DAILY & WOODS A PROFESSIONAL LIMITED LIABILITY COMPANY ATTORNEYS AT LAW

Transcription

1 JERRY L. CANFIELD, P.A. THOMAS A. DAILY, P.A. WYMAN R. WADE, JR., P.A. DOUGLAS M. CARSON, P.A. ROBERT R. BRIGGS, P.A. C. MICHAEL DAILY, P.A.!" L. MATTHEW DAVIS, P.A. COLBY T. ROE Also Licensed in Oklahoma! Also Licensed in Wyoming & North Dakota " Certified Mediator DAILY & WOODS A PROFESSIONAL LIMITED LIABILITY COMPANY ATTORNEYS AT LAW KMW BUILDING 58 SOUTH SIXTH STREET P.O. BOX 446 FORT SMITH, AR 7292 TELEPHONE (479) FAX (479) JAMES E. WEST DALE CARLTON PHILLIP E. NORVELL OF COUNSEL HARRY P. DAILY (886965) JOHN P. WOODS (886976) JOHN S. DAILY (92987) BEN CORE (92427) May 2, 22 Arkansas Oil and Gas Commission 3 Natural Resources Drive, Suite 2 Little Rock, Arkansas 7225 Re: ORDER REFERENCE NO Application of SEECO, Inc. for an exceptional location pursuant to Arkansas Oil and Gas Commission General Rule B43(i)(5) for its Crowell 5 #723H Well located in Sections 23, 4, 5, and, Township North, Range 5 West, Van Buren County, Arkansas Commissioners: SEECO, Inc., 235 N. Sam Houston Parkway E, Houston, TX 7732, hereby applies to the Arkansas Oil and Gas Commission as follows:. The Applicant proposes the drilling and completion of a cross unit horizontal well, the Crowell 5 #723H ( Crowell #7 ) Well located in Sections 23, 4, 5, and, Township North, Range 5 West, Van Buren County, Arkansas. The projected perforated lateral of the proposed Crowell #7 Well is expected to be 556 feet from the toe perforation of the Haines 5 #35H Well, located in Section 5, Township North, Range 5 West; 567 feet from the perforated lateral of the Love, John 5 # H Well, located in Section, Township North, Range 5 West; and, 357 feet from the toe perforation of the Clark 5 #4H Well, located in Sections and, Township North, Range 5 West. The Applicant requests that it be granted a location exception to enable it to produce the Crowell #7 Well notwithstanding such encroachments, provided that the perforated wellbore of the Crowell #7 well is no less than 3 feet from any other wellbore. 2. The Applicant has solicited spacing waivers from most of the persons who have the right to drill within Sections,, 4, 5 and 23, Township North, Range 5 West, but has not yet obtained a waiver from every such owner. 3. The Applicant states that the granting of this application will be protective of the correlative rights of all interested parties and will prevent waste of natural gas by permitting the most efficient method of developing the resource within the governmental sections which are the subject of this application.

2 4. The names and addresses of parties interested in this proceeding are set forth in Exhibit "A" attached hereto and made a part hereof. 6. Please note the appearance of Thomas A. Daily of Daily & Woods, P.L.L.C., P.O. Box 446, Fort Smith, Arkansas, 7292, on behalf of applicant. Very truly yours, Thomas A. Daily jmt

3 Crowell 5 #723H Working Interest Owner List EXHIBIT A Mr. Ronald C. Agel 279 Marlborough Street Boston, Massachusetts 26 BHP Billiton Petroleum (Fayetteville), LLC. 36 Post Oak Boulevard Houston, Texas 7756 Attn: Fayetteville Joint Interest Land Bowles Properties, Inc. 63 E. Methvin Street Longview, Texas Attn: Mr. Dennis Bowles, Sr. BP America Production Company 5 Westlake Park Drive Houston, Texas Attn: Ms. Kimberly Moss Mr. Glendon Bryant 368 Highway 92 Center Ridge, Arkansas 7227

