021-2009-01 applications archive... · resume of efforts section 20, township 9 north, range 10...
TRANSCRIPT
JERRY L. CANFIELD, P.A.
THOMAS A. DAILY, P.A.
WYMAN R. WAD E, JR. , P.A.
DOUGLAS M. CARSON, P.A.
ROBERT R. BRIGGS, P.A. † *
C . MICHAEL DAILY †
COBY W. LOGAN
L. MA TTHEW DAV IS
* Fayetteville Office
† Also Licensed in Oklahoma
DAILY & WOODSA PROFESSIONAL LIMITED LIABILITY COMPANY
ATTORNEYS AT LAW
KMW BUILDING58 SOUTH SIXTH STREET
P.O. BOX 1446FORT SMITH, AR 72902
TELEPHONE (479) 782-0361FAX (479) 782-6160
______________
3538 N. HIGHWAY 112, SUITE 200FAYETTEVILLE, AR 72703TELEPHONE (479) 582-0361
FAX (479) 251-8111
JAMES E. WEST
PHILLIP J. NORV ELL *
DALE CARLTON *
OF COUNSEL
_______
HARRY P. DA ILY (1886-1965)
JOHN P. WO ODS (1886-1976)
JOHN S. DAILY (1912-1987)
January 6, 2009
Arkansas Oil and Gas Commission301 Natural Resources Drive, Suite 102Little Rock, Arkansas 72205
Re: ORDER REFERENCE NO. 021-2009-01
Application of XTO Energy Inc. for Integration of All Unleased Mineral Interestsand Non-consenting Working Interests in a unit described as Section 20,Township 9 North, Range 10 West, Cleburne County, Arkansas
Commissioners:
XTO Energy Inc., 810 Houston Street, Fort Worth, TX 6102, hereby applies to theArkansas Oil and Gas Commission for the integration of all unleased mineral interestsand non-consenting working interests in its proposed drilling unit which is describedabove.
1. The proposed drilling unit is an exploratory unit as defined in paragraph (f) ofArkansas Oil and Gas Commission General Rule B-43. Persons who own at least anundivided 50% interest in the right to drill and produce oil and/or gas from the totalproposed unit area have agreed to participate in Applicant’s proposed well. Applicantproposes to drill a horizontal well from a non-exceptional surface location in theSouthwest Quarter down to a non-exceptional bottom hole location in the NorthwestQuarter of the above-described unit. The proposed well will be drilled to a total verticaldepth of 4,683 feet to test the Fayetteville Shale Formation. Applicant has obtainedone or more oil and gas leases covering its proposed drill site.
2. Applicant owns oil and gas leases covering a substantial part of the proposedunit. Applicant should be named as operator of the well. The person or persons to beintegrated are shown in Exhibit "A" attached hereto and made a part hereof.
3. Applicant has made diligent efforts to negotiate with the non-participatingleasehold working interest owners, each of said parties owning an oil and gas leaseholdinterest in the proposed unit, but applicant has been unable to secure an assignment of
the leasehold interest on an equitable basis or to secure participation by said parties inthe drilling of the proposed well.
4. Applicant states that it has made repeated efforts to negotiate with the owners ofthe unleased mineral interests in order to agree on a plan of development of saiddrilling unit; that those owners have been offered an opportunity to participate in theproposed well; that they have been offered a fair and reasonable bonus considerationfor the execution of an oil and gas lease covering their interests; that they have beenfurnished with a proposed oil and gas lease and a copy of the AAPL operatingagreement form which applicant proposes to use in connection with the drilling of saidwell; but that all of the efforts of the applicant have produced no agreement by saidparties.
5. Applicant states that it is in the best interest of conservation and the protection ofcorrelative rights of all interested parties that the proposed unit be developed for oil andgas production without undue delay.
