Realize that my following thoughts are simply that, just my thoughts but I hope that something I might say are helpful. The Docket 117 was proposed by Terry was submitted to WOGCC on February 28th and then the hearing on this was around the middle of April if I can remember and it was approved in late April or early May this year.
Basically when they were laying out their plans to redrill London Flats back early part of last year, they thought that they needed to run the 320 sections in a west to east direction for section 28 and a north south 320 spacing in section 29 (docket 9-2010). I do not know why section 29 was included in the docket since it appeared to already be running the right way. I am not a lawyer, nor an oil man so I cannot tell you why the docket included one section that stayed the same (sec. 29) and one that was directionally changed (sec. 28)
After we got all the 3-D back, Terry then applied for docket 117-2011 which basically said, "Wyoming, we dont want to do what we said earlier in docket9-2010). We want to follow the standard rules of Wyoming drilling policy and run the 320's in a north to south direction on both sections 29 and 28". The state of Wyoming said, "That will be fine" and approved the dissolution of docket 9-2010. This was all done before the directional drilling of our wells in section 28 could gain approval.
Shortly after this approval, all 4 of our wells were approved.
We have 4 permits to drill currently and one application waiting approval which is Defender #2 or #3 or whatever name we are giving it. We also will shortly see a permit for an exploratory vertical show up soon which will be the Spirit of America.
I agree with Rcrow, Acreage and several others here that we may never drill Defender #1 (the one in section 20 which goes southerly into section 29) until we can get approval for 160 acre spacing but at least it is approved if we want to do this later. So yes there is only 1 Defender well that is going to be drilled (at least for the forseeable future).
Several have commented that Terry must have seen more information that caused him to want to drill this well in place of the original positioning of Defender 1 and I also believe this is the case. It has to be or why else would he have redirected the well to run northly instead of the Defender 1 well that was to run the lateral in a southerly direction into section 29?
I commented that the SOA was an assesment well which is only partially right. Terry called it an exploratory well which is much more accurate with the chance of turning it into a producer after it has collected its data. I am going out on a limb but a betcha that this assesment well will almost be on top of where the London Flats well was located! I'll be interested to see where it is plotted when they ask for the permit but mark my word it will be within a stones throw of the old London Flats well.
Finally, I am in complete agreement that figuring out our ORRI status is futile at best. What I use to help me is if a well is permitted by CHK but our latest map shows that we own the land, then there is a good chance it is ORRI well.
Several have explained how our maps can show that we own the land when in reality CHK controls the spacing. You all may have the best explanation for this.
If the older maps showed that we owned the land say back in September of last year and the newer ones do not, then even though the philosophy may be flawed, I am making an assumption that this is the land CHK bought from us.
If a well is permitted on the areas we used to own 100% of but now we do not, then it is most likely CHK sold land and even though not perfect, a pretty good idea it is an ORRI well.
Enough for my mindless rambling. It's past midnight again.
On a very positive side, the Dow took it hard today, and WTI crude was down below $95 and SSN held up great only taking a 5 cent hit on low volume. I've got to take it as a pretty good sign that we have support around 2.70. Could be a bump summer but I think the trend will certainly be northly. STS
SSN Price at posting:
13.0¢ Sentiment: LT Buy Disclosure: Held
