I recall reading that even dry holes drilled at or below 15K feet were included in royalty relief...obviously not for production, but because they could be used to offset production at other qualifying wells. If so...why stop W Cam 328 100 or so feet frm "paydirt"? Was it non-qualifying for some other reason?
Good question. The well may have been drilled in water that was more than 656 feet in depth(and hence not qualify for royalty relief) or, more likely, the well may have been plugged before the royalty relief was announced.
The new royalty relief program continues through 2010, and REM should be a prime beneficiary. I am wondering how many deep prospects (15,000+ feet) on existing shallow water leases will become economic to drill now that the federal government will effectively be paying about one-third the cost of the wells. I'm sure we will hear more about this on the next conference call.