6. In order that applicant may proceed with the orderly development of said unit,applicant hereby requests that the Arkansas Oil and Gas Commission issue its order, inthe alternative, that:
(a) The owners of non-consenting oil and gas leasehold workinginterests indicated above shall participate in the cost of drilling,testing and completion of the test well to be drilled by applicant onthe captioned unit, subject to the terms of an Operating Agreementwhich substantially employs the terms of the AAPL Operatingagreement, with a COPAS attached.
(b) All of the non-consenting oil and gas leasehold working interestswithin the proposed unit shall be force pooled and integrated intosaid unit, and a reasonable risk factor shall be established andassessed as a penalty against said integrated interest.
7. Applicant further states that due to the risks and costs inherent in the drilling ofthe proposed well, the Commission should fix a reasonable risk factor to be assessedas a penalty against the integrated interests within the unit. The risk factor should beapplied to the proportionate cost and expense of drilling, completing and equipping thewell, which would have been borne by the interest of said parties had they participated. Applicant requests that if the integrated parties do not elect within 15 days afterissuance of the Commission's order as between alternatives (a) and (b), it shall beassumed that the integrated parties elected alternative (b) in lieu of the right toparticipate in the working interest in said unit.
8. Applicant requests that the Arkansas Oil and Gas Commission set this matter forpublic hearing, and after same, issue its order, in the alternative, that:
(a) Each of the owners of the unleased mineral interests indicatedabove execute and deliver to applicant a one year oil and gaslease, on an AAPL lease form, for a bonus consideration of$1,875.00 per net mineral acre to be paid as fair and reasonablecompensation in lieu of the right to participate in the workinginterest in said unit, and that said oil and gas lease provide for a1/5 royalty on oil and gas.
(b) Each of the owners of unleased mineral interests indicated abovebe force pooled and integrated into the captioned unit withassessment of a reasonable risk factor penalty against theirinterest.
(c) The owners of unleased mineral interests shall participate in thecost of drilling, testing and completion of the test well to be drilledby applicant on the captioned unit, subject to the terms of anoperating agreement which substantially employs the terms of theAAPL Operating Agreement.
Applicant further requests that said mineral owners be required to elect within fifteen(15) days after issuance of the Commission's order which method will be pursued in thedevelopment of the above described unit, and, in the event no election is made, that itshall be assumed that the owner of said unleased mineral interest has elected to accepta bonus of $1,875.00 per net mineral acre as compensation in lieu of the right toparticipate in the working interest in said unit, and with the royalty to be 1/5.
9. Applicant further states that due to the risks and costs inherent in the drilling ofthe proposed well, the Commission should fix a reasonable risk factor to be assessedas a penalty against the integrated interests within the unit. The risk factor should beapplied to the proportionate cost and expenses of drilling, completing and equipping thewell, which would have been borne by the interest of said parties had they participated.
10. Applicant further requests that this Commission's order specifically provide thatany party electing either to participate or be force pooled subject to recoupment of arisk factor penalty be bound by the terms of the attached AAPL Operating Agreementfor the life of commercial production within the unit so that all future unit operationsmight be proposed pursuant to the provisions of such agreement without the necessityof future action by this Commission.
11. Applicant also requests that said order be made applicable to any unknownspouse, heir, devisee, personal representative, successor or assign of said parties.
12. The names and addresses of parties interested in this proceeding are set forth inExhibit "A" attached hereto and made a part hereof.
13. Please note the appearance of Thomas A. Daily of Daily & Woods, P.L.L.C.,P.O. Box 1446, Fort Smith, Arkansas, 72902, on behalf of applicant.
