In a recent government meeting, experts discussed the economic feasibility and operational challenges associated with the Black Hair Wells, specifically the 67 and 7H wells. The meeting highlighted the estimated plugging and abandonment (P&A) costs, set at $75,000 per well, which aligns with industry standards in the Uinta Basin.

The discussion included a review of exhibits that illustrated existing horizontal well developments in the area, revealing that two of the Black Hair wells are situated in a formation that had not been previously developed. This situation presents both opportunities and risks, as one well is being tested in a formation typically avoided by operators.

Geological risks were a significant focus, with experts noting challenges related to geosteering due to complex fault lines and variable stratigraphy, which can lead to stability issues during drilling. Specific incidents were cited, including casing failures and cementing challenges that have previously resulted in reduced production capabilities.

The meeting also addressed the commercial risks tied to fluctuating oil prices and logistical constraints affecting product sales. Notably, the Black Hair 7H well experienced a casing collapse approximately 3,000 feet from the well's heel, limiting its production potential. Despite this, experts indicated that the well may still contribute beyond the collapsed section, although this remains unconfirmed.

The board members engaged in a thorough inquiry regarding the implications of these risks and the justification for a proposed 300% risk assessment award, which was affirmed by the experts present. The meeting concluded with a commitment to further investigate the causes of casing failures and to develop strategies to mitigate such risks in future operations.