The following outlines how Campbell develops and brings gas to market.
Prior to drilling, Campbell purchases intangibles, acquiring geological reports and leases for proposed sites which are not already controlled by Campbell.
Summary of drilling activities:
SITE PREPARATION
The site is prepared by leveling and trenching to satisfy safety regulations. The site may require preparation of a road.
RIGGING UP
This is the transport and preparation of the drilling rig.
SPUDDING-IN
Drilling a starter hole. After completion, a surface casing (lining) is installed to keep earth from crumbling into the well, preparing the well for safety devices. All wells are planned to be spudded no later than 90 days after the year-end of the investment, to ensure that Intangible Drilling Costs (IDC’s) may be taken as tax deductions for the year of investment.
WELL COMPLETION
When drilling reaches hydrocarbon-rich formations, production casing is installed and perforated, allowing gas to flow. The well is complete after the well head is installed. Pumps are added if pressure is needed to bring gas to the surface.
TYING IN
The well is brought into production by pipe connection to an outlet.
