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Author Topic: Shape of a unit  (Read 16541 times)

MrMajik

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Shape of a unit
« on: May 10, 2008, 02:40:09 PM »
I understand it may be impossible to accurately predict the size and shape of a well's productive area on the surface before it's been properly planned, permitted, unitized, etc.  However, my question is a general one.  If we assume mostly horizontal wells will be drilled in our area is it likely the shape of the productive acreage at the surface will be somewhat elongated, extending more or less above the horizontal hole?  I understand the horizontal component of the hole can potentially extend many thousands of feet.

We know that one of the primary techniques in planning a horizontal well in the Marcellus shale is to aim it perpendicular to the J1 fractures (see article at http://www.aapg.org/explorer/2008/03mar/marcellus.cfm).  Thus, if we find out the location of a planned horizontal well nearby, is it logical to assume a rough directional shape of its productive area on the surface?  The elongated shape, if I'm right in that assumption, might extend in either or both directions from the wellhead.

This is all a guess.  I'd appreciate any knowledgeable explanations as to whether or not my guess has any merit.

Tiadaghton

  • Guest
Re: Shape of a unit
« Reply #1 on: May 29, 2008, 09:55:26 AM »
I think you are right in assuming the direction they will drill.  The DEP permit for a local well here showed drilling perpendicular to the fracture direction.  The horizontal distance was roughly 2000 feet with a depth of about 7000'.  As for the shape of the unit, that remains a mystery unless it's filed at the court house.   

farmerDoug

  • Guest
Re: Shape of a unit
« Reply #2 on: July 12, 2008, 07:33:22 PM »
In Michigan, drill units are based on forty acre units in the government section divisions, in other words, a quarter quarter section.  A horizontal drill would have to include all drill units in which the bore passes through or within 300 feet of the edge of.  Now of course they can ask for a variance to the rule but it still pretty much holds true.  So if they go across a section on an angle then they would have to include all of the forty acres units involved and not just a 1000 foot wide path.

farmerDoug

  • Guest
Re: Shape of a unit
« Reply #3 on: July 12, 2008, 07:35:24 PM »
Michigan DEQ has a online site were you can review permit applications, permits and well logs.  The units must be listed on the permit application or it will be denied.

lagomia

  • Guest
Re: Shape of a unit
« Reply #4 on: July 21, 2008, 08:14:22 AM »
Hi.  Not a very technical, or specific response, but at the meeting in Greene, NY, DEC said that the shape would be more rectangular (as you said, "elongated") and that any permits for irregular shapes (their example, "like the shape of your hand") would be denied because it would be a company's attempt at leaving out certain landowners.

Humphry444

  • Guest
Re: Shape of a unit
« Reply #5 on: May 25, 2010, 06:41:15 AM »
brqdford cnut units are ~3200 ft wide, 71 degrees  and 10-12 k long.

ruby_99

  • Posts: 3509
Re: Shape of a unit
« Reply #6 on: May 25, 2010, 07:59:49 AM »
I'd hate to disagree with an "expert"  ::), but I've plotted thirteen units in Bradford. The average looks to be 7700' x 4000'.

The trend would probably be toward longer units, but I haven't seen any declarations like that yet.
80ac AlleghenyCounty, PA still unleased, 70 ac Washington County finally leased
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Humphry444

  • Guest
Re: Shape of a unit
« Reply #7 on: May 25, 2010, 10:10:34 AM »
I should have qualified,  Chesapeake units, that  is the general plan at this point.

East's foirtuna's are fatter?

Yes longer laterals are coming into play. They are planning something on that order
a guess is you will see a bunch all at once soon .

In Tuscorora Twp, sites are nearly eaxctly 3k to 3400 ft apart. li9ning up for unifrom units.

RH

Garvin

  • Guest
Re: Shape of a unit
« Reply #8 on: May 25, 2010, 11:58:44 AM »
Spacing in Michigan is not only limited to 40 acres. The spacing varies greatly.

Then again, I am a lying cheating no-good landman, so you'd better consult an attorney on that just to be sure.  ;D

aubrey

  • Posts: 14053
  • NEWBIE
Re: Shape of a unit
« Reply #9 on: May 25, 2010, 02:17:13 PM »
Spacing in Michigan is not only limited to 40 acres. The spacing varies greatly.

Then again, I am a lying cheating no-good landman, so you'd better consult an attorney on that just to be sure.  ;D

duly noted garvin, and thank you for the full disclosure there.

i thought you were such a nice guy too, but i guess ya cant judge a book by its cover.

wj
CHANGE IT BACK!

poonster

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Re: Shape of a unit
« Reply #10 on: May 25, 2010, 03:19:43 PM »
Spacing in Michigan is not only limited to 40 acres. The spacing varies greatly.