4 Daniels Petroleum Company 499 Blake Street, Suite 7K Denver, Colorado 822 Attn: Mr. Barrett D. Baker Gunsmoke Production Company 72 Wazee Street, Suite 2E Denver, Colorado 822 Attn: Mr. Lawson Stiff, Jr. Mr. James Love 46 Rixie Road, Lot 3 North Little Rock, Arkansas 7227 Mr. Mark Love Elcan Drive Cabot, Arkansas 7223 Mr. Phil Love 2822 E. Kiehl Avenue Sherwood, Arkansas 722 Panhandle Oil and Gas, Inc. 54 N. Grand Boulevard, Suite 3 Oklahoma City, Oklahoma 732

5 Attn: Mr. Ben Spriestersbach XTO Energy, Inc., Agent for Exxon Mobil Production Company 8 Houston Street Fort Worth, Texas Attn: Mr. Braden White

6 Crowell 5 #723H Before Payout After Payout Waiver Rec'd? SEECO, Inc % % BHP Billiton Petroleum (Fayetteville), LLC..6398%.6398% BP America Production Company % % XTO Energy, Inc., Agent for Exxon % % Panhandle Oil and Gas, Inc..8444%.8444% Daniels Petroleum Company.23346%.23346% Gunsmoke Production Company.23346%.23346% Ron Agel.%.4669% Bowles Properties, Inc %.82932% Glendon Bryant.2547%.2547% Mark Love.4646%.4646% James Love.4646%.4646% Phil Love.4646%.4646% Interest consenting to planned spacing Haines 5 #35H Before Payout After Payout SEECO, Inc % 96.57% BHP Billiton Petroleum (Fayetteville), LLC % % BP America Production Company % % Interest consenting to.. planned spacing Clark 5 #4H Before Payout After Payout SEECO, Inc % % BHP Billiton Petroleum (Fayetteville), LLC % % BP America Production Company % % XTO Energy, Inc., Agent for Exxon % % Panhandle Oil and Gas, Inc % %

7 Daniels Petroleum Company.9467%.9467% Gunsmoke Production Company.9468%.9468% Ron Agel.28935%.28935% Bowles Properties, Inc % % Mark Love.%.2984% James Love.%.2984% Phil Love.%.2984% Interest consenting to planned spacing Love John 5 #H Before Payout After Payout SEECO, Inc. 85.6% % BHP Billiton Petroleum (Fayetteville), LLC % % BP America Production Company.89453%.89453% XTO Energy, Inc., Agent for Exxon.6%.6% Panhandle Oil and Gas, Inc. 5.76% 5.76% Daniels Petroleum Company.6%.6% Gunsmoke Production Company.6%.6% Ron Agel.32%.32% Mark Love.%.46679% James Love.%.46679% Phil Love.%.46679% Interest consenting to planned spacing

8 Crowell 5 7and823H Waiver Section, Township N, Range 5W, Van Buren County;Section, Township N, Range 5W, Van Buren County Section 4, Township N, Range 5W, Van Buren County;Section 5, Township N, Range 5W, Van Buren County Section 23, Township N, Range 5W, Van Buren County 357' " LOVE JOHN 5 H È CLARK 5 4H CLARK 5 2H = 7 È =7 È " 44' 567' 556' 5 556' Crowell 5 723H Crowell 5 823H 4 " HAINES 5 35H È 7 7 H 533' Legend Proposed Well 7 First & Last Perf Locations = H Bottom Hole Surface Hole Scale: " = 2, ' :24, 2,, 2, Feet Created by Larry Saranthus, GIS Technician 2.2. Perforated Lateral Path Existing Well " Existing Surface È Existing BHL Existing WellBore Existing Completed Lateral 235 N. Sam Houston Pkwy E. Suite 25 Houston, Texas 7732