Very truly yours,
Thomas A. Dailyjmt
RESPONDENTS LIST
Integration Application Section 20 – 9N – 10W Cleburne County, Arkansas Leasehold Owner: Chesapeake Exploration, L.L.C. Strata Minerals, Inc. BP America Production Company Petrohawk Properties, LP Mayhem Oil and Gas, Inc. SEECO, Inc. Unleased Mineral Owner Juanita W. Clark Patricia Diane Myers Susan Jayne Hestir Linda Lee Brown and William Dean Brown Holly Elizabeth Mathisen and Mark Hemphill Mathisen Brian Edward Galloway Clifford Moiser and Antoinette Moiser David Schoolcraft & Marie Schoolcraft Dolphus King and Prediuth King EXXONMobil Oil Corp., Successor in interest to General Crude Oil Company F. A. Sansome Franklin Vaughan & Ruth Vaughan
RESPONDENTS LIST
Integration Application Section 20 – 9N – 10W Cleburne County, Arkansas Unleased Mineral Owner – continued: Giva Lynda Gresham (now known as Giva Lynda Gresham Perry) Kathleen Riedel Gresham Kent Krug and Karen A. Krug L. B. Moon Paul E. Smith Sanford D. Cothren and Barbara R. Cothren TEX/CON Oil & Gas Company EEX Operating, L.P. EEX Operating LLC Newfield Exploration Company Walter Smith (a/k/a Walter L. Smith) Catherine Cary James Cary John Cosden Cary Loren Cary August Margo Thorning Mary L. Zill and Karl Zill W. Bruton Thorning a/k/a W. Burton Thorning Unknown Heirs and Assigns of Ima T. Weatherson Unknown Heirs and Assigns of W. Bruton Thorning a/k/a W. Burton Thorning
RESPONDENTS LIST
Integration Application Section 20 – 9N – 10W Cleburne County, Arkansas Unleased Mineral Owner – continued: Unknown Heirs and Assigns of Dolphus King Unknown Heirs and Assigns of Prediuth King Unknown Heirs and Assigns of F. A. Sansome Unknown Heirs and Assigns of L. B. Moon
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST CLEBURNE COUNTY, ARKANSAS
Juanita W. Clark • 12/11/2008- E-mailed proposal to attorneys offering $1875/nma, 5 year
Term and 20% • 12/15/2008- Heirs accepted our proposal and lease packages were e-mailed
On this date
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST CLEBURNE COUNTY, ARKANSAS
Patricia Diane Myers • 12/11/2008- E-mailed proposal to attorneys offering $1875/nma, 5 year
Term and 20% • 12/15/2008- Heirs accepted our proposal and lease packages were e-mailed
On this date
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST
CLEBURNE COUNTY, ARKANSAS
Susan Jayne Hestir • 12/11/2008- E-mailed proposal to attorneys offering $1875/nma, 5 year
Term and 20% • 12/15/2008- Heirs accepted our proposal and lease packages were e-mailed
On this date
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST CLEBURNE COUNTY, ARKANSAS
Linda Lee Brown & William Dean Brown, her husband • 12/11/2008- E-mailed proposal to attorneys offering $1875/nma, 5 year
Term and 20% • 12/15/2008- Heirs accepted our proposal and lease packages were e-mailed
On this date
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST CLEBURNE COUNTY, ARKANSAS
Holly Elizabeth Mathisen & Mark Hemphill Mathisen, her husband • 12/11/2008- E-mailed proposal to attorneys offering $1875/nma, 5 year
Term and 20% • 12/15/2008- Heirs accepted our proposal and lease packages were e-mailed
On this date
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST
CLEBURNE COUNTY, ARKANSAS
Brian Edward Galloway
• 11/5/08 - Checked public records for contact info. All phone numbers have been disconnected.
• 11/6/08 - Sent lease package to address of record.
• 11/19/08 - Spoke with neighbors, they offered no help.
• 12/10/08 - Landman sent Agent to last known address they did not know of him.
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST
CLEBURNE COUNTY, ARKANSAS
Sherman B. Chickering (life estate); remainderman: Catherine Cary
• 9/24/08 – Agent was told that a Revised Lease form from landowners attorney would be forthcoming
• 10/6/08 - Agent requested revised lease form
• 10/20/08 – Agent received terms requested by landowner.
• 10/20/08 – Agent rejects landowner’s terms and informs landowners via their attorney that XTO would be integrating interest. Attorney was asked to advise whether XTO Agent should continue to contact him or deal directly with landowner. Agent received no response.
