Six months of cash gone
This post is brought to you by one of our information partners, Proven Reserves Exploitation Ltd.
If your application is not approved, what will it cost you?
One operator's plans for a horizontal well water flood were put on hold. It was because he didn't understand the regulator's hot buttons in approving spacing applications.
The service he used to submit the application should have known better. Because of a tightening in regulatory policy, he had to reconsider how to get the spacing and flood he needed. Unfortunately, he lost six months revenue from the fiscal year because of this error.
To make things worse, he submitted a net pay map showing drilling locations off his land. He practically invited offsets to drain him. And his application service didn't warn him not to do it.
And now you can see his application documents and his mapping within moments by clicking on the button below labelled, 'Buy these application documents now.'
Buy these submission docs now Subscribers get them for freeFour 'Thou Shalt Nots' of applications
There were several errors that caused the hold-up. But you can learn from his mistakes.
They are not really commandments of stone, but if you don't pay attention to these, it will bring you lots of pain.
?subject=Audit my application&body=Will you audit my application before I submit it?%0D%0A %0D%0AMy Name:__________ %0D%0AMy Phone Number:__________ %0D%0AType of my application:____________%0D%0A%0D%0AI need to submit it by_________________ %0D%0A%0D%0A(Or call Proven Sales at 403-803-2500.)">Contact Proven to audit your application before you submit.
1. Don't hire a cheap service that doesn't care about mapping
That's what happened this time. The maps were generated by the operator and showed corner shot drilling opportunities on their pool. The application service didn't care, they just submitted those maps. And now you can see the drilling opportunities in the application.
If a service is willing to take your maps and submit them, they don't care about letting your secrets into the public domain.
Some services are cheap because only take your materials, put their name on it, and submit it. You create all the maps, write all the geological discussion, and come up with all the ideas. Since you are not paying them to create the materials, they don't take the time to review them for accuracy, consistency or fitness for purpose.
2. Don't hire a low quality service that will cut corners
It happened this time. The regulator had been requiring a certain piece of information for this type of application for months before this application was submitted. But the low quality service (which is one of the most popular in the industry) didn't care and didn't submit the required information. The application was stalled and the operator lost 6 months of cash flow.
This may sound obvious, but the application service you hire should get your application approved -- and quickly.
Would it surprise you that some of the most popular services get a lot of applications refused by the regulator?
You may ask yourself, why is that?
It's not because they submit the tough applications. We've read them. The toughest applications are submitted by operators.
It's because these poor application shops cut corners to charge low prices to keep the volume up. They use their boiler plates templates and do little thinking about how to get an application approved.
Slap it together. Slip it in. Forget about it.
In order to make a living at submitting applications for a very low price, they can't spend very much time on the application. They must slap it together and send it in with as little effort as possible.
Their cut corners leaves you exposed.
The only way to know for sure that a service cares about getting your application approved is by looking for a service with a guarantee.
?subject=Help me submit my application with guaranteed approval&body=Tell me about Proven's money back guarantee for approval.%0D%0A%0D%0AMy Name:__________ %0D%0AMy Phone Number:__________ %0D%0A%0D%0A(Or call Proven Sales at 403-803-2500.)">Contact Proven to submit your application with a money back guaranteed approval.
3. Don't just go by the guides
That's what happened this time. The regulator stalled this application because it didn't have a piece of information that they wanted, but that requirement wasn't in the guides.
Fifty percent of what you need to know to get an application approved isn't in the guides.
The service should have known about the extra requirement, but they didn't think about it.
4. Don't forget about your application
It happened this time, the operator and the service ignored the application after it was submitted. When the regulator finally came back with supplemental information requests, the operator wasn't ready and didn't know how to quickly resolve the concerns.
Once it's submitted, your application still needs work. On over 50% of applications, the regulator engages the submitter with additional information requests.
Many services submit applications but expect you to answer questions from the regulator. They will take your answer and submit it to the board under their name. If there are many rounds of SIRs, this can become quite tedious.
A good service is ready for the questions, knows how to resolve them quickly and knows how to help the regulator move forward with approval. We call it stick handling to the goal. And it comes only with lots of care and practice.
And one positive idea -- the Richter Scale
Some applications are harder to approve than others. We invented a Richter Scale to determine how difficult an application is to approve.
If you know an application is more difficult, you might take more care with it. You might look for additional helps for approval. You might prepare for supplemental information requests and a longer approval time.
If an application has a higher Richter Scale, it will shake more people up at the regulator.
Richter scale magnitude | Reaction at the Regulator | Conservation section contents |
---|---|---|
Less than 2.5 | Routine processing. No followup letter. Single analyst review. Supervisor approval. Application approval within current Regulator timeline. | Slight amount of conservation justification needed. |
2.5-4 | Supervisors review.Requests for more information from Analyst. Application may still be approved within current timeline. | Significant amount of conservation justification needed. |
4-6 | Application considered Non-Routine (longer processing time) | Significant amount of conservation justification needed. Geological elements to the justification required. |
6-8 | Manager review. Board or ADM approached. | Very significant amount of conservation justification needed. Many different types of justification required. Geological elements to the justification required. |
over 8 | Hearing likely. Application rejected offhand. | Very significant amount of conservation justification needed. Many different types of justification required. Geological elements to the justification required. All justification elements will be examined by experts. |
?subject=I want a cheap and cheery one day trial of AppIntel&body=Sign me up for a one day AppIntel trial so I can check out applications similar to my own. %0D%0A%0D%0AMy Name:___%0D%0AMy Phone Number:____%0D%0AType of applications:___%0D%0A%0D%0APricing: https://www1.appintel.info/short-term-search/%0D%0A%0D%0A(Or call AppIntel Sales at 403-803-2500.)">Contact us now for a one day trial.
Tags: AER application, Tight, Flood
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