Cross-Block Oil Migration Litigation Support
An oil pool had been divided into two licensed production areas; the claimant operated the north and the client operated the south. The south area had been more aggressively developed, and the claimant alleged that the client’s operations had resulted in oil migration from the north to the south and sought compensation. Independent expertise was required to resolve the dispute.
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Project Highlights
- 539 wells reviewed
- Acted as an advisor and expert witness on behalf of the defendant
- No damages awarded
- Provided geotechnical and production operations expertise
Challenges:
An oil pool had been divided into two licensed production areas; the claimant operated the north area and the client operated the south
The south area had been more aggressively developed, and the claimant alleged that the client’s operations had resulted in oil migration from the north to the south
The claimant was seeking compensation for this loss
The south area had been more aggressively developed, and the claimant alleged that the client’s operations had resulted in oil migration from the north to the south
The claimant was seeking compensation for this loss
Solutions:
Sproule ERCE developed a comprehensive understanding of the production history and oil flow in the pool by conducting an independent geological reservoir study, by reviewing drilling and production history, and by creating a 3D dynamic reservoir simulation model
Sproule ERCE offered an opinion on the production practices of the client and provided expert witness testimony
Sproule ERCE also reviewed and provided a counter opinion to the claimant’s expert witnesses
Sproule ERCE offered an opinion on the production practices of the client and provided expert witness testimony
Sproule ERCE also reviewed and provided a counter opinion to the claimant’s expert witnesses
Values:
In Sproule ERCE’s opinion, the defendant had used good production practices in their development of the pool
Sproule ERCE defended this opinion on behalf of the client in numerous legal proceedings, with the result that the client was not found liable for any damages
Sproule ERCE defended this opinion on behalf of the client in numerous legal proceedings, with the result that the client was not found liable for any damages