• 11/21/08- Did search for landowner contact info, found 1 working phone number, left message.
• 11/22/08 - Left message explaining reason for call. Got a return call, that I had the wrong number – they had never heard of Catherine Cary.
• 11/24/08 – Agent sent letter with offer to the address of record.
• 12/1/08 - Spoke with Catherine’s brother, James. He has had direct contact with XTO thru the family Attorney. He directed that I should contact XTO for specifics.
• 12/11/08 – Agent sent letter to landowners via attorney requesting decision on accepting XTO Lease offer.
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST CLEBURNE COUNTY, ARKANSAS
Clifford Moiser and Antoinette Moiser
• 11/5/08 - Checked public records for contact info. Left message
• 11/6/08 - Sent lease package to address of record.
• 11/17/08 - Left message.
• 11/29/08 - Left message
• 12/10/08 - Not interested… stop calling. If they had wanted to lease they would have sent our lease offer back.
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST
CLEBURNE COUNTY, ARKANSAS
David Schoolcraft and Marie Schoolcraft
• 11/5/08 - Checked public records for contact info. Left messages
• 11/11/08 - Sent lease package to address of record.
• 11/17/08 - Left messages.
• 11/24/08 - Wrong phone numbers. Lady who answered was a relative, but refused to provide any information. Says they don’t live at that address any more.
• 12/9/08 - Field agent is verifying information provided above.
• 12/15/08- Sent letter to last known address
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST CLEBURNE COUNTY, ARKANSAS
Dolphus King & Prediuth King, both apparently deceased
• 11/5/08 - Checked public records for contact info. Found no working numbers.
• 11/7/08 - Sent lease package to address of record.
• 11/11/08 - Called son’s number and left message.
• 12/3/08 - Field agent went to location. Appears no one lives there.
• 12/9/08 - Spoke with son. Both are deceased and the property is tied up with an estate fight. He stated that he will not lease until it is settled.
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST
CLEBURNE COUNTY, ARKANSAS
EXXONMobil Oil Corp (successor in interest to General Crude Oil Co.) (for Curative purposes only)
• 12/11/08 – Asked for copy of Agreement between General Crude and Mobil who becomes EXXONMobil.
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST CLEBURNE COUNTY, ARKANSAS
F.A. Sansome, possibly deceased
• 11/5/08 - Checked numerous public records for contact info. Found no information.
• 11/7/08 - Checked vital statistics sites. Found nothing definitive.
• 11/11/08 - Spoke with land owner. Did not know the name.
• 12/3/08 - Called neighbors of subject property they knew nothing of him.
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST
CLEBURNE COUNTY, ARKANSAS
Franklin Vaughan and Ruth Vaughan
• 11/5/08 - Checked numerous public records for contact info. Found no information.
• 11/7/08 - Checked vital statistics sites. Found nothing definitive. Checked previous owners and found nothing.
• 11/11/08 - Spoke with other mineral owner. Did not know the name.
• 12/3/08 - Called neighbors of subject property they knew nothing of him.
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST CLEBURNE COUNTY, ARKANSAS
Giva Lynda Gresham & Kathleen Riedel Gresham
• 10/29/08 - Sent lease covering this property and in other sections
• 11/16/08 - They are getting together at Christmas and will sign and get it back immediately.
• 12/6/08 - Spoke with Lynda, just checking in. She assured me they would get it back between Christmas and New Years.
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST CLEBURNE COUNTY, ARKANSAS
Sherman B. Chickering (life estate): remainderman: James Cary
• 9/24/08 – Agent was told that a Revised Lease form from landowners attorney would be forthcoming
• 10/6/08 - Agent requested revised lease form
• 10/20/08 – Agent received terms requested by landowner.
• 10/20/08 – Agent rejects landowner’s terms and informs landowners via their attorney that XTO would be integrating interest. Attorney was asked to advise whether XTO Agent should continue to contact him or deal directly with landowner. Agent received no response.
• 11/21/08- Did search for landowner contact information, found one working phone number, left message.