9 EXHIBIT B Section 23 Township North, Range 5 West Van Buren County, Arkansas KIDD 5 #22PHST CLARK 5 #H CLARK, ROBERT 5 #73H CLARK, ROBERT 5 #63H2 LINKINOGGER 5 #39H MEAZLE 4 #58H7 LOVE, JOHN 5 #2H LOVE, JOHN 5 #H CLARK, ROBERT 5 #53H2 KNIGHT 5 #22H KNIGHT 5 #32H DNPLLC 4 #37H7 LINKINOGGER 5 #49H WHEELER 5 #26H9 CLARK 5 #4H CLARK 5 #2H KNIGHT 5 #82H 2 KNIGHT 5 #62H KNIGHT 5 #2H KLING 4 #27H KNIGHT 5 #72H HAINES 5 #25H HAINES 5 #5 7 8 AMMANNKEELING 5 #824H3 AMMANNKEELING 5 #724H3 CLARK, ROBERT 5 #43H AMMANNKEELING 5 #624H3 AMMANNKEELING 5 #24H3 AMMANNKEELING 5 #924H3 CLARK, ROBERT 5 #33 CLARK, ROBERT 5 #23H DNPLLC 4 #47H7 5 CLARK, BUNEVA 5 #34H 4 3 HONEYCUTT 5 #822H5 CLARK, BUNEVA 5 #44H CLARK, BUNEVA 5 #54H CLARK, BUNEVA 5 #24H HAINES 5 #45H HONEYCUTT 5 #522H6 HAINES 5 #35H N 5W HONEYCUTT 5 #622H2 HONEYCUTT 5 #22H HAINES 5 #75H22 22 CROWELL 5 #23HST BLACK 5 #32H SEECO,Inc. s Proposed Crowell 5 723H, & 8 23H HONEYCUTT 5 #222H BLACK 5 #92H27 BLACK 5 #72H27 CROWELL 5 #223H CROW, RANDALL 5 #227H CROW, RANDALL 5 #627H CLARK, BUNEVA 5 #4H CROWELL 5 #423PHST CROWELL 5 #323H CROWELL 5 #523H HAINES 5 #55H22 CROWELL 5 #623H HAINES 5 #65H22 23 AMMANNKEELING 5 #324H AMMANNKEELING 5 #424H AMMANNKEELING 5 #524H23 MEAZLE 4 #48H CLARK, ROBERT 5 #3H MEAZLE 4 #38H9 MERRYMAN 4 #59H MERRYMAN 4 #49H MERRYMAN 4 #39H 24 AMMANNKEELING 5 #24H AMMANNKEELING 5 #224H CROW, RANDALL 5 #727H CROW, RANDALL 5 #827H BLACK 5 #32H27 CROW, RANDALL 5 #27H HONEYCUTT 5 #722H26 *Planned wells outside of central section of display may be subject to further revision for spacing. HOGUEBAKER 4 #3H Map Prepared By: Kelvin Latson Sr Lower Fayetteville UPD Map Geologist: Katherine Hahn

10 EXHIBIT C Section 23 Township North, Range 5 West KINOGGER 5 #39H LOVE, JOHN 5 #H WHEELER 5 #26H9 LOVE, JOHN 5 #2H 3 Van Buren County, Arkansas CLARK 5 #4H 4 KIDD 5 #22PHST CLARK 5 #H CLARK 5 #2H CLARK, ROBERT 5 #53H2 CLARK, ROBERT 5 #73H CLARK, ROBERT 5 #63H2 MEAZLE 4 #58H7 KNIGHT 5 #22H KNIGHT 5 #32H KNIGHT 5 #82H 2 KNIGHT 5 #62H KNIGHT 5 #2H DNPLLC KLING KNIGHT 5 #72H AMMANNKEELING 5 #824H3 DNPL UTT 5 #522H6 HAINES 5 #25H HAINES 5 #5 7 8 AMMANNKEELING 5 #724H3 AMMANNKEELING 5 #624H3 AMMANNKEELING 5 #24H3 AMMANNKEELING 5 #924H3 CLARK, ROBERT 5 #33 CLARK, ROBERT 5 #43H CLARK, ROBERT 5 #23H 4 CROWELL 5 #23HST CK 5 #32H SEECO,Inc. s Proposed 5 CLARK, BUNEVA 5 #34H 4 3 CLARK, BUNEVA 5 #54H CLARK, BUNEVA 5 #44H HONEYCUTT 5 #822H5 CLARK, BUNEVA 5 #24H HAINES 5 #35H CLARK, BUNEVA 5 #4H CLARK, ROBERT 5 #3H MEAZLE 4 #48H N 5W MEAZLE 4 #38H9 CROWELL 5 #423PHST CROWELL 5 #323H CROWELL 5 #523H CUTT 5 #622H2 HAINES 5 #55H22 MERRYMAN 4 #59H HONEYCUTT 5 #22H BLACK 5 #92H27 BLACK 5 #72H27 CROWELL 5 #223H CROW, RANDALL 5 #227H HAINES 5 #45H HAINES 5 #75H22 22 Crowell 5 723H, & 8 23H HONEYCUTT 5 #222H AMMANNKEELING 5 #324H CROW, RANDALL 5 #627H 5 4 AMMANNKEELING 5 #424H AMMANNKEELING 5 #24H BLACK 5 #32H27 AMMANNKEELING 5 #524H23 CROW, RANDALL 5 #727H CROWELL 5 #623H HAINES 5 #65H AMMANNKEELING 5 #224H MERRYMAN 4 #49H MERRYMAN 4 #39H Map Prepared By: Kelvin Latson Sr Lower Fayetteville Structure Map Geologist: Katherine Hahn

