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1.
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26206
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Application of Powderhorn Operating, LLC for Compulsory Pooling, Eddy County, New
Mexico. Applicant seeks an order pooling all uncommitted interest within the Wolfcamp
formation, designated as a gas pool (Purple Sage Wolfcamp [Gas] Pool Code 98220),
underlying a 959.60-acre, more or less, standard horizontal well spacing unit comprised of the
E/2 of Section 3 and all of Section 2, located in Township 24 South, Range 26 East, NMPM,
Eddy County, New Mexico (the “Unit”). The Unit will be dedicated to the following wells: Super
Hornet State Com 401H, a gas well that will be horizontally drilled from a surface hole location
2550’ FEL & 1,380’ FNL of Section 3, to a bottom hole location 100’ FEL & 990’ FNL of Section
2, Township 24 South, Range 26 East; Super Hornet State Com 402H, a gas well that will be
horizontally drilled from a surface hole location 2550’ FEL & 1,410’ FNL of Section 3, to a bottom
hole location 100’ FEL & 2,330’ FNL of Section 2, Township 24 South, Range 26 East; Super
Hornet State Com 403H, a gas well that will be horizontally drilled from a surface hole location
2535’ FEL & 1,380’ FSL of Section 3, to a bottom hole location 100’ FEL & 1,650’ FSL of Section
2, Township 24 South, Range 26 East; Super Hornet State Com 404H, a gas well that will be
horizontally drilled from a surface hole location 2535’ FEL & 1,350’ FSL of Section 3, to a bottom
hole location 100’ FEL & 330’ FSL of Section 2, Township 24 South, Range 26 East. The wells
will be horizontally drilled and located within the Purple Sage Wolfcamp Gas Pool (Code 98220).
This pool is subject to special pool rules that establish 330-foot setback requirements, and the
Wells will have non-standard first and last take points. The completed interval of the Wells will
remain within 330 feet of the adjoining half-section tracts, allowing inclusion of these proximity
tracts within the proposed Unit under NMAC 19.15.16.15(B)(4). Also, to be considered will be
the cost of drilling and completing the Wells and the allocation of the cost, the designation of
Applicant as the operator of the Wells and Unit, and a 200% charge for the risk involved in
drilling and completing the Wells against any working interest owner who does not voluntarily
participate. The Wells are located approximately 8.9 miles south of Carlsbad, New Mexico.
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