756-2009-10 Applications Archive... · drill a test well on a tract owned by the Applicant (1,926 feet from the South Unit Line ... \James Teff's Documents\Projects\SWD Update\Cove

$Page 1: 756-2009-10 Applications Archive... · drill a test well on a tract owned by the Applicant (1,926 feet from the South Unit Line ... \James Teff's Documents\Projects\SWD Update\Cove$
JERRY L. CANFIELD, P.A.

THOMAS A. DAILY, P.A.

WYM AN R. WADE, JR. , P.A.

DOUGLAS M. CARSON, P.A.

ROBERT R. BRIGGS, P.A. † *

C. M ICH AE L D AILY , P.A. †

COBY W . LOGAN

L. MATTHEW D AVIS †

COLBY ROE

* Fayetteville Office

† Also Licensed in Oklahoma

DAILY & WOODSA PROFESSIONAL LIMITED LIABILITY COMPANY

ATTORNEYS AT LAW

KMW BUILDING58 SOUTH SIXTH STREET

P.O. BOX 1446FORT SM ITH, AR 72902

TELEPHON E (479) 782-0361FAX (479) 782-6160

______________

COMMERCE PARK II BUILDING2049 EAST JOY CE BO ULEVA RD, STE. 301

FAYETTEV ILLE, AR 72703TELEPHON E (479) 582-0361

FAX (479) 251-8111

JAMES E. WEST

PHILLIP E. NO RV ELL *

DALE CARLTON *

OF COUN SEL

_______

HARR Y P. DAILY (1886-1965)

JOHN P. WO ODS (1886-1976)

JOHN S. DAILY (1912-1987)

October 6, 2009

Arkansas Oil and Gas Commission301 Natural Resources Drive, Suite 102Little Rock, Arkansas 72205

Re: ORDER REFERENCE NO. 756-2009-10

Application of SEECO, Inc. for an exception to the provisions of ArkansasOil and Gas Commission General Rule H-1 and any other applicable rulesof the Commission and for authority to drill a test well, which, if successfulApplicant will apply to use as a Class II Salt Water Disposal Well, and toconduct a five-day injection test within the borehole of such well which willbe named the SEECO, Inc., Cove Creek 08-14 #1-14SWDW Well and isproposed to be drilled at a location 1,926 feet from the South line and1,915 feet from the East line of Section 14, Township 8 North, Range 14West, in Faulkner County, Arkansas

Commissioners:

SEECO, Inc., 2350 N. Sam Houston Parkway East, Houston, TX 77032, hereby appliesto the Arkansas Oil and Gas Commission as follows

1. The Applicant is the operator of the oil and gas unit comprised of Section 14,Township 8 North, Range 14 West, Faulkner County, Arkansas, which unit currentlycontains two natural gas wells, the SEECO, Inc. Scroggins 08-14 #1-14H Well and theSEECO, Inc, Scroggins 08-14 #2-14H Well. The Applicant now requests authority todrill a test well on a tract owned by the Applicant (1,926 feet from the South Unit Lineand 1,915 feet from the East Unit Line) to a total depth sufficient to test the OrrFormation (approximately 2,674 feet total depth) and to perforate its test well within theOrr Formation in order to determine, through testing, the feasibility of utilizing the testwell as a Class II Salt Water Disposal Well subject to Arkansas Oil and GasCommission General Rules H-1 and H-2.

2. The Applicant is unable, at current time, to apply for the drilling of this well as asalt water disposal well because the Applicant is unsure, at this time, without testing,whether the Orr Formation at its proposed well location will accept sufficient quantitiesof disposed salt water to make the operation economically feasible.

3. Also, the Applicant’s Scroggins 08-14 #2-14H Well, which is within a one-half

mile radius of the proposed test well which is the subject of this application, may notcontain adequate cement or be constructed in the manner that is required by ArkansasOil and Gas Commission General Rule H-1(h)10).