11 EXHIBIT D Section 23 Township North, Range 5 West Van Buren County, Arkansas NKINOGGER 5 #39H LOVE, JOHN 5 #H LOVE, JOHN 5 #2H KIDD 5 #22PHST CLARK 5 #H CLARK, ROBERT 5 #73H CLARK, ROBERT 5 #63H2 MEAZLE 4 #58H7 KNIGHT 5 #22H CLARK, ROBERT 5 #53H2 KNIGHT 5 #32H DNPLLC 2 KNIGHT 5 #82H KLING WHEELER 5 #26H9 CLARK 5 #4H CLARK 5 #2H KNIGHT 5 #62H KNIGHT 5 #2H YCUTT 5 #522H6 HAINES 5 #25H HAINES 5 #5 HAINES 5 #45H 7 8 CLARK, BUNEVA 5 #34H KNIGHT 5 #72H AMMANNKEELING 5 #824H3 AMMANNKEELING 5 #724H3 CLARK, ROBERT 5 #43H AMMANNKEELING 5 #624H3 AMMANNKEELING 5 #24H3 AMMANNKEELING 5 #924H3 CLARK, ROBERT 5 #33 CLARK, ROBERT 5 #23H CLARK, BUNEVA 5 #54H CLARK, BUNEVA 5 #44H HONEYCUTT 5 #822H5 CLARK, BUNEVA 5 #24H DNP HAINES 5 #35H CLARK, BUNEVA 5 #4H N 5W CROWELL 5 #423PHST CROWELL 5 #323H CROWELL 5 #523H YCUTT 5 #622H2 HAINES 5 #55H22 HONEYCUTT 5 #22H CROWELL 5 #623H HAINES 5 #75H22 HAINES 5 #65H CROWELL 5 #23HST CK 5 #32H SEECO,Inc. s Proposed Crowell 5 723H, & 8 BLACK 5 #92H27 23H HONEYCUTT 5 #222H BLACK 5 #72H27 CROWELL 5 #223H CROW, RANDALL 5 #227H CROW, RANDALL 5 #627H AMMANNKEELING 5 #324H AMMANNKEELING 5 #424H AMMANNKEELING 5 #524H MEAZLE 4 #48H CLARK, ROBERT 5 #3H MEAZLE 4 #38H AMMANNKEELING 5 #24H AMMANNKEELING 5 #224H MERRYMAN 4 #59H MERRYMAN 4 #49H MERRYMAN 4 #39H 3 CROW, RANDALL 5 #727H BLACK 5 #32H27 CROW, RANDALL 5 #27H *Planned wells outside of central section of display may be subject to further revision for spacing. Map Prepared By: Kelvin Latson Sr Lower Fayetteville Isopach Map Geologist: Katherine Hahn