1 Geological Survey and Production Data Research
Cutter Oil uses geological data, production data, and other information to identify viable areas for production with oil and gas reserves.
2 Lease and Title Search
Once a location has been identified, Cutter Oil acquires leases from all landowners required to compose a well unit. For wells less than 4000 feet, twenty (20) contiguous acres are required for the unit and forty (40) contiguous are required for wells more than 4000 feet. Title searches are performed on all landowners involved in the unit.
Cutter Oil then has surveyors inspect the property and stake the location of the well. ODNR requires that certain distances and measurements be taken for the well. These can be found here. A plot plan is created that includes the locations of the well, tank batteries, gas and production lines, and the driveway.
Cutter Oil applies for a drilling permit from ODNR. After an ODNR state inspector has checked the well location, the drilling permit is issued.
5 Preparing the Location
This step involves clearing land, preparing the drilling pad, and creating an access road to the location. This is a crucial step in the process, and great care must be taken because the goal is always to preserve as much of the natural environment as possible to allow for everything to be put back in its proper place after the drilling phase is complete.
A drilling rig and all related equipment are moved onto the well site. This equipment is setup and two drilling pits are dug and lined. These pits are used in the drilling process. Once all of the equipment has been set up, the drilling commences, takes approximately 7-10 days, and runs 24 per day until the well depth is reached. Once the drilling process has been completed, all equipment is moved out and the drill pits are covered and the land is reclaimed.
A smaller service rig and other equipment are then moved onto the location to perforate and fracture the well, which creates small holes in the casing of the well. This allows the oil and gas to flow into the casing. Once this process is completed the permanent equipment and structure are installed This equipment includes:
- Tank Battery
- Meter and Sales Line
- Gas Line to Landowner’s Residence
Gas Line Landscaping is also part of this process. The well location is put back into nearly its original condition along with the planting of trees around the well head and tank battery.
The well is now ready to be put into production. Gas will be sold through a meter and any oil that is produced will be picked up by a tanker as required. The landowner will also be able to receive natural gas at this time. Once the well is in production the landowner can expect a monthly disbursement of their share of landowner royalties.
A Cutter Oil service technician periodically checks the well for proper operation, logs production amounts, and inspects for any type of leaks.