4. The Applicant has developed a proposal for re-entering and reconfiguring theScroggins 08-14 #2-14H Well which will result in bringing that well into full compliance with the requirements of Arkansas Oil and Gas Commission General Rule H-1(h)10). However, that reconfiguration operation, which is unnecessary for any other purpose, isprojected to cost $143,800.00, which sum will be wasted if the proposed test well whichis the subject of this application is proven incapable of accepting sufficient quantities ofsalt water to make its operation economically feasible.

5. Applicant therefore requests that it be permitted to drill its proposed Cove Creek08-14 #1-14SWDW Well to its proposed total depth and complete the well so that it canbe tested. The Applicant further requests that it be granted permission to conduct afive-day flow test during which it will attempt to inject produced salt water into the well inorder to determine its feasibility for use as a salt water disposal well. The Applicant willconduct no further injection into its test well until and unless it is issued an injectionpermit which will only occur after the Applicant reconfigures its Scroggins 08-14 #2-14HWell to meet the requirements imposed by Arkansas Oil and Gas Commission GeneralRule H-1(h)10).

6. Please note the appearance of Thomas A. Daily of Daily & Woods, P.L.L.C.,P.O. Box 1446, Fort Smith, Arkansas, 72902, on behalf of applicant.

Very truly yours,

Thomas A. Dailyjmt

EXHIBIT “A”Interested Parties

Whitewood LLC 116 Main Street Augusta, AR 72006

Suzanne Gouldy Newberry P.O. Box 29690 Austin, Texas 78755-6690

Chesapeake Exploration, LLCP. O. Box 18496Oklahoma City, OK 73154

BP America Production Company501 WestLake Park Blvd.Houston, TX 77079

XTO Energy Inc.810 Houston StreetFort Worth, TX 76102





Well Name:

Field/Prospect: Well Type:

Location: County: Faulkner State: AR

Operator:Elevation GL

(Survey): 447.4

Rig KB from

GL: 13.5

Datum

Elevation: 460.9

Lat: X-Crd: Y-Crd: Lat: Long: X-Crd: Y-Crd:

35.329638 -92.453566

Main

Objectives:

Secondary

Objectives:

Working

Interest:

Staff Geologist: Landman:

Operations

Geologist:

NA

Approx. Land

Point Lat: NA

Approx. Land

Point Long:

Depth TVD

at SHL:

Depth Sub-

Sea at SHL:

VS from SHL

to LP (feet):

Depth TVD at

Land Point:

1,188 -727

Orr 1,951 -1,490

Middle Orr 2,064 -1,603

2,188 -1,727

2,316 -1,855

2,474 -2,013

2,674 -2,213

Logs/Test:

Comments:

Note*

14-8N-14W

Geologic Landing Responsibility: Not Applicable

Formations dips are estimates only. Formation dip and the subseqent bit inclination will be determined by

Geology/Geosteering (consulting with Drilling) as needed during drilling operations.

Cannon

TD

top from OH Scroggins #1-14H


Vertical

Well ProposalRequest for Cost Estimate

Cove Creek SWD 08-14 #1-14

SWD


Cannon

Prognosed Fmtn:

Sells

Apparent Formation Dip to

Land Point:

Injection Zone Top

NA


Avg. Dip LP to BHL:

Clayton Davis

Injection Zone Base

SEECO

Remarks: (gas, oil, water, est. pore pressure, etc.)

top from OH Scroggins #1-14H (H2O flows)

Joe Edgar Conway

Long:

Middle Orr

Displacement from SHL:


Completable Lateral Length:

Lateral Azimuth:

LiveLink Well File

SEECO Scroggins 8-14 #1-14

Location of Data:

PEX, XPT, RSWC (50)Key offset wells :

SEECO Harrison 8-14 #2-11

PSHL (Ftg from Loc/Blk) PBHL (Ftg from Loc/Blk)

2382' FSL & 1738' FEL

Vertical Section:

Southwestern Energy Company Proposed Drilling Program

Well

Field

County

Location

KB Elev

State

:

