Louisiana Farmout - Horizontal Wells

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Multi-State
Control #:
US-OG-704
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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.

Louisiana Farm out — Horizontal Wells is a specific drilling technique used in the oil and gas industry. It involves drilling wells horizontally rather than vertically, allowing for better access to oil and gas deposits in certain geological formations. This method has gained popularity in Louisiana due to its efficiency in extracting resources from challenging reservoirs. One type of Louisiana Farm out — Horizontal Wells is thShalwarroutputut. Shale formations can be challenging to extract oil and gas from using traditional vertical drilling methods. Horizontal drilling enables the well to intersect and follow the shale layers, increasing the surface area exposed to the reservoir and improving productivity. Another type is the Tight Sand Farm out. Tight sand reservoirs have low permeability, making it difficult for oil and gas to flow freely. By drilling horizontally, the well can intersect these formations, opening up more pathways for the oil and gas to flow, thereby increasing production rates. In addition to Shale and Tight Sand, other types of Louisiana Farm out — Horizontal Wells include Carbonate Farm outs and Coal Seam Gas Farm outs. Carbonate formations are composed of limestone or dolomite and can hold significant hydrocarbon reserves. Horizontal wells drilled in carbonate formations can target specific layers to maximize production. Coal seam gas refers to the natural gas found within coal seams. Horizontal drilling in coal seams allows for better access to the gas pockets, increasing the efficiency of extraction. Overall, Louisiana Farm out — Horizontal Wells offer a more efficient and productive method of extracting hydrocarbon reserves in challenging geological formations. This drilling technique is particularly useful in shale, tight sand, carbonate, and coal seam gas reservoirs, providing opportunities for increased production and improved resource recovery.

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FAQ

The first oil well in Louisiana was drilled in 1901 in a rice field on the "Mamou Prairie" in the community of Evangeline near Jennings. The owner of the property, Jules Clement, had noticed bubbles rising from a spot in one of his rice fields when it flooded.

The oil industry has built thousands of miles of man-made canals in coastal marshes and barrier islands, which have contributed to the state's coastal erosion problem. Experts also believe that taking fluids from underground has led to subsidence, a form of land collapse.

The first modern oil well in America was drilled by Edwin Drake in Titusville, Pennsylvania in 1859. The discovery of petroleum in Titusville led to the Pennsylvania 'oil rush', making oil one of the most valuable commodities in America.

What is the average depth an oil or gas well is drilled in Louisiana? 6,876 feet is the average depth of a well in Louisiana.

Wells drilled in search of oil to depths below 3,000 feet subsea shall not be located closer than 330 feet from any property line nor closer than 900 feet from any other well completed in, drilling to, or for which a permit shall have been granted to drill to, the same pool.

By March 1986, the oil bust had caused Louisiana's unemployment rate to hit 13.2 percent, the highest in the country and nearly 6 percentage points above the national average.

First oil well of commercial quantities discovered in the state: The Heywood #1 Jules Clement well, drilled near Evangeline, Louisiana, in Acadia Parish, which was drilled to a depth of approximately 1,700 feet in September 1901 (counties are called ?parishes? in Louisiana).

Louisiana statewide summary oil and gas data that goes back to 1977 and contains information on the 206,741 wells that have been drilled in the state since that time. Louisiana is ranked #5 in the US based on Barrels of Oil Equivalent (BOE) produced in Jun 2023.

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by JS Lowe · 1989 — 8For a more complete discussion of the substitute well clause in farmout agreements, see Lowe, supra note 1 at 814-818. Page 10. 10 (Popup - Vol 24A Ch 6 Fn ... by JS Lowe · 2017 — costs, and the farmout may cover multiple wells. d) Exploration and ... of states, including Oklahoma and Louisiana, the remedy is apparently the cost of ...(c) It is anticipated by the Parties that the majority of the Obligation Wells will be horizontal wells with the horizontal portion of each wellbore being of a ... May 29, 2023 — Obligation farmouts, on the other hand, remove the choice: the farmee is required to drill a well or will be in breach of contract. Farmees ... Dec 15, 2009 — I was reading an article a few month ago about the company in Mi that dug in (like a ditch witch not plow in) horizontal irrigation wells. Oct 2, 2009 — incentive to the oil and gas industry since IDCs typically amount to between 50% and. 80% of the total costs of drilling and completing a well. Mar 22, 2023 — ❖ The RRC will issue a permit to drill a horizontal allocation well where the applicant shows ... Louisiana Response to Changes in Drilling ... A unique well name and number. Well names are based on the mineral owner at the take point for straight and directional wells. For horizontal wells, the well ... 6 Encana objected to any sale of the land free and clear of its drilling and development right – a real property interest recognized under Texas law.7. Vanguard ... An "overriding royalty" is a fractional interest in the gross production of oil and gas under a lease, in addition to the usual royalties paid to the lessor, ...

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Louisiana Farmout - Horizontal Wells