From Newfield’s Quarterly report:
Cana Woodford – Newfield’s drilling efforts have shifted from the Arkoma Woodford to the oil and “liquids rich” Cana Woodford, located in the Anadarko Basin. The Company assembled a 125,000 net-acre lease position as a southeast extension of this play in 2011. The Company plans to operate up to seven rigs in 2012 to assess this new acreage.
Read more here: http://www.sacbee.com/2012/02/21/4280687/newfield-provides-2011-fourth.html#storylink=cpy
I received my first notice of payment from Continental Resources tonight. It shows Gas and Condensate in the product codes but no oil product code in the payment. Does anyone know if Continental pays oil revenue by a separate check?
Larry, I would think it will come in separate checks. Usually whoever they sell the gas and oil to will send you a check. Larry, they finally reported the completion of your well in the Daily Oklahoman this morning.
Same check. Oil and condensate are collected the same way in a tank and trucked out usually. I have checks from several of these operators (Devon, Cimarex, QEP, etc.), and they are all similar. It’s all one check.
On leases with smaller operators, you often see separate purchasers for gas versus condensate/oil, and then there would be two checks.
Larry, I think the condensate is the oil. They should be paying you for the natural gas liquids (NGLs) also.
Are oil and gas usually separated at the wellhead? If it all goes downline, how is the oil company accountable for the oil and gas separation?
What is the difference between oil and condensate? On my check it looks like the price for condensate is about the same price as oil.
Looks like Canadian County is still pretty hot. Devon has applied for eight Location Exceptions in 25-13N/10W.
Gary aren’t you up that way somewhere?
Gail, oil and condensate are basically the same. Condensate is sometimes used for light oil where crude is used to describe the heavier, thicker oil.
On Continental’s Record of Sale it shows 4 product codes. 1xx for oil, 2xx for Gas (MCF), 3xx for Condensate, and 4xx for Plant products. On my statement it lists sales from Product Code 200, 203 and 300 but no 100 sales. That is what makes it confusing. Why have a product code for oil? Maybe for wells that do not have Condensate?
Gail, yes the oil and gas are separated at the wellhead. The oil or condensate are stored at the well site in the tanks and hauled off in trucks, usually about 180 bbl at a time. The oil usually eventually goes to Cushing, Oklahoma and then from there to a refinery. The gas and natural gas liquids (NGLs) are put in a pipeline and sent to a processing plant where the NGLs are separated out and sold separately. The gas is then sent to someone like ONG that then sells it to the homeowner.
Hey Richard, Maybe Gary answered your question about the green tank. Condensate maybe?
About 6 miles east of there just south of Calumet.
Some interesting information to go along with what Gary posted yesterday:
NGLs are liquids derived from the processing of natural gas that can replace oil in certain applications. In industry terminology, they are called C2, C3, C4, and C5, which stand for Ethane, Propane, Butane, and Condensate, respectively. (C1 is regular dry gas, or methane).
I found a map from Cimarex listing what they consider the “core” of Canadian County. Most of the sections in these Townships and Ranges are core sections: 14N-10W, 14N-9W, 13N-10W, 13N-9W, 13N-8W, 12N-10W, 12N-11W.
We had 3 tanks when I was last there. Price on one gas went from 4.42 in June to 3.83 in November. Other gas went from 5.17 in June to 4.49 in December. Not sure about the green tank.
Cheryl, I got my first payment from Cont. Res. and got paid for two gases. One payment was a lot better than the other gas. Not sure of the difference but they have it separated out each month. Larry
Thanks for that info on the core of Canadian County. I have also learned a lot about what is coming out of our well from discussions here. I just noticed that in January check it now lists gas - mcf and res-gas. What is the difference between these two? Been getting a check for almost 2 years now and this is the first time for a listing for the two different gases. Thanks
Larry, while I wait for our well to be fracked in Grady County, had right-of-way issues, I have a question or two. How many storage tanks are on your site? I have four, and one of them is green. Just wondering what it is for? If you do not mind, since the price of gas is supposed to be low, what type of price are you receiving for both of your gases?
The green tank may be wastewater that has been recovered.