• 11/22/08 - Left message explaining reason for call. Got a return call, that I had the wrong number – they had never heard of the Cary’s.
• 11/24/08 – Agent sent letter with offer to the address of record.
• 12/1/08 - Spoke with James. He has had direct contact with XTO thru the family Attorney. He directed that I should contact XTO for specifics.
• 12/11/08 – Agent sent letter to landowners via attorney requesting decision on accepting XTO Lease offer.
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST
CLEBURNE COUNTY, ARKANSAS
Sherman B. Chickering (life estate): remainderman: John Cosden Cary
• 9/24/08 – Agent was told that a Revised Lease form from landowners attorney would be forthcoming
• 10/6/08 - Agent requested revised lease form
• 10/20/08 – Agent received terms requested by landowner.
• 10/20/08 – Agent rejects landowner’s terms and informs landowners via their attorney that XTO would be integrating interest. Attorney was asked to advise whether XTO Agent should continue to contact him or deal directly with landowner. Agent received no response.
• 11/21/08- Search for landowner contact info, found one working phone number, left message.
• 11/22/08 - Left message explaining reason for call. Got a return call, that I had the wrong number – they had never heard of the Cary’s.
• 11/24/08 – Agent sent letter with offer to the address of record.
• 12/1/08 - Spoke with John’s brother, James. He has had direct contact with XTO thru the family Attorney. He directed that I should contact XTO for specifics.
• 12/11/08 – Agent sent letter to landowners via attorney requesting decision on accepting XTO Lease offer.
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST
CLEBURNE COUNTY, ARKANSAS
Kent Krug and Karen A. Krug (Fayetteville Royalty, LLC)
• 12/13/08 – Spoke with Mr. Krug. He is willing to sign the lease if XTO will agree to some other negotiations.
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST CLEBURNE COUNTY, ARKANSAS
L. B. Moon
• 11/5/08 - Checked numerous public records for contact info. Found no information.
• 11/7/08 - Checked vital statistics sites. Found nothing definitive. Checked previous owners and found nothing.
• 11/11/08 - Spoke with other mineral owners. Did not recognize the name.
• 12/3/08 - Called neighbors of subject property – they did not know L. B. Moon.
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST
CLEBURNE COUNTY, ARKANSAS
Sherman B. Chickering (life estate): remainderman: Loren Cary August
• 9/24/08 – Agent was told that a Revised Lease form from landowners attorney would be forthcoming
• 10/6/08 - Agent requested revised lease form
• 10/20/08 – Agent received terms requested by landowner.
• 10/20/08 – Agent rejects landowner’s terms and informs landowners via their attorney that XTO would be integrating interest. Attorney was asked to advise whether XTO Agent should continue to contact him or deal directly with landowner. Agent received no response.
• 11/21/08- Search for landowner contact info, found one working phone number, left message.
• 11/22/08 - Left message explaining reason for call. Got a return call, that I had the wrong number – they had never heard of the Cary’s.
• 11/24/08 – Agent sent letter with offer to the address of record.
• 12/1/08 - Spoke with Loren’s brother, James. He has had direct contact with XTO thru the family Attorney. He directed that I should contact XTO for specifics.
• 12/11/08 – Agent sent letter to landowners via attorney requesting decision on accepting XTO Lease offer.
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST
CLEBURNE COUNTY, ARKANSAS
Paul E. Smith
• 11/5/08 - Checked numerous public records for contact info. Found no information.
• 11/7/08 - Sent lease package to address of record.
• 11/27/08 - Lease package returned as “Undeliverable”.
• 12/3/08 - Agent went to address. No one there..
• 12/10/08 - Spoke with ex-wife, they have mutual friends, she will contact them to see if they have an address or phone number for him. There is no work number.
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST
CLEBURNE COUNTY, ARKANSAS
Sanford D. Cothren and Barbara R. Cothren
• 11/5/08 - Checked numerous public records for contact info. Left message.
