InvestorsHub Logo
Followers 16
Posts 1503
Boards Moderated 0
Alias Born 05/03/2005

Re: DewDiligence post# 2395

Friday, 03/25/2011 8:08:59 AM

Friday, March 25, 2011 8:08:59 AM

Post# of 29406
Kadaicher can probably explain better, but i'll give a shot.

An exploratory well can become a production well. If memory is correct i believe this was the case for the Macondo well but in order to turn the exploration well into a production well BP would have brought in a different rig to re-enter the well, drill out the cement and recomplete the well. They also could have drilled production sidetracks off the initial well. Each rig requires its own drilling permit: one for exploration and another for recompletion/production. I also wouldn't be surprised if each sidetrack required a separate permit.

From what i see, there are many types of permits beyond a simple split between exploration and production drilling. For example, there are also permits for going into a production well to alter the well or infrastructure within the well, clean tubing, or inject stuff into the reservoir to stimulate production.


Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.