Has anybody recently received an offer to lease in this area? I received a phone call today regarding my small minerals in this area. Offer seemed decent but I don't know if this area is starting to heat up. Lease amount offered was between $550-$700 an acre. 3/16 3 yr.
27 and 22 were pooled at $1300 3/16 or $500 1/5 or $650 and 1/4 in 2014. Your acreage is two miles away, so should be slightly less. First offers are usually low. Try to get higher and at least 1/5th or 1/4.
I just leased 25-7N-4W to Prairie Oil & Gas for $2000/acre and 3/16 royalty
I just saw production on 25 was 52 barrels a day and 50,000 cu ft a day.
OMG thats horrible. I think the original vertical well from 1986 had a better test date amount than that. Finally its been reported on the OCC site. Anyhow at least its doing better than that. About 13,000 barrels a month.
Question for some of our forum experts or “old hands” in oil industry: Just wondering if there’s any advantage to oil company to report low production rate on completion report? It seems suspicious to me that it took so long to publish the report.
So in the paper it said 52, and it’s now actually 433. That is a pretty big difference! It was in the paper just a couple days ago at 52.
From a previous post I made on test reports.
Production is what people usually want it for. However, I don’t find the production test data to be of much use to determine what the well is going to produce. The test is completed to satisfy state statute requirements. I have not found it to be indicative of how good the well is. The OCC uses the test results to determine is the well is classified as an “gas” well or “oil” well. (over or under a 15,000:1 ratio). The wells fall under different oversight rules. There are so many variables and changes that occur in the first several weeks. A more accurate test might be a few months later after the production engineers have “tuned” the well and all of the frac water has returned. Let me see if I can find some notes from 4-5 years back. In reply to a similar question, I looked at some test vs production data on a sample of wells and you will see what I mean.
This was a reply from 4 years ago. __________________\
On the test data. Don’t be surprised when the test date is not that relevant to production numbers. The method of stimulation will greatly change the way the well develops. If the well is hydraulically fractured, water from the process will be flowing back for weeks. This will greatly impact the numbers. I’m watching the daily reports on one well right now and it makes it even more apparent of how misleading the test reports are. Not intentional, they are required to test and submit it to the OCC. As far as I know one of the primary reasons for testing is an OCC requirement to classify the well as an oil or gas well. This is done by the ratio of gas vs oil. Looking at some production numbers I have been compiling, here are some samples. (oil only, first month discarded) Test , months of production reported, overall sales average, average sales first 5 months 85, 9, 185, 263 365, 7, 388, 452 39, 7, 45, 53 268, 4, 130 125, 3, 35 69, 17, 143, 175 392, 6, 41, 35 81, 19, 22, 29 248, 10, 54, 95 69, 9, 36, 47 1059, 6, 514, 524 528, 15, 376, 523