:

:

:

:

:

COVE CREEK 08-14 #1-14 SWDW

COVE CREEK

CONWAY

Section 14-08N-14W 2,382 ft FSL & 1,738 ft FEL

440.9 ft MSL

AR

BHL : 2674 Vertical

Prospect : BROOKIE

8-7/8”flat-bottom

diamond bit

12.45”flat-bottom

rock bit

0' to 560'

Air / Mist

560' to 2674'

Air / Mist

0' to 2674'

WBM

Tubular Detail

Size Weight CxnGrade From To

Conductor

Surface

Production

16''

9.625"

7''

0' 35'

36# J-55 STC 0' 560'

23# 0' 2674'

KB : 10 ft AGL GL Elev : 430.9 ft MSL

560' to 2674'

Data source: C:\James Teff's Documents\Projects\SWD Update\Cove Creek 08-14 #1-14 SWDW\Well Input Sheet.xls

Plug Back TVD - 2634'

Casing Shoe 2674'

0' to 560'

Surface Cement:

Top of Lead Cement 0'

100% Excess 11.8 ppg

35:65 POZ: Type I/II

2% CaCl2

3% DCP-EX1

0.29% Celloflake

Top of Tail Cement 330'

100% Excess 15.6 ppg

Type I/II

2% CaCl2

0.27% Celloflake

LTC DDI 30

Production Cement:

2nd Stage Top of Cement 0'

30% Excess 14.2 ppg

50:50 POZ: Type I/II

0.5% DCP-FL1

0.1% DCP-RT1

0.3% Celloflake

1st Stage Top of Cement 1,750'

30% Excess 15.6 ppg

Type I/II

2% CaCl2

0.27% Celloflake

J-55

Tubing 4.5'' 11.6# J-55

Proposed Perforations 2,188' – 2,316' 6 spf 60° phasing

End of Tubing – 2,103'Packer – 2,098'

Staged Cementing Tool @ 1,650'

Sells 1,188'

Middle Orr 2,064'

Orr 1,951'

Cannon 2,474'

0' 2103'




Southwestern Energy Company Proposed Drilling Program

Well

Field

County

Location

KB Elev

State

:

:

:

:

:

:

SCROGGINS 08-14 #2-14H

COVE CREEK

FAULKNER

Section 14-8N-14W 2,598 ft FNL & 861 ft FEL

479.2 ft MSL

AR

BHL : Section 14-8N-14W 845 ft FNL & 2,623 ft FEL

Prospect : BROOKIE

Target Center

FL3

4550'

4432'

4505'

TD at 6910' MD / 2911' TVD

91° inc. 5254' VS

Upper Fayetteville 4481' MD

Lower Fayetteville

Tubular Detail

Size Weight CxnGrade From To

Conductor

Surface

Production

16''

9.625''

4.5''

0' 35'

36# J-55 STC 0' 532'

11.6# P-110 CDC 0' 6905'

TOC 7" csng x 8 ¾” open hole

at 3500'

3395' L. Fayetteville Lateral

91° Inclination

KB : 16 ft AGL GL Elev : 463.2 ft MSL

TOC ' 4 ½” csng x 7" csng

at 3330'

Data source: C:\James Teff's Documents\Projects\SWD Update\Cove Creek 08-14 #1-14 SWDW\Scroggins #2\Well Input Sheet.xls

Intermediate 7'' 23# J-55 STC 0' 4737'

Tubing 2.375'' 4.7# EUE 0' 4785'J-55

Proposed perforations

2474'-2475'

Proposed annular cement

1000'-2475'

LEASE & WELL #: Scroggins 08-14 #2-14H Prospect: BrookieWELL LOCATION: Cove Creek DATE: 13-Aug-09

SURF LOC: 2,598 ft FNL & 861 ft FEL EST. TD: 6910 ft MD / 4950 ft TVDBHL:

COUNTY, STATE: FAULKNER, ARAFE Type: Maintenance Workover AFE Group:

