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Re: techno53 post# 20420

Tuesday, 01/31/2012 4:07:51 PM

Tuesday, January 31, 2012 4:07:51 PM

Post# of 21288
There's lots of reasons a well might not be drilled, but it usually has to do with money somehow and your reason would be included. Could be that reports or views by any people or partners have that it's just not feasible or economically viable to do so. Most if not all of Gougers oil wells are only what is labeled stripper or marginal wells and the cost to pump the few barrels out is meeting or exceeding any profits (also with violations or severances occurring regularly).

Just because an oil well is there or possibilities that a good amount of oil can be had from the reserve field, does not mean that it is some great gusher. Technology has gotten better in that industry, but lousy oil wells still get drilled.

But if and when Sanger site is drilled, there will be reports and "Potential Proration" results that has to be filed and adhered to. If production goes over that data, more violations will occur so any production will be recorded and limited to those prorations.

Then there is lease liability costs for "working interest" in any wells. Those also eat at profits and can be a major expense.

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