Brammer Broadcast - NAPE, Cotton Valley Horizontal Drilling, JOA Update, Industry Training

As new and veteran operators attempt to capitalize on the economic productivity of the Cotton Valley reservoir utilizing horizontal drilling techniques, Brammer Engineering is proud to share its history of success and experience as this historic natural gas play continues to develop. Since managing our first Cotton Valley horizontal well in 2007, Brammer Engineering has drilled over 200 Cotton Valley horizontal wells, and we can confidently say we have successfully increased drilling performance while lowering drilling costs. We have provided our full array of services on this type well for multiple clients, so we are well-versed in all phases of developing and producing your Cotton Valley prospect.

A few of the challenges faced in drilling Cotton Valley horizontals include location selection, drilling through intermediate formations that can either be depleted or over-pressured by offset saltwater injection, maintaining build rates through shale stringers, steering through highly abrasive sandstone while avoiding shale stringers, and reducing unnecessary trips for failed tools, worn bits, or washouts. Overcoming these challenges requires teamwork, communication, an open mind willing to try new techniques, and dedication to reducing drilling days and costs. Read More

The American Association of Petroleum Landmen is introducing a new form 610-2015 Joint Operating Agreement that covers the operations for both Horizontal and Vertical wells. This new form should roll out sometime in 2016. Some of the most notable highlights of the new agreement include changes to the 1989 form's sections relating to Definitions, Article VI Drilling and Development, and other miscellaneous items. Within the Definitions section of the new agreement form, new definitions have been created for the terms "Affiliate," "Extension," and "Workover." The AAPL made revisions to the definition of "Lateral" and "Deepen" in the context of horizontal wells to account for the added "Extension" definition. They have also consolidated multiple terms that have the same meaning. For example, "Consenting Party" and "Drilling Party" have been combined into one term. Changes within Article VI will require uniform minimal content for AFE's covering both vertical and horizontal wells. They have also added a new section in VI (B) to address "Extensions" of horizontal wells. This is to eliminate any confusion from the definition of "Deepening" on the previous horizontal form. Miscellaneous items addressed by the new form include (a) eliminating special preference of operations for horizontal wells, (b) increasing the timing for payment of advances, (c) the usury protection clause, (d) electronic notice provisions, (e) clarification that Operator will defend suits and charge the joint account (while also giving non-operators the option to defend at its own cost), and (f) if there is a transfer of interest after the Transferor has consented to the operation, both Transferor and Transferee remain jointly and severally liable.

Act No. 253, La. R.S. 30-9(B), effective August 1, 2015, amended the historical definition of a unit. Now the statute provides:

"A drilling unit, as contemplated herein, means the maximum area which may be efficiently and economically drained by the well or wells designated to serve the drilling unit as the unit well, substitute unit well, or alternate unit well."

"Hope Springs Eternal"
Ross Fountain at Butchart Gardens
Brentwood Bay, British Columbia, Canada

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