REMARKS:

SOUTHWESTERN ENERGY COMPANY - PA CHART OF ACCOUNTS

5520 INTANGIBLE Completion Costs5520-0010 TURNKEY DRILLING5520-0050 CONTRACT FOOTAGE5520-0070 AIR/GAS DRILLING&RELATED COMPR5520-0100 DAYWORK $40,0005520-0120 RIG MOBILIZATION / DEMOBILIZATION5520-0130 CONDUCTOR HOLE5520-0150 LOCATION5520-0170 TRAILER/FACILITIES RENTAL5520-0200 FUEL AND WATER5520-0250 MUD, COMPLETION FLUID & CHEMICALS5520-0300 DRILL BITS5520-0320 DIRECTIONAL DRILLING5520-0330 MEASUREMENT WHILE DRILLING (MWD)5520-0350 FORMATION EVALUATION5520-0370 CASED HOLE WIRELINE LOGGING & PERFORATING $15,0005520-0400 MUD LOGGING5520-0450 TESTING, CORE, AND ANALYSIS5520-0500 DRILL STEM TEST5520-0550 CEMENT AND CEMENTING SERVICES $17,0005520-0600 STIMULATION:ACIDIZE-FRAC-SQUEE5520-0610 SURFACE RENTALS $25,0005520-0630 TANK TRUCKS / MISC. PUMPING SERVICES5520-0640 EQUIPMENT TESTING5520-0650 SUBSURFACE / RELATED RENTALS $15,0005520-0660 FISHING TOOLS $15,0005520-0670 FRESH WATER HAULING5520-0680 CONCRETE,SAND AND GRAVEL5520-0700 SPECIALIZED SERVICES5520-0750 TRANSPORTATION5520-0800 SUPERVISION $16,8005520-0850 CONTRACT LABOR5520-0900 INSPECT CSG.,TBG.,DRILL PIPE5520-0930 HAMMER SERVICES5520-0950 DRILL SITE:PERMIT,CURATIVE,TITLE5520-0960 DRILL SITE SURVEY5520-0980 INTEGRATION & POOLING COSTS5520-1050 ENVIRONMENTAL & POLLUTION5520-1070 DAMAGES5520-1100 PITS / PIT LINERS5520-1130 OFFSITE DISPOSAL SERVICES5520-1200 INSURANCE5520-1530 WIRELINE SERVICE5520-1800 MEALS & ENTERTAINMENT5520-1900 PLUGGING & ABANDONMENT (DRY HOLE)5520-5000 CASH ADVANCES - (DRILLING/DRY HOLE)5520-5210 IDC ACCRUAL5520-7500 IDC - DRILLING: NON-OPERATED5520-9000 WELL COSTS - PENDING RECEIPT O 5520-9010 TEMPORARY WELL COSTS 5520-9250 OVERHEAD / INSURANCE5520-9260 OVERHEAD - DRILLING (CONTRA) 5520-9500 MISC. EXPENSES/CONTINGENCY

$143,800

845 ft FNL, 2623 ft FEL

MIRU work over rig pull tubing, set RBP, BACK OFF 4 1/2" PRODUCTION CASING, PERF 7" SQUEEZE CEMENT INANNULUS OVER ORR. Sting back into 4 1/2", run 2 3/8". Return well to production.

Scroggins 08-14 #2-14H AFE cost sheet2 10/5/2009 4:13 PM




REMARKS:



5530 TANGIBLE DRILLING COSTS5530-0050 DRIVE PIPE5530-0100 CONDUCTOR PIPE5530-0150 SURFACE CASING5530-0160 PROTECTION CASING5530-0200 INTERMEDIATE CASING5530-0300 LINERS5530-0450 SUBSURFACE EQUIPMENT5530-0550 WELLHEAD EQUIPMENT5530-0850 TAX ON CAPITAL ITEMS5530-0950 OTHER EQUIPMENT5530-9500 MISC. EXPENSES / CONTINGENCY

