Out-Of-State Drillers Turning Up Heat In Kansas

By: Associated Press
By: Associated Press

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Saturday, October 27, 2012

Traditional oil drillers in Kansas say an influx of out-of-state vertical drillers is pushing up land-lease costs and could cause hundreds of the state's wells to be idled within the next few years.

Oklahoma City-based Sandridge Energy moved its horizontal drilling operations into the state two years ago when it bought more than 2 million acres of mineral leases in Oklahoma and Kansas.

The Wichita Eagle reports the company has filed intent-to-drill notices for more than 60 horizontal wells in Ford, Finney, Gray, Ness, Hodgeman and Gove counties in western Kansas.

Cecil O'Brate, who owns American Warrior Energy in Garden City, says leases for many vertical drillers like him expire soon and some won't be able to renew because land-lease prices have shot up 10-fold or more.

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