This is a provision for an Operating Agreement that concerns the Assignment of rights to an obligatory well. It provides the assignment options if any proposed operations are necessary to maintain a Lease covered by the Agreement in force or an agreement to earn a lease(s) which would otherwise expire unless operations are conducted.
New Mexico Obligatory Well is an oil and gas drilling term used in the state of New Mexico, USA. It refers to a legally mandated well that operators are required to drill to tap into hydrocarbon resources within designated areas. These wells are strategically positioned to comply with state regulations and ensure optimal extraction of oil and gas reserves. Now, let's dive into the different types of New Mexico Obligatory Wells: 1. Conventional Obligatory Wells: These wells are drilled using traditional drilling techniques and equipment. They target conventional oil and gas reservoirs that are easily accessible and have predictable production characteristics. 2. Unconventional Obligatory Wells: Unlike conventional wells, unconventional obligatory wells target unconventional resources, such as shale formations, tight sands, or coal bed methane. These wells require advanced drilling technologies, such as hydraulic fracturing (fracking), to stimulate production from the tight rock formations. 3. Horizontal Obligatory Wells: This type of obligatory well involves drilling wells horizontally through the targeted hydrocarbon-bearing formations. Horizontal wells extend the well bore length within the reservoir, increasing contact with the oil or gas-bearing rock and enhancing production rates. 4. Vertical Obligatory Wells: Vertical obligatory wells involve drilling directly into the hydrocarbon reservoir and extracting resources vertically. They are typically used for shallower formations or when the resources are located in a confined area. 5. Multi-Lateral Obligatory Wells: Multi-lateral obligatory wells involve drilling multiple well bores from a single vertical well, branching out into different directions to increase reservoir access and productivity. This technique is commonly used in situations where there are multiple productive zones within a single reservoir area. 6. Water Injection Obligatory Wells: Water injection obligatory wells are designed to inject water into the reservoir to maintain reservoir pressure and enhance oil or gas recovery. These wells play a crucial role in enhanced oil recovery methods, ensuring efficient and sustainable production. Overall, New Mexico Obligatory Wells encompass a range of drilling techniques and technologies used to explore and extract oil and gas resources in compliance with state regulations. These wells contribute significantly to the energy industry in New Mexico, promoting economic growth and fulfilling the state's resource potential.New Mexico Obligatory Well is an oil and gas drilling term used in the state of New Mexico, USA. It refers to a legally mandated well that operators are required to drill to tap into hydrocarbon resources within designated areas. These wells are strategically positioned to comply with state regulations and ensure optimal extraction of oil and gas reserves. Now, let's dive into the different types of New Mexico Obligatory Wells: 1. Conventional Obligatory Wells: These wells are drilled using traditional drilling techniques and equipment. They target conventional oil and gas reservoirs that are easily accessible and have predictable production characteristics. 2. Unconventional Obligatory Wells: Unlike conventional wells, unconventional obligatory wells target unconventional resources, such as shale formations, tight sands, or coal bed methane. These wells require advanced drilling technologies, such as hydraulic fracturing (fracking), to stimulate production from the tight rock formations. 3. Horizontal Obligatory Wells: This type of obligatory well involves drilling wells horizontally through the targeted hydrocarbon-bearing formations. Horizontal wells extend the well bore length within the reservoir, increasing contact with the oil or gas-bearing rock and enhancing production rates. 4. Vertical Obligatory Wells: Vertical obligatory wells involve drilling directly into the hydrocarbon reservoir and extracting resources vertically. They are typically used for shallower formations or when the resources are located in a confined area. 5. Multi-Lateral Obligatory Wells: Multi-lateral obligatory wells involve drilling multiple well bores from a single vertical well, branching out into different directions to increase reservoir access and productivity. This technique is commonly used in situations where there are multiple productive zones within a single reservoir area. 6. Water Injection Obligatory Wells: Water injection obligatory wells are designed to inject water into the reservoir to maintain reservoir pressure and enhance oil or gas recovery. These wells play a crucial role in enhanced oil recovery methods, ensuring efficient and sustainable production. Overall, New Mexico Obligatory Wells encompass a range of drilling techniques and technologies used to explore and extract oil and gas resources in compliance with state regulations. These wells contribute significantly to the energy industry in New Mexico, promoting economic growth and fulfilling the state's resource potential.