• 11/7/08 - Sent lease package to address of record.
• 11/19/08 - Left message.
• 12/3/08 - He doesn’t understand why he owns the minerals. I explained, he wants to have some time to think about it.
• 12/14/08 - He’s still not sure, but will sign the lease and get it back to us as soon as possible.
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST
CLEBURNE COUNTY, ARKANSAS
TEX/CON Oil & Gas Company Possible Successors to Title: EEX Operating, L.P. EEX Operating LLC Newfield Exploration Company
• 12/9/08 – Checked public records for contact info.
• 12/15/08 - Spoke with representative of TEX/CON and she will have the Exploration Manager call back
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST
CLEBURNE COUNTY, ARKANSAS
Walter Smith (a/k/a Walter L. Smith)
• 11/6/08 – Checked public records for contact info. Found number for relative.
• 11/6/08 - Sent lease package to address of record.
• 11/17/08 - Left message on relative’s phone.
• 12/1/08 - Left message.
• 12/9/08 - Field agent went to address, no answer at door.
• 12/14/08 - Left message
Resume of Efforts Section 20, Township 9 North, Range 10 West
Cleburne County, Arkansas XTO Energy Inc.
W. Bruton Thorning, a/k/a W. Burton Thorning, apparently deceased Apparent heirs: Margo Thorning, apparent heir of W. Bruton Thorning, a/k/a W. Burton Thorning, apparently deceased Mary L. Zill and Karl Zill, apparent heir of W. Bruton Thorning, a/k/a W. Burton Thorning, apparently deceased
• 11/17/2008-Searched for contact information.
• 11/24/2008-Called numerous “Thornings” in area of last known address.
• 12/02/2008-Searched various data basis for contact information. Trying to make contact with possible heirs.
• 12/08/2008-Landowner called me back and said they are interested in leasing and requested a lease packet.
• 12/09/2008-Heard from heir’s attorney - they are interested in leasing.
RESUME OF EFFORTS
SECTION 20, TOWNSHIP 9 NORTH, RANGE 10 WEST CLEBURNE COUNTY, ARKANSAS
The following parties are listed for Curative Purposes Only: The unknown Heirs and Assigns of F. A. Sansome The unknown Heirs and Assigns of Dolphus King The unknown Heirs and Assigns of Prediuth King The unknown Heirs and Assigns of L.B. Moon The unknown Heirs and Assigns of Ima T. Weatherson The unknown Heirs and Assigns of W. Bruton Thorning a/k/a W. Burton Thorning
EXHIBIT “C”Applicant’s statement regarding Operating Agreement
Docket Reference No. 021-2009-01
The applicant requests incorporation of the Model Form Joint Operating Agreement
approved by the Arkansas Oil and Gas Commission on October 24, 2006, with Paragraph
III.1.A.(1) of the COPAS providing for a drilling well rate of $7,500.00 and a producing
well rate of $750.00 , and with the following proposed revisions, deletions and/or
