GoHaynesvilleShale.com

gingles

Conventional vs. Unconventional Drilling and Production

  • Rating: No Rating
An exhibit to our lease which overrules conflicting language in the lease states, in part:

The term "oil, gas and minerals" as used herein shall refer to liquid or gaseous hydrocarbons only and then only such hydrocarbons that may be produced through conventional oil and gas drilling and production methods."

this was not standard clause. It was added as part of the addendum by an attorney. Ostensibly clauses like this exclude hard mineral mining (and perhaps mined oil shale)and the first part of the sentence would have accomplished that. And a following sentence specifically excludes hard minerals. So what is the purpose of the second part of the sentence "and then only such hydrocarbons that may be produced through conventional oil and gas drilling and production methods"? Just overkill?

MY QUESTION IS:

Is the drilling and production of shale formations (e.g., horizontal drilling and other techniques for drilling and producing from shale) considered conventional oil and gas drilling and production methods? Or would this provision exclude shale production?

I did find a definition from a USDOE site:

Conventional oil and natural gas production: Crude oil and natural gas that is produced by a well drilled into a geologic formation in which the reservoir and fluid characteristics permit the oil and natural gas to readily flow to the wellbore.

Also, the MyOilPro site says:

"Haynesville shale oil and gas production is "unconventional." Conventional production is that produced from sandstone, limestone or dolomite reservoir rock, typically from a vertical wellbore. Unconventional oil plays include oil shale, the Canadian tar sands and Venezuela's super-heavy oil. None of these are pumped to the surface; other techniques, such as mining and heating are required to extract the oil. With the Haynesville shale, getting the gas out in commercial quantities will require horizontal drilling, a very expensive process. Wells cost in excess of $8 million each!"

Pretty much every site on the 'net refers to gas shale as "unconventional gas".

Do you think our lease excludes "unconventional production" including shale gas production?

Share Bookmark and Share

Reply to This

Replies to This Discussion

They call horizontal drilling conventional but methods to bring the gas to the surface use unconventional liquids. Think Schlumberger is selling their new product line. With all the emphasis on hydro fracturing I wonder if anyone is using explosives downhole. Is there a reason that wouldn't work?

Reply to This

Yes, many reasons! It was tried many years ago. Plastic explosives. Two problems: it blows the heck out of the wellbore and can't be controlled. When you're done, you don't have the ability to produce the well!! And, the temperature rises very high and can cause a glaze or glass-like covering over the rock, hampering production. But, it was fun!!!!

BTW, all of the comments regarding conventional drilling/production methods versus unconventional resources/reservoirs are spot on. Horizontal drilling and frac'ing is not unconventional. Its pretty much a standard practice.

Reply to This

Thanks much guys for your thoughts and expertise on this. It's greatly appreciated.

Reply to This

  • 1
  • 2

RSS

Haynesville Shale Blog Posts

Joe Dyer

Our Site Needs to Unite

Posted by Joe Dyer on June 29, 2009 at 10:02pm — 4 Comments

wolf

The Karma of Leasing

Posted by wolf on June 28, 2009 at 7:00am — 4 Comments


GHS on FacebookFollow GHS on Twitter
GHS on your iPhone

Badge

THE VIEWS EXPRESSED, by any member(s), ON GoHaynesvilleShale.com have not been officially reviewed by any staff member, legal counsel, or moderator at GoHaynesvilleShale.com (GHS). GHS is not intended to provide official professional advice which includes but is not limited to advice relating to legal, financial, accounting, tax or investment and shall not be relied upon in any way. WE NEITHER ENDORSE NOR ARE RESPONSIBLE FOR THE ACCURACY OR RELIABILITY OF ANY OPINION, ADVICE, OR STATEMENT MADE ON THIS SITE IN THE CHATROOMS, DISCUSSION BOARDS, USER COMMENT WALLS, INTERNAL EMAILS, AND THE LIKE BY ANYONE OTHER THAN AUTHORIZED GOHAYNESVILLESHALE EMPLOYEES (Moderators shall not be considered employees) WHILE ACTING IN THEIR OFFICIAL CAPACITIES. As user, you represent and warrant that(a) your content does not violate any state, local or federal law or regulation(s) and that you will use the site, and any information provided to you by us, in a manner that complies fully with applicable laws; (b) you have full technical and editorial control of your content; (c) your content does not and will not, directly or indirectly, infringe upon any copyright, trademark, United States patent, trade secret right, moral right, rights of publicity or privacy, or any other intellectual property or proprietary right of any third party; and (d) you have obtained any and all necessary and appropriate publicity releases from any third party appearing in your content. © GoHaynesvilleShale.com, LLC 2008-2009. All rights reserved

© 2009   Created by Keith - Site Publisher

Badges  |  Report an Issue  |  Privacy  |  Terms of Service

googlebd5968765582ce2f.html