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Form W-1

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Status #: 825318 - 99
API #: 389-35877
Operator: 630555 - OXY USA WTP LP
Issued: 04/19/2017, Filed: Online
Lease Name: MANHATTAN 183-178-3S
Well #: 25HR, District: 08, County: REEVES
Filing Purpose: New Drill
Wellbore Profiles: Horizontal
The well mentioned in the problem response has not yet been plugged, therefore it is still included in the well count. (04/18/2017 10:57:21 AM)
Status: Approved View this form in Adobe Pdf Format View Current W-1 View this form in Adobe Pdf Format View Current W-1H    View this form in Adobe Pdf Format View Current Permit    View this form in Adobe Pdf Format View SWR 13 Formations
Completion Information
Well Status Code Spud Date Drilling Completed Surface Casing Date
W - Final Completion 05/18/2017 07/02/2017 05/19/2017
Field Name Completed Well Type Completed Date Validated Date
WOLFBONE (TREND AREA) Oil Well 07/02/2017 01/12/2018
General / Location Information
Basic Information:
Filing Purpose Wellbore Profiles Lease Name Well # SWR Total Depth Horizontal Wellbore Stacked Lateral Parent Well DP #
New Drill Horizontal MANHATTAN 183-178-3S 25HR SWR 36, SWR 37 Lease Line 14000 Allocation
Surface Location Information:
API # Distance from Nearest Town Direction from Nearest Town Nearest Town Surface Location Type
389-35877   Click here to search API Number. 24.8 miles S PECOS Land
GPS Coordinates - Datum: NAD 27 
Latitude Degrees: 31   Latitude Minutes: 04   Latitude Seconds: 56.10  
Longitude Degrees: -103   Longitude Minutes: 22   Longitude Seconds: 11.25  
Survey/Legal Location Information:
Section Block Survey Abstract # County
183 1 H.&T.C. R.R. CO. REEVES
Township League Labor Porcion Share Tract Lot
Perpendicular surface location from two nearest designated lines:
Perpendiculars Distance Direction Distance Direction
Survey Perpendiculars 239.0 feet NORTH 1544.0 feet EAST
Permit Restrictions:
Code Description
29 This well must comply to the new SWR 3.13 requirements concerning the isolation of any potential flow zones and zones with corrosive formation fluids. See approved permit for those formations that have been identified for the county in which you are drilling the well in.
30 The designated interval for one or more of the fields approved in this permit appears to overlap with the designated interval of another field or fields in this district. In the case of conflicting designated intervals you will be required to be consistent in field designation on this lease. Further, if the designated interval overlap of wells on this lease results in an actual or potential double assignment of reservoir and the applicant cannot conclusively demonstrate that there is no double assignment, the permitted well may not be assigned an allowable until the conflict is resolved. Because of the overlapping designated intervals in this area, issuance of this permit does not guarantee that the completion of the well will be approved or that the well will receive an allowable in any given field, even if that field is listed on the approved permit application.
Fields
District Field Name Field # Completion Depth Lease Name Well # Well Type Acres Distance to nearest well Distance to nearest Lease Line SWR Off-lease Surface Location Off-lease Penetration Point Pooled/Unitized Horizontal Severance Depth
08 WOLFBONE (TREND AREA)
Primary Field
98359800 14000 MANHATTAN 183-178-3S 25HR Oil or Gas Well 643.01 15.0 feet 200.0 feet SWR 36, SWR 37 Lease Line N N N
Perpendiculars Distance Direction Distance Direction
Surface Lease Lines 239.0 feet NORTH 1544.0 feet EAST
Section: 183   Block:1   Survey:H.&T.C. R.R. CO.
Abstract #:     County: REEVES
Name
Profile Distance Direction Distance Direction
TH1 Terminus Point Lease 50.0 feet from the SOUTH line and 1154.0 feet from the WEST line
Survey 2597.0 feet from the NORTH line and 1489.0 feet from the EAST line
  Penetration Point Lease 50.0 feet from the NORTH line and 1489.0 feet from the EAST line

Field Restrictions:
Code Description
02 This is a hydrogen sulfide field. This well shall be drilled in accordance with SWR 36.
Exceptions
Field Exception Case Docket Number Resolution
WOLFBONE (TREND AREA) SWR 37 Lease Line 0304596
Comments
Remark Date Entered Entered By
Commission Staff expresses no opinion as to whether a 100% ownership interest in each of the leases alone or in combination with a "production sharing agreement" confers the right to drill across lease/unit lines or whether a pooling agreement is also required. However, until that issue is directly addressed and ruled upon by a Texas court of competent jurisdiction it appears that a 100% interest in each of the leases and a production sharing agreement constitute a sufficient colorable claim to the right to drill a horizontal well as proposed to authorize the removal of the regulatory bar and the issuance of a drilling permit by the Commission, assuming the proposed well is in compliance with all other relevant Commission requirements. Issuance of the permit is not an endorsement or approval of the applicant's stated method of allocating production proceeds among component leases or units. All production must be reported to the Commission as production from the lease or pooled unit on which the wellhead is located and reported production volume must be determined by actual measurement of hydrocarbon volumes prior to leaving that tract and may not be based on allocation or estimation. Payment of royalties is a contractual matter between the lessor and lessee. Interpreting the leases and determining whether the proposed proceeds allocation comports with the relevant leases is not a matter within Commission jurisdiction but a matter for the parties to the lease and, if necessary, a Texas court of competent jurisdiction. The foregoing statements are not, and should not be construed as, a final opinion or decision of the Railroad Commission. 04/10/2017 06:49:57 AM
PERMITTING NEW #25H REPLACEMENT LOCATION. 04/10/2017 07:42:46 AM FILER
There have been problems identified with this permit (see problem letter attachment). Notification sent. 04/17/2017 03:57:20 PM RRC STAFF
Problems identified with this permit are resolved. 04/18/2017 10:56:48 AM RRC STAFF
We spud the 25H but couldn't get passed 1600 ft so we will be plugging the well. I shouldn't have said we were replacing it because this well will be a new well with new API number. 04/18/2017 10:56:55 AM RRC STAFF
The well mentioned in the problem response has not yet been plugged, therefore it is still included in the well count. 04/18/2017 10:57:21 AM RRC STAFF
Attachments
Attachment Type File Path Associated Fields and/or Plats
P-16 MANHATTAN 183-178-3S #25HR DP P16_1.tif
P-16 MANHATTAN 183-178-3S #25HR DP P16_2.tif
P-16 P16 PAGE 2A.tif
PLAT #1 (Paper Size: LTR) TX_REEVES_MANHATTAN_183-142-3S_25HR_REV.tif WOLFBONE (TREND AREA)
As Submitted W-1 AsSubmittedW1-4-10-2017.pdf
Permit Problem Letter problem_letter_4-17-2017.pdf
As Approved W-1 AsApprovedW1-4-19-2017.pdf
As Approved Permit AsApprovedPermit-4-19-2017.pdf
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