From The Denver Post:
North Dakota regulators ordered a Denver company to forfeit crude oil that was obtained from an area where it did not hold a lease.
The North Dakota Industrial Commission on Monday ordered Gadeco LLC to forfeit the 800 barrels of oil. Proceeds from the sale of the oil will go into the state's general fund.
State Mineral Resources Director Lynn Helms says the company drilled into an area in Williams County in error.
He says the company spent more than $8 million drilling the well, which is now plugged.
Helms says it's the first time such an incident has happened in North Dakota.This is the well:
NDIC File No: 21173 API No: 33-105-02293-00-00
Well Type: OG Well Status: DRY Status Date: 2/19/2015 Wellbore type: Horizontal
Location: NENW 25-155-99 Footages: 460 FNL 2475 FWL Latitude: 48.225525 Longitude: -103.356239
Current Operator: GADECO, LLC
Current Well Name: GOLDEN 25-13H
Elevation(s): 2357 KB 2334 GR 2334 GL Total Depth: 19920 Field: EPPING
Spud Date(s): 10/9/2011
Casing String(s): 9.625" 2225' 7" 11392'
Completion Data
Pool: BAKKEN Perfs: 11392-19920 Comp: 5/24/2012 Status: DRY Date: 2/19/2015 Spacing: 2SEC
Cumulative Production Data
Pool: BAKKEN Cum Oil: 800 Cum MCF Gas: 101 Cum Water: 0
Production Test Data
IP Test Date: 5/24/2012 Pool: BAKKEN IP Oil: 46 IP MCF: 7 IP Water: 20
Monthly Production DataWell Type: OG Well Status: DRY Status Date: 2/19/2015 Wellbore type: Horizontal
Location: NENW 25-155-99 Footages: 460 FNL 2475 FWL Latitude: 48.225525 Longitude: -103.356239
Current Operator: GADECO, LLC
Current Well Name: GOLDEN 25-13H
Elevation(s): 2357 KB 2334 GR 2334 GL Total Depth: 19920 Field: EPPING
Spud Date(s): 10/9/2011
Casing String(s): 9.625" 2225' 7" 11392'
Completion Data
Pool: BAKKEN Perfs: 11392-19920 Comp: 5/24/2012 Status: DRY Date: 2/19/2015 Spacing: 2SEC
Cumulative Production Data
Pool: BAKKEN Cum Oil: 800 Cum MCF Gas: 101 Cum Water: 0
Production Test Data
IP Test Date: 5/24/2012 Pool: BAKKEN IP Oil: 46 IP MCF: 7 IP Water: 20
Pool | Date | Days | BBLS Oil | Runs | BBLS Water | MCF Prod | MCF Sold | Vent/Flare |
---|---|---|---|---|---|---|---|---|
BAKKEN | 12-2013 | 5 | 554 | 0 | 0 | 0 | 0 | 0 |
BAKKEN | 5-2012 | 5 | 246 | 0 | 0 | 101 | 0 | 101 |
I've gone through the file report and there were two issues:
- paperwork
- location
Disclaimer: I went through the paperwork quickly and may have missed something. I have no formal training in the oil and gas industry and no formal training in reading file reports, so I may have missed something or misread something.
Disclaimer: Perhaps others have the back story, and I am way beyond my comfort zone here, but I will post some comments, some of which appear to be factual, but may, in fact, be opinion. If this information is important to you, do not rely on this. Go to the source. In addition, please feel free to read this, but do not "quote me" on this as having made any conclusion or determination. I am simply thinking out loud.
- It appears the well was sited as stated on the NDIC-approved permit application.
- It appears the bottom hole ended in the section as requested on the NDIC-approved permit application.
- The well was fracked back in 2012, open-hole, with about 1.8 million lbs of proppant.
- 20-stage frack; the company was required to cement the 20th stage; not located in drilling unit;
- There was a long period of inactivity on the well -- greater than a year, and less than two years.
- NDIC notified the company that the failure to produce oil or natural gas for greater than one year, constitutes an abandoned well.
- There were some paperwork / documentation issues.
- It's my impression that the NDIC works with oil companies to resolve paperwork / documentation issues.
- A sundry form reiterated that it was a location problem and in that sundry form referenced the KOP.
- The well was sited about 460 feet south of the approved drilling unit.
- I'm not exactly sure what the rules are regarding where the KOP and the lateral horizontal must begin (ECP/ICP) but this case may provide some insight.
- The linked article states this was the first time this has ever happened in North Dakota; based on one sentence in the 190+ page file report suggests that it may have been discovered due to simple serendipity.
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