insertions, if applicable:
NONE
XTO ENERGY INC.AUTHORITY FOR EXPENDITURE
AFE DESC: D&C&EQUIP-HORIZ FAYETTEVILLE FIELD: B-43
DATE: 06/05/2008 107676ACCOUNTING ID:
AFE TYPE: WELL NAME:DEVELOPMENT DRILLING
OPERATOR: ARKANSAS / CLEBURNESTATE/COUNTY:81 - XTO ENERGY INC.SECTION/TOWNSHIP/RANGE: 20/9N/10W XTO WI DECIMAL: 0.999990000
AFE NO.: 803818 DISTRICT: ARKOMA
CLARK 01-20H
TOTALCOMPLETIONDRYHOLEDETAIL OF EXPENDITURES SUPPLEMENT
536,500.00Drilling/Rig Move 0.00 0.00 536,500.00
0.00Completion Unit 30,000.00 0.00 30,000.00
8,500.00Surf/Int Csg Crew/Laydown Service 0.00 0.00 8,500.00
235,000.00Directional Tools/Services 0.00 0.00 235,000.00
132,500.00Roads & Location 0.00 0.00 132,500.00
200,000.00Mud/Chemicals 0.00 0.00 200,000.00
45,000.00Well Logging: Open Hole 0.00 0.00 45,000.00
15,000.00Surf/Int Cement & Related Services 0.00 0.00 15,000.00
75,000.00Bits, Mills, Reamers 0.00 0.00 75,000.00
65,000.00Drlg Rentals: Sub-Surface 0.00 0.00 65,000.00
38,000.00Drlg Rentals: Surface 0.00 0.00 38,000.00
100,000.00Rig Fuel, Power & Water 0.00 0.00 100,000.00
0.00Cased Hole Logging/Perf 60,000.00 0.00 60,000.00
0.00Stimulation & Pumping Services 600,000.00 0.00 600,000.00
37,700.00Drilling Supervision 0.00 0.00 37,700.00
30,000.00Mud Logger 0.00 0.00 30,000.00
10,000.00Misc Supplies 0.00 0.00 10,000.00
3,500.00Commission/Legal 0.00 0.00 3,500.00
5,800.00Drilling Overhead 0.00 0.00 5,800.00
7,500.00Cost of Control Insurance 0.00 0.00 7,500.00
10,000.00Drlg Trucking & Hot Shot 0.00 0.00 10,000.00
0.00Completion Dress Location 10,000.00 0.00 10,000.00
75,000.00Fluid Haul/Solid Control 0.00 0.00 75,000.00
0.00Completion Services 50,000.00 0.00 50,000.00
0.00Flowback 20,000.00 0.00 20,000.00
0.00Frac Tanks/Fluid Hauling 100,000.00 0.00 100,000.00
0.00Prod Csg Cement & Related Service 40,000.00 0.00 40,000.00
0.00Prod Csg Crew/Laydown Service 17,500.00 0.00 17,500.00
0.00Cmpl Rentals: Sub-Surface 10,000.00 0.00 10,000.00
0.00Cmpl Rentals: Surface 20,000.00 0.00 20,000.00
0.00Cmpl Engr/Supervision 10,000.00 0.00 10,000.00
0.00Cmpl Overhead 2,500.00 0.00 2,500.00
0.00Cmpl Trucking & Hot Shot 5,000.00 0.00 5,000.00
0.00Intang. Cmpl Contingencies 10,000.00 0.00 10,000.00
0.00Cmpl Misc Labor 5,000.00 0.00 5,000.00
25,000.00Hammer Bits 0.00 0.00 25,000.00
8,500.00Air Hammer Rental 0.00 0.00 8,500.00
5,000.00Plug and Abandon Unsuccessful Well 0.00 0.00 5,000.00
8,000.00Misc Labor/Welding 0.00 0.00 8,000.00
Page 1 of 2
XTO ENERGY INC.AUTHORITY FOR EXPENDITURE
AFE DESC: D&C&EQUIP-HORIZ FAYETTEVILLE FIELD: B-43
DATE: 06/05/2008 107676ACCOUNTING ID:
AFE TYPE: WELL NAME:DEVELOPMENT DRILLING
OPERATOR: ARKANSAS / CLEBURNESTATE/COUNTY:81 - XTO ENERGY INC.SECTION/TOWNSHIP/RANGE: 20/9N/10W XTO WI DECIMAL: 0.999990000
AFE NO.: 803818 DISTRICT: ARKOMA
CLARK 01-20H