Then again, I am a lying cheating no-good landman, so you'd better consult an attorney on that just to be sure.  ;D

duly noted garvin, and thank you for the full disclosure there.

i thought you were such a nice guy too, but i guess ya cant judge a book by its cover.

wj

Even with that sweet do?

Garvin

  • Guest
Re: Shape of a unit
« Reply #11 on: May 25, 2010, 04:04:22 PM »
Spacing in Michigan is not only limited to 40 acres. The spacing varies greatly.

Then again, I am a lying cheating no-good landman, so you'd better consult an attorney on that just to be sure.  ;D

duly noted garvin, and thank you for the full disclosure there.

i thought you were such a nice guy too, but i guess ya cant judge a book by its cover.

wj

Even with that sweet do?

Chicks dig it... Well, that and my sweet ass camaro with an eagle on the hood. What can I say, the 80's were good to me.

Mich-Pioneer

  • Guest
Re: Shape of a unit
« Reply #12 on: June 01, 2010, 06:00:31 PM »
In Mich, there are rumbles state DEQ may impose a "special spacing order" for the collingwood, and that might be 640 acres in the shape of a square mile.   It stands to reason that companies want to get as long a lateral in the payzone as possible.   Unless there are geologic reasons to do something different, I'd expect the usual pattern to be site the pad in one corner of the section, and rill NW-SE or NE-SW, just like Encana did on the State Pioneer 1-3 wildcat.   

The lateral will drain acres close to the bore, but not so much away from the bore.  I'm guessing that many acres in the square section will not contribute hydrocarbons, yet they will share in the royalty.  That will seriously dilute the royalty paid to landowners closer to the lateral bore.   SO.... if the Michigan collingwood wells could be 1/2 mile apart without interefering with each other, I'd like to see DEQ do a spacing order for standup or laydown 640s, so the gas co can have a nice long lateral to make it work economically, yet landowners won't suffer royalty dilution. 

The problem there will be that laydown or standup 640s, 1/2 mile wide by 2 miles long, could end up "donut holing" property.  Yet the problems I'm describing could be addressed by a voluntary pool.  The trouble there is you need everyone to agree in 100% unanimity.

Anybody have any lease addendum ideas for resisting royalty dilution by putting long horizontals diagonally across a square 640? 

MichGuy

heisoktoday

  • Guest
Re: Shape of a unit
« Reply #13 on: June 01, 2010, 07:00:10 PM »
In Mich, there are rumbles state DEQ may impose a "special spacing order" for the collingwood, and that might be 640 acres in the shape of a square mile.   It stands to reason that companies want to get as long a lateral in the payzone as possible.   Unless there are geologic reasons to do something different, I'd expect the usual pattern to be site the pad in one corner of the section, and rill NW-SE or NE-SW, just like Encana did on the State Pioneer 1-3 wildcat.   

The lateral will drain acres close to the bore, but not so much away from the bore.  I'm guessing that many acres in the square section will not contribute hydrocarbons, yet they will share in the royalty.  That will seriously dilute the royalty paid to landowners closer to the lateral bore.   SO.... if the Michigan collingwood wells could be 1/2 mile apart without interefering with each other, I'd like to see DEQ do a spacing order for standup or laydown 640s, so the gas co can have a nice long lateral to make it work economically, yet landowners won't suffer royalty dilution. 

The problem there will be that laydown or standup 640s, 1/2 mile wide by 2 miles long, could end up "donut holing" property.  Yet the problems I'm describing could be addressed by a voluntary pool.  The trouble there is you need everyone to agree in 100% unanimity.

Anybody have any lease addendum ideas for resisting royalty dilution by putting long horizontals diagonally across a square 640? 

MichGuy

I also fear that this type of rule could drive some of the smaller companies out of whatever areas that it is used. I would hate to see spacing, and unit size in Pennsylvania for example controlled by regulation; although minimum setback from other properties is equitable.

I have seen a proposal that wells be spaced as far as 1000 feet from each other. The argument that this is more efficient is crazy. I believe that the O & G companies know what the optimum will be in any given area. They would try not to drill a single well that does not pay for itself with increased output . 


Garvin

  • Guest
Re: Shape of a unit
« Reply #14 on: June 01, 2010, 07:41:48 PM »
I don't get it... how can you have a 640 acre square unit defined as "standup" or "laydown" if you are dealing with a square? Are you talking about spacing being defined by the placement of the vertical and lateral portions of the hole? Does the state actually make this kind of distinction?

I always thought of the standup/laydown concept of dealing with 80's, 160's or even 320's. The spacing is generally dictated by the location of the first well drilled in a field, with some exceptions.

(Also, the idea of 100% unanimity in ANYTHING is probably not likely, particularly in an area like Northern Michigan. We tend to be a fairly independent minded bunch of folks.)




 


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