North Dakota regulators extend the time oil producers can drill wells without completion

North Dakota's Department of Mineral Resources announced on Thursday that it has extended the policy for how long producers may leave unfinished wells after drilling. This is expected to assist drillers in dealing with low oil prices.

As U.S. crude oil prices dropped to $61 per barrel, the majority of companies have decided to delay completion and drop their rigs. This is because they are below the $65 average price that is required to make a profit. North Dakota producers must plug their wells after a year or put them into production to avoid abandonment.

Operators will be able to extend their current policy until the spring of 2027. They must also monitor the pressure in their wells on a quarterly basis.

Nathan Anderson, director of the Department of Mineral Resources, said that the Department is continuing to implement this waiver due to the soft price environment and the possibility of rig or activity level reductions. He said that the waiver was intended to help operators maintain healthy activity levels. The Department of Mineral Resources of North Dakota announced earlier this month that four to five operators plan to abandon rigs. Reporting by Arathy S. Somasekhar, Houston; Editing and proofreading by Anna Driver

(source: Reuters)