TOTALCOMPLETIONDRYHOLEDETAIL OF EXPENDITURES SUPPLEMENT
10,000.00Intang. Drlg Contingencies 0.00 0.00 10,000.00
1,686,500.00 990,000.00WIP-Intan. Devlpmt Costs TOTAL: 2,676,500.00
1,500.00Conductor Pipe / Caisson 0.00 0.00 1,500.00
0.00Tubing 20,000.00 0.00 20,000.00
9,500.00Wellhead Equipment 0.00 0.00 9,500.00
0.00Tank Batteries 45,000.00 0.00 45,000.00
0.00Lease & Flow Lines 15,000.00 0.00 15,000.00
21,000.00Surface Casing 0.00 0.00 21,000.00
0.00Production / Liner Casing 278,400.00 0.00 278,400.00
0.00Tubing Head / X-mas Tree 15,000.00 0.00 15,000.00
0.00Tang. Cmpl Contingency 10,000.00 0.00 10,000.00
10,000.00Tang. Drlg Contingency 0.00 0.00 10,000.00
42,000.00 383,400.00WIP-Lease & Well Equip. TOTAL: 425,400.00
1,728,500.00 1,373,400.00TOTAL THIS AFE:
*** This AFE is an estimate only. By returning one signed copy, you agree to pay your share of the actual costs incurred. ***
REMARKS: DRILL, COMPLETE & EQUIP 9,500' TMD; 5,180' TVD HORIZONTAL FAYETTEVILLE SHALE
PILOT HOLE 4,785' TVD; PROPOSED PRODUCTIVE LATERAL 4,214'
DAYRATE: 25 DAYS @ $18,500/DAY
SURFACE CASING: 9-5/8", J-55, 36#, 600', $35.00/FT
PRODUCTION CASING: 5-1/2", P-110, 17#, 9,500' @ $29.00/FT
TUBING: 2-3/8", J-55, 4.7#, 4,000' @ $4.25/FT
3,101,900.00
Signature: TITLE
BY
Approved By: Keith HuttonCOMPANY
Prepared By: DATESusan Garrett
Non Operator Approval
Page 2 of 2
161718
19 20 21
282930
- 3900 - 390
083-0083-
- 3700
- 37
63-
0063-
Cos den PetDanaphan 1
-3,79
0
SeecoCaldwell Foods 1-29H
XTOFous t 1-16H
-3,688
-3,5
40
-3,688
XTOClark 1-20H
XTO
XTODixon 1-28H
XTOGres ham 1-17H
XTOSlade 1-21H
XTOGraham-Bowen
FEET
0 3,000
PETRA 12/10/2008 10:15:24 AM
UPPER FAYETTEVILLE SHALE STRUCTURE MAP
Contour Interval: 100’
Geologist: S. FineganDate: Dec., 2008Exhibit ___
Clark #1-20H
Section 20 –
T9N R10WCleburne County,
Arkansas
Non-Exceptional Location in the SW1/4
SHL
PBHL
Unit Boundary
-3500
E
161718
19 20 21
282930002
002
Cos den PetDanaphan 1
SeecoCaldwell Foods 1-29H
XTOFous t 1-16H
202
237
XTOClark 1-20H
XTO
XTODixon 1-28H
XTOGres ham 1-17H
XTOSlade 1-21H
XTOGraham-Bowen
FEET
0 3,000
PETRA 12/10/2008 10:43:06 AM
Geologist: S. Finegan
FAYETTEVILLE SHALE ISOPACH MAP
Contour Interval: 50’
Exhibit ___
SHL
PBHL
Unit Boundary
T1XTO
Chalk 1-23H
400350300250200150100
500
Clark #1-20H
Section 20 –
T9N R10WCleburne County,
Arkansas
Non-Exceptional Location in the SW1/4
Date: Dec., 2008
250
F
161718
19 20 21
282930
Cos den PetDanaphan 1
SeecoCaldwell Foods 1-29H
XTOFous t 1-16H
XTOClark 1-20H
XTO
XTODixon 1-28H
XTOGres ham 1-17H
XTOSlade 1-21H
XTOGraham-Bowen
FEET
0 3,000
PETRA 12/10/2008 10:49:26 AM
Geologist: S. Finegan
Unit PlatSect 20 9N-10W
Exhibit ___
SHL
PBHL
Unit Boundary
Clark #1-20H
Section 20 –
T9N R10WCleburne County,
Arkansas
Non-Exceptional Location in the SW1/4
Date: Dec., 2008G