BEFORE THE CORPORATION COMMISSION OF THE STATE OF OKLAHOMA APPLICANT: CONTINENTAL RESOURCES, INC. CAUSE CD NO. RELIEF SOUGHT: MULTIUNIT HORIZONTAL WELL 201601055 LANDS COVERED: SECTIONS 33 AND 28, TOWNSHIP 15 NORTH, RANGE 14 WEST, CUSTER COUNTY, OKLAHOMA ORDER NO. 670823 This cause came on for hearing before Michael Decker, Administrative Law Judge for the Corporation Commission of Oklahoma, on March 28, 2016; Paul Porter, Administrative Law Judge, on April 12, 2017; and Michael Porter, Administrative Law Judge, on May 22, 2017, in the Commission Courtroom, Jim Thorpe Building, Oklahoma City, Oklahoma, pursuant to notice given as required by law and the Rules of the Commission, for the purpose of hearing, taking testimony and reporting findings and recommendations to the Commission. David E. Pepper and Jessica Hatcher, Attorneys, appeared for the Applicant, Continental Resources, Inc. The Administrative Law Judge heard the cause and filed a report with the Commission, which report has been considered, and the Commission therefore finds as follows: FINDINGS 1. At the time of the hearing on March 28, 2016, the Virgilian, Missourian, Des Moinesian, Atoka, Morrow and Springer common sources of supply were dismissed. On May 22, 2017, the Hunton common source of supply was dismissed, and the Application was further amended as reflected below. 2. Applicant, as operator, has drilled a multiunit horizontal well in the lands involved herein in the Shale Reservoir covered hereby, with a portion of the completion interval of such multiunit horizontal well located in one or more of the 640-acre drilling and spacing units formed for the separate common sources of supply in said Section 33 and Section 28. Applicant has drilled the multiunit horizontal well at the following location: Surface location: 228 feet from the south line and 235 feet from the west line of Section 33-15N-14W, Custer County, Oklahoma;
PAGE NO. 2 Section 33-15N-14W: First Perforation into the Mississippian: Last Perforation into the Mississippian: First Perforation into the Woodford: Last Perforation into the Woodford: First Perforation into the Mississippian: Last Perforation into the Mississippian: First Perforation into the Woodford: 720 feet from the south line and 392 feet from the Oklahoma, with a true vertical depth of 14,455 feet and a measured depth of 14,703 feet; 1,303 feet from the south line and 411 feet from the Oklahoma, with a true vertical depth of 14,470 feet and a measured depth of 15,287 feet; 1,303 feet from the south line and 411 feet from the Oklahoma, with a true vertical depth of 14,470 feet and a measured depth of 15,287 feet; 1,733 feet from the north line and 396 feet from the Oklahoma, with a true vertical depth of 14,324 feet and a measured depth of 17,553 feet; 1,733 feet from the north line and 396 feet from the Oklahoma, with a true vertical depth of 14,324 feet and a measured depth of 17,553 feet; 1,504 feet from the north line and 394 feet from the Oklahoma, with a true vertical depth of 14,314 feet and a measured depth of 17,783 feet; 1,504 feet from the north line and 394 feet from the Oklahoma, with a true vertical depth of 14,314 feet and a measured depth of 17,783 feet;
PAGE NO. 3 Last Perforation into the Woodford: First Perforation in to Mississippian: Last Perforation into the Mississippian: First Perforation into the Woodford: Last Perforation into the Woodford: 810 feet from the north line and 387 feet from the Oklahoma, with a true vertical depth of 14,271 feet and a measured depth of 18,478 feet; 810 feet from the north line and 387 feet from the Oklahoma, with a true vertical depth of 14,271 feet and a measured depth of 18,478 feet; 429 feet from the north line and 384 feet from the Oklahoma, with a true vertical depth of 14,257 feet and a measured depth of 18,859 feet; 429 feet from the north line and 384 feet from the Oklahoma, with a true vertical depth of 14,257 feet and a measured depth of 18,859 feet; 0 feet from the north line and 384 feet from the west line of Section 28-15N-14W, Custer County, Oklahoma, with a true vertical depth of 14,243 feet and a measured depth of 19,289 feet; Section 28-15N-14W: First Perforation into the Woodford: Last Perforation into the Woodford: 0 feet from the south line and 384 feet from the west line of Section 28-15N-14W, Custer County, Oklahoma, with a true vertical depth of 14,243 feet and a measured depth of 19,289 feet; 2,421 feet from the north line and 402 feet from the west line of Section 28-15N-14W, Custer County, Oklahoma, with a true vertical depth of 14,130 feet and a measured depth of 22,158 feet; Applicant has completed the multiunit horizontal well and intends to produce hydrocarbons from the separate common sources of supply. Applicant has run casing in the horizontal portion, or lateral, of the borehole and cemented such casing so as to cover and isolate the first and last perforations in
PAGE NO. 4 the horizontal portion, or lateral. Applicant has drilled the multiunit horizontal well to a total measured depth of 22,231 feet with a completion interval of 7,455 feet. The multiunit horizontal well is necessary in order to prevent waste and to protect the correlative rights of the owners of oil and gas rights in the units. 3. The Commission has jurisdiction over the subject matter herein: area; (a) Notice was given to all parties entitled to share in production from the subject (b) receive mailings; A diligent inquiry was made by Applicant to locate those parties who did not (c) An examination of all available sources was conducted to determine the appropriate address of each party; Commission. (d) Notice was given in all respects as required by law under the Rules of the 4. Applicant owns an oil and gas interest in the area covered by the application, which entitles Applicant to drill for and produce oil and gas from the lands covered by the application. 5. By Order No. 655465, this Commission established 640-acre drilling and spacing units in Section 33-15N-14W for the Mississippian and Woodford common sources of supply. 6. By Order No. 651369, this Commission established 640-acre drilling and spacing units in Section 28-15N-14W for the Mississippian and Woodford common sources of supply. 7. The Woodford common source of supply in the lands covered hereby is a shale formation. The top of the Woodford common source of supply is found at a measured depth of 15,287 feet with a true vertical depth of 14,570 feet. No other tops were encountered with the ability to be measured. 8. The Applicant presented the following evidence: a. The surface location and the vertical portion of the well were selected based on geological and geophysical and engineering analysis which indicated that the proposed location for the vertical portion of the well should not encounter any over-pressured reservoirs which would impair the drilling of the vertical portion.
