New Mexico Farmout - Horizontal Wells

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-704
• Format: Word; Rich Text

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. New Mexico Farm out — Horizontal Wells: A NeMexicanroutputut refers to an agreement between an existing leaseholder and another party, known as the farmer, where the farmer agrees to assume the responsibilities and costs associated with drilling and operating horizontal wells in exchange for a share of the leaseholder's working interest in the oil and gas lease. Horizontal wells, also known as lateral wells, are a type of drilling technique used in the oil and gas industry to increase production and maximize the recovery of resources trapped in shale formations. Keywords: New Mexico, farm out, horizontal wells, leaseholder, farmer, drilling, operating, working interest, oil and gas lease, production, recovery, resources, shale formations. Types of New Mexico Farm out — Horizontal Wells: 1. Shale Formation Horizontal Wells: Shale formations are rich in hydrocarbon resources, particularly natural gas and oil. The farmer assumes the responsibility of drilling and operating horizontal wells within shale formations to access these valuable resources. This type of farm out focuses on maximizing production from shale formations. 2. Multi-Staged Fractured Horizontal Wells: In this type of farm out, the farmer specializes in drilling and operating horizontal wells that are then subjected to multi-stage hydraulic fracturing. The process involves injecting high-pressure fluids into the well bore to create fractures in the shale rock, allowing for the release of trapped oil and gas. 3. Enhanced Oil Recovery (FOR) Horizontal Wells: This type of farm out involves utilizing horizontal wells to implement enhanced oil recovery techniques. Different methods such as carbon dioxide flooding, water flooding, or other chemical injection techniques are employed to improve the recovery rates of oil from existing reservoirs. 4. Tight Oil/Gas Formation Horizontal Wells: Tight oil and gas formations, often referred to as unconventional reservoirs, present unique challenges for drilling and production due to their low permeability. The farmer specializes in drilling and operating horizontal wells within these formations, using advanced technologies such as horizontal drilling and hydraulic fracturing to improve production rates. 5. Geologically Challenging Horizontal Wells: Some areas in New Mexico may have complex geological features, including faulting, folding, or variations in rock properties, that make drilling and operating horizontal wells more challenging. The farmer with expertise in dealing with such geological complexities takes over the drilling and operations in these types of farm outs. In summary, a New Mexico farm out for horizontal wells refers to an agreement where a farmer assumes responsibility for drilling and operating horizontal wells in exchange for a share of the leaseholder's working interest. The different types of New Mexico farm outs can focus on specific formations like shale or tight oil/gas reservoirs, employ various enhanced oil recovery techniques, or address geological complexities.

New Mexico Farm out — Horizontal Wells: A NeMexicanroutputut refers to an agreement between an existing leaseholder and another party, known as the farmer, where the farmer agrees to assume the responsibilities and costs associated with drilling and operating horizontal wells in exchange for a share of the leaseholder's working interest in the oil and gas lease. Horizontal wells, also known as lateral wells, are a type of drilling technique used in the oil and gas industry to increase production and maximize the recovery of resources trapped in shale formations. Keywords: New Mexico, farm out, horizontal wells, leaseholder, farmer, drilling, operating, working interest, oil and gas lease, production, recovery, resources, shale formations. Types of New Mexico Farm out — Horizontal Wells: 1. Shale Formation Horizontal Wells: Shale formations are rich in hydrocarbon resources, particularly natural gas and oil. The farmer assumes the responsibility of drilling and operating horizontal wells within shale formations to access these valuable resources. This type of farm out focuses on maximizing production from shale formations. 2. Multi-Staged Fractured Horizontal Wells: In this type of farm out, the farmer specializes in drilling and operating horizontal wells that are then subjected to multi-stage hydraulic fracturing. The process involves injecting high-pressure fluids into the well bore to create fractures in the shale rock, allowing for the release of trapped oil and gas. 3. Enhanced Oil Recovery (FOR) Horizontal Wells: This type of farm out involves utilizing horizontal wells to implement enhanced oil recovery techniques. Different methods such as carbon dioxide flooding, water flooding, or other chemical injection techniques are employed to improve the recovery rates of oil from existing reservoirs. 4. Tight Oil/Gas Formation Horizontal Wells: Tight oil and gas formations, often referred to as unconventional reservoirs, present unique challenges for drilling and production due to their low permeability. The farmer specializes in drilling and operating horizontal wells within these formations, using advanced technologies such as horizontal drilling and hydraulic fracturing to improve production rates. 5. Geologically Challenging Horizontal Wells: Some areas in New Mexico may have complex geological features, including faulting, folding, or variations in rock properties, that make drilling and operating horizontal wells more challenging. The farmer with expertise in dealing with such geological complexities takes over the drilling and operations in these types of farm outs. In summary, a New Mexico farm out for horizontal wells refers to an agreement where a farmer assumes responsibility for drilling and operating horizontal wells in exchange for a share of the leaseholder's working interest. The different types of New Mexico farm outs can focus on specific formations like shale or tight oil/gas reservoirs, employ various enhanced oil recovery techniques, or address geological complexities.