well completion technologies involve advanced completion techniques, specialized equipment, and chemical formulations aimed at optimizing production rates, reducing formation damage, and improving the overall well lifecycle. By leveraging these proprietary technologies, oil and gas operators in New Mexico can unlock new reserves, increase production rates, and capitalize on previously uneconomical resources. While the specific details of these technologies are closely guarded, their impact on the industry is undeniable, driving continuous innovation and driving the state's economic growth forward.