PAGE NO. 5 b. Faulting, if found, could impair the drilling of the horizontal portion of the wellbore. The geological and geophysical analysis of the sections did not indicate any such faulting. c. The proposed wellbore would prevent waste by allowing additional reservoir to be fracture stimulated and produced, which said gas would not be otherwise recovered by conventional wells. d. The proposed operation would reduce environmental issues by having only one surface location, lease road, and one area to be utilized for pipelines and tanks. e. The proposed operation would reduce costs by allowing the drilling of one wellbore at a lesser expense as compared to the cost of two wellbores. f. Evidence was presented that 61.5097% of the completion interval is located in Section 33-1N-5W and 38.4903% is located in Section 28-1N-5W, both of which are in Stephens County, Oklahoma, with the cost of and production and proceeds allocated between the affected units based on such percentages. 9. Applicant has drilled the well, is evaluating the production and will make decisions regarding further multiunit horizontal wells in these two units. 10. This Order supersedes Emergency Order No. 651908, which issued April 19, 2016, and Interim Order No. 657655, which issued on November 7, 2016. 11. In the interest of securing the greatest ultimate recovery from the reservoir or the prevention of waste and the protection of correlative rights, the Application should be granted as set forth herein.
PAGE NO. 6 ORDER IT IS THEREFORE ORDERED by the Corporation Commission of Oklahoma as follows: The requested relief set forth hereinabove is granted. A multiunit horizontal well is approved in the 640-acre drilling and spacing units formed for the Shale Reservoir described hereinabove in Sections 33 and 28-15N-14W, Stephens County, Oklahoma, at the location and distances as set forth hereinabove. CORPORATION COM ISSION OF OKLAHOMA DANA L. MURPHY, Chairman 4ift J. TODD HIETT, Vice Chairman 14AA-&" BOB ANTHONY, Commissioner DONE AND PERFORMED this day of, 2017. BY WE*. OF THE COMMISSION: At. PEGGY I T, Commission Secretary
PAGE NO. 7 REPORT OF THE ADMINISTRATIVE LAW JUDGE The foregoing findings and order are the report and recommendations of the Administrative Law Judge. Approved: Administrative Law Judge Date Technical Reviewer 1.D2 APPROVED AS TO FORM A CONTENT: Da id E. Pepper Jessica D. Hatcher
2816 o/05-5 )k CROrIPPt.al Well Location P/at Operator : CONTINENTAL RESOURCES, INC. EXHIBIT "A" S.H.L. Sec. 33-15N-14W 1M B.H.L. Sec. 2B-15N-14W 1.M. CUSTER COUNTY LEASE NAME HAMAR 1R-33-28XH 15N-14W SHL 228' FSL 235 FAX. PAD ELEV. 1730' LATITUDE LONGITUDE EASTING NORTHING BHL LATITUDE LONGITUDE EASTING NORTHING DESIGN ELEV 35'4333.22"N 98'42'27 2334.4 3514515.131N 58'4205 588.44 25'43 33 42,444 95'42'38 5824. '1134583 35,0 15 32 N ;8'4207 28 24, '73152' 275255 NiA 25 72555411-58 702023E2 2550'0 30 75420178.58 70'58'20 733193 2753,5 35 7259443/ -98 70238265 35 75425009-58 75252144 64 IA/ NE O OW 1320 150157 1' = 1320' GPS DATUM NAD - 27 NAD - 83 OK NORTH ZONE HEEL SLOT: 708'FSL -3.30'FAR. LAT 35'43'37 97-Al LOA 98'1206 1411/ LAT 35'4338 15-N LOA' 98'420741W LAT' 35 72721166 LOA -98 70170677 LAT 3.5 72726346 LOA -99 7020660-; X 1791715 Y 265165 X: 1760115 r 265199 X 1/96E90 Y 2E7394 X 17E5089 Y 267420 rv SW SE SURFACE HOLE LOC.:I 228FSL - 235. PWL I TUN- R14W 2643. TMA/- /7/41 2643. survey and plat by, Arkoma Surveying and Mapping, PLLC P.O. Box 238 Wilburton, OK 74578 Ph. 918-465-5711 Fax 918-465-5030 Certrficate of Authonzation No. 5348 Expires June 30, 2016 Invoice #6040-A Date StaRed : 05/26/16 Date Drawn : 05/31/16 By : C.K. By : J.H. Certification: This is to certify that this Well Location Plat represents the results of a survey made on the ground performed under the supervision of the undersigned. LANCE G. MATHIS ogge5 05/31/16 CD# 201 OK LPLS 1664