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ENVERUS.COM | 1 The Oklahoma Spacing Sudoku Solver What if… What if one of the most complex regulatory requirements held some of the best clues to the evolvement of Oklahoma’s Oil and Gas Industry? August 19, 2020

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Page 1: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 1

The Oklahoma Spacing Sudoku Solver

What if… What if one of the most complex regulatory requirements held some of the best clues to the evolvement of Oklahoma’s Oil and Gas Industry?

August 19, 2020

Page 2: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 2 Copyright © 2020 Enverus

Oklahoma Spacing Regs are Complicated Quick Rewind…

– How’d We Get Here?

Page 3: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 3 Copyright © 2020 Enverus

Oklahoma Spacing Regs are Complicated – How’d We Get Here?

Quick history…

Cleveland Oil Field 1906 – Pawnee County – One Year Before Oklahoma Statehood.

Page 4: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 4 Copyright © 2020 Enverus

Oklahoma Spacing Regs are Complicated – How’d We Get Here?

Quick Rewind…

Site of Nellie Johnstone Well - Chelsea, OK – Rogers County – Cherokee Nation

Page 5: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 5 Copyright © 2020 Enverus

Oklahoma Spacing Regs are Complicated – How’d We Get Here?

Page 6: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 6 Copyright © 2020 Enverus

Oklahoma Spacing Regs are Complicated – How’d We Get Here?

Page 7: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 7 Copyright © 2020 Enverus

Page 8: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 8

Oklahoma Corporation Commission Order No. 6433. The first true Spacing Order. 1933.

• Prevention of Waste

• Prior to this OCC Order, 462 Wells had been drilled in this field with no Spacing

• As competition for new locations gathers momentum, Protection of Correlative rights quickly joined Prevention of Waste as one of the Prime Directives of these Regs

• Between these two initiatives the framework for todays Spacing Order was born. Don’t drill more wells than necessary and don’t drill too close to your neighbor

Copyright © 2020 Enverus

Page 9: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 9

Oklahoma Corporation Commission Order No. 6433.

The first true Spacing Order.

Copyright © 2020 Enverus

Page 10: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 10

Oklahoma Spacing Regs Development

• Document each zone’s legal origination

• Connect each unit in the same zone with the unit it is extended from

• Leverage the natural geological petroleum features in each Spacing Order, tracing each zone back its originating

• Connect all Spacing Orders of the same formation via language found in the Orders

Copyright © 2020 Enverus

Page 11: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 11

Oklahoma Spacing Reg Goals

• Follow Geology - Recognize the regional (or even larger) nature of a productive geological formation

• Protected Space - Give each well the protection afforded by an OCC Spacing Order (ie its very own 3D box to reside in for its entire life)

• Collect, Organize and Share Knowledge - Allow the State (and producers) to track it all back to the originating Order, thus following and documenting the development trail

Copyright © 2020 Enverus

Page 12: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 12 Copyright © 2020 Enverus

The Maturing of Spacing as We Know it Today

Page 13: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 13

Copyright © 2020 Enverus

In 1955 Amoco’s Oklahoma Reg Team Left Amoco to form OLR – It’s Mission: Document & Track All Spacing Units in All Dimensions and Over Time

Barth Walker

Jim Ramsey

Paul Peterson

Page 14: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 14

Copyright © 2020 Enverus

1884 – First Well Permitted by a Governmental Agency

1933 – Oklahoma’s First Spacing Order 1955 – Amoco Reg Affairs Team Forms Oil-Law Records

Page 15: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 15

Copyright © 2020 Enverus

Page 16: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 16

Solving the Web

Copyright © 2020 Enverus

It SeemsToo Big to Figure Out

Page 17: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 17

Copyright © 2020 Enverus

Page 18: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

Copyright © 2020 Enverus. All rights reserved. All brand names and trademarks are the properties of their respective companies.

Copyright © 2020 Enverus

Page 19: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 19

Copyright © 2020 Enverus

• OK Source Spacing with full Zone Histories and a Live Spacing Abstract

• Permits with Wellbore Trajectories

Page 20: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 20

Challenge. Solved. OK Source Spacing / Units

Copyright © 2020 Enverus

Page 21: The Oklahoma Spacing Sudoku Solverlp.hartenergy.com/rs/433-ODK-889/images/2.09 Brad...ENVERUS.COM | 21 Thanks! Brad McPherson Director, Oklahoma (405) 840-1631 ex. 216 brad.mcpherson@enverus.com

ENVERUS.COM | 21

Thanks!

Brad McPherson

Director, Oklahoma (405) 840-1631 ex. 216

[email protected]