$0

TOTAL IMW $143,800TOTAL IMW $143,800





REMARKS:



1220 INTANGIBLE COMPLETION COSTS1220-0100 DAYWORK1220-0110 DAYWORK PERFORMANCE INCENTIVE 1220-0120 RIG MOBILIZATION / DEMOBILIZATION1220-0130 COMPLETION UNIT / SWAB UNIT1220-0140 COIL TUBING UNIT1220-0150 LOCATION1220-0160 SNUBBING UNIT1220-0170 TRAILER/FACILITIES RENTAL1220-0200 FUEL AND WATER1220-0250 MUD, COMPLETION FLUID & CHEMICALS1220-0300 DRILL BITS1220-0350 FORMATION EVALUATION1220-0370 CASED HOLE WIRELINE LOGGING & PERFORATING1220-0400 MUD LOGGING1220-0550 CEMENT AND CEMENT SERVICES1220-0600 STIMULATION:ACIDIZE - FRAC - SQUEEZE1220-0610 SURFACE RENTALS1220-0630 TANK TRUCKS/MISC. PUMPING SERVICES1220-0640 EQUIPMENT TESTING1220-0650 SUBSURFACE / RELATED RENTALS1220-0660 FISHING TOOLS1220-0670 FRESH WATER HAULING1220-0680 CONCRETE,SAND AND GRAVEL1220-0700 SPECIALIZED SERVICES1220-0730 COMPLETION UNIT1220-0750 TRANSPORTATION1220-0800 SUPERVISION1220-0850 CONTRACT LABOR1220-0900 INSPECT CSG.,TBG.,DRILL PIPE1220-0950 DRILL SITE:PERMITS,CURATIVE,TITLE1220-0970 SWAB UNIT/SERVICING1220-1000 INSTALLATION-PRODUCTION EQUIP.1220-1030 FLOW TESTING/WELL TESTS1220-1040 PERMITS / REGULATORY1220-1050 ENVIRONMENTAL & POLLUTION1220-1070 DAMAGES1220-1100 PITS/PIT LINERS1220-1130 OFFSITE DISPOSAL SERVICES1220-1530 WIRELINE SERVICE1220-1800 MEALS & ENTERTAINMENT1220-1900 PLUGGING & ABANDONMENT (DRY HOLE)1220-5050 PIPELINE CONNECTION CHARGES1220-7500 IDC - COMPLETION: NON-OPERATED1220-9250 OVERHEAD / INSURANCE1220-9260 OVERHEAD - COMLETION (CONTRA) 1220-9300 OVERHEAD - MAJOR CONSTRUCTION1220-9310 OVERHEAD MAJOR CONSTRUCTION-CONTRA 1220-9500 MISC. EXPENSES / CONTINGENCY1220-9700 AREA WATER FACILITY

$0





REMARKS:



1250 TANGIBLE COMPLETION COSTS1250-0250 PRODUCTION CASING1250-0300 LINERS1250-0350 TUBING1250-0400 FLOWLINES1250-0450 SUBSURFACE EQUIPMENT1250-0470 TANK BATTERY & ASSOCIATED EQUIP.1250-0510 TANKS1250-0520 DEHYDRATORS1250-0540 COMPRESSORS1250-0550 WELLHEAD EQUIPMENT1250-0580 SEPARATORS1250-0600 SURFACE PRODUCTION EQUIPMENT1250-0620 SURFACE PUMPING UNIT/PRIME MOVER1250-0650 DOWNHOLE PUMP-ARTIFICIAL LIFT EQUIP.1250-0700 MISC. DOWNHOLE EQUIPMENT1250-0750 GATHERING LINES1250-0850 TAX ON CAPITAL ITEMS1250-0950 OTHER EQUIPMENT1250-0960 SUCKER RODS1250-9500 MISC. EXPENSES / CONTINGENCY

$0

TOTAL COMPLETION COST $0

TOTAL WELL COST $143,800TOTAL WELL COST (Less P & A) $143,800
