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We  need information cocerning the fair market value of oil and gas lease in fayette county tx.  Many  people in this area are quick to sign their land for $200.00 per acre for 3 years with the leaser having the option to continue the lease for another $200.00 for the next 2 years.  We're asking is this a fair market value and is the length of time (5 yrs) is too long to tie up the  land.  A .187 royality is also being offered should there be any drilling.  We were told by our family lawyer to hold off as the activity in Fayette county will pick up alot during the next 5 years. We are located in Schulenburg,Tx.

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Only survey filed with Tx RRC is for the vertical well (TD 15,400'). Let's EOG know exactly where wellbore is as they set up for lateral drilling.

Betting they took a lot of core plus ran some pretty hi tech log suites here. 


Any updates or rumors on the EOG Tonkawa well?

Rig is gone and all that shows from the side road is a small two tank production battery.  No flare.

The adjoining land owner says all he's heard is they made a gas well and he thinks are working on a pipeline connection. It looks like Kinder Morgan has a gas line nearby but there could be a reason they can't tie-in there.  Someone with access to DI might be able to confirm if it's been fracked but expect it will be a long time before EOG files a completion report.    

EOG (or any stealth operator) has yet to file anything on FracFocus.org site as to stimulation details. Agree it will be a LONG time before EOG files anything with the state on this.

New directional survey covering the lateral hasn't been filed either.

Would DI usually show if it has been fracked?

Here's what it looks like now

There is a 10" Phillips 66 gas line in the same ROW as the Kinder Morgan products line - located about 2400' due north of the surface location for Tonkowa (but it will take longer trenching to get to this line depending on where tap is and how line needs to work around the creek in this area).

Photo looks like a typical EOG location (including color of equipment). Dual 400 bbls tanks (one of water and one for condensate?). Looks like a dehydrator unit and possibly a separator to the left of the tanks. Plus tower for info transmission / safety monitoring.

Small on site tankage would tend to point to some pretty dry gas (or gas and associated NGL's going via pipeline to processing plant). Regardless, not a lot of liquids being separated and stored on location.

I figure well is up and flowing gas to sales as I look at this. Or it will be flowing to sales soon.

Drilling Info shows nothing - latest info is the original May 2017 filing after the vertical well was at TD of 15,400'. Directional survey for vertical well is only info on Tx RRC site.

DI will not indicate if well has been frac'd - this is only included in DI if the frac info is including in any filed completion report.

Thanks Rock Man.  No signs of any pipeline work when I was through there last weekend although RRC's map shows those existing lines running close to the side road I took that picture from. 

RRC shows that 10" Phillips line being propane (NGL) and Kinder Morgan's being a 24" natural gas line that is part of their Hill Country (Rancho) system.  Maybe it's a trunk line that EOG can't access directly?

I liked hearing your thoughts on what EOG's production setup indicates about the Tonwoka.  What do you think about Geosouthern and Wildhorse always installing big tank batteries, at least five large crude tanks, on every new AC well they've completed in Washington County but then reporting little or no liquids production from several of them?  They aren't in EOG's class as operators but I can't understand them building those big setups before they know what the well can do.  They're both projecting to drill multiple wells from some of those locations so maybe what they've installed was designed for their ultimate combined flow?  Appreciate hearing if you have other ideas.        

As to tanks on location issue, thinking that EOG is making very little liquids via the separator and is taking gas (and associated NGL's) to processing plant.

Geosouthern and Wildhorse may be having more liquids produced on location that need storage than what EOG is seeing (note that EOG is much deeper and probably more gassy and less liquid rich than both Geosouthern and Wildhorse).

Geosouthern and Wildhorse could also be setting up tankage for other wells - tanks are relatively inexpensive and can easily be moved off original pad to other locations.

Also, part of the larger tank batteries could be tied to need for more water storage.

Appreciate your ideas.  I'm sure you are right about some rich gas being processed downstream. Still amazed though by wells like Geosouthern's Winkelmann where the completion report showed 17.4 MMCF/D of gas but just a blank space where they were supposed to report crude or condensate volume after they had rushed to install five big crude tanks plus additional water tanks and separators there. 

I thought GS must be keeping the true numbers under cover but for the first three months they've reported gas averaging 13-14 million/day to RRC for that well but still showed a blank space every month for any liquids.   

Winkelmann completion report showing 0.637 gas gravity for both mixture and "dry" gas - since actual dry (no liquids / NGL's) gas is around 0.59 gravity, there is some liquid associated with this gas stream.

Tx RRC report on production shows a "2: disposition code - so gas is going to gas pipeline and not a processing plant (code 3). Gas line may be taking the full well stream of gas (let's assume a 1050 Btu value) and giving GS a percentage increase in gas price for higher Btu.

I cannot comment on why GS put so much tankage on location - but tanks can be removed and taken elsewhere. Figure that there may be some condensate in those tanks (is there a separator on location?) but not enough to call in trucks to transport out loads as of yet.

Energy Transfer taking all the gas as per Tx RRC filings. Shell Trading listed as gatherer for liquids from wellsite.

Was hoping to find a gas analysis on Tx RRC but nothing posted.

Appreciate those details.  I'd been wondering about gravity of dry gas and didn't realize the distinction on disposition codes. Also hadn't thought about the fact a little condensate might be sitting in those tanks. Thanks


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