Cheryl, So does that add up, you now have 5 wells ? I’m not greedy either, still waiting on that first check, then maybe 4 more wells…!
Could anyone help me understand a “final order of the commission” I received for sec 35 township 13 north range 9 west canadian county ? Over a year ago we received an interim order for increased density for 8 additional wells of which 4 have been drilled. Now this month we received a final order stating in the amendment that 4 additional wells have been drilled and at the time of this hearing April 30 2012 they requested 4 additional wells be permitted and relief is granted. The confusing part is at the end where it states devon having previously drilled the well within one year of the date of the interim order should be permitted to operate the well. We have differences of opinion here…some say this is just the final order for the completed wells and some say this is allowing devon to drill 4 more wells. Tried contacting devon. No answer. Tried the attorney. No answer. Thanks for any help…cheryl
Cheryl since you are in Candian County i would make a guess that the wells on your section are probably dry gas, if so have they cut back production some because of the low price for dry gas. If you do not mind what is the price of gas at the moment? I think you are lucky in being paid after 4 monhs, Michaels and my well in Grady were completed around the same time and i figure it will be Christmas before i see a payment from Continental.
Richard, we have the wet gas and get paid for NGL , condensate, RES-GAS, and GAS-MCF…i have no idea what the difference is in the 2 gases…I don’t pay attention to anything but the total check amount…however tomorrow is Devon’s payday and it will be for production for April ( always 2 months behind) and I will check the price of gas for April and let you know. I don’t think they have cut back production due to this being wet gas but we are all interested to see how much production has gone down just because it naturally declines over the months…Cheryl
Thanks Cheryl for the information, i am glad you have wet gas were you are at. When you check your receipt for the April Gas see what the BTU factor is on each one of the gases,also for all involved in this play it would be nice for all of us to report what our decline rates are for future well production rates.
The Woodford formation in my area is 330’, according to a
WOODFORD SHALE VOLUMETRICS report by XTO Energy. Can fracking cover an area as large as 330 feet?
Yes I see that 129 BCF unrecoverable. And they may be there. That is why I refrer to 20-30 years of production. That is when you know what the 640 will give up if it is drilled densley enough. The companies have to make some sort of claim because that is the way the regulations are set up state by state. Everyone one in the business knows it is a guess. The operator of the 640 just hopes it is right.
If they drill additional wells, would the crosssection look like this,
O O O O O or maybe something like this,
O O O
O O
Also, what are the spacing units in your area?
My wife owns mineral rights in Sec. 10-T14N-R7W of Canadian County. We are now receiving requests from landmen to lease these rights. We live in Austin and we’re investigating whether anyone else has mineral rights in this area and any other pertinent info. Thanks
The operators do not frac the whole verticle column. If they can they pick an area in the verticle volume that is more indicative of oil saturation than anything above and below the area. What area is fraced (fraced is the correct term, not fracked as some reporter who could not spell coined the phrase and it stuck) along the horizontal borehole is maybe 50 feet in a radius around the horizontal borehole. It could be more or less depending on the hardness of the shale at that particular point. They don’t intend to break up the whole verticle column since that would raise the risk of the frac process starting to contominate possible fresh water sands. They want a very controled process with no chance of the fracturing along with the chemicals to escape into other formations.
It has been a long time since I have been associated with the process but I don’t thik the rules have changed.
I’m not sure that any multiple boreholes in a 640 or 1280 have been drilled in Grady County. What I have seen is the possibility of 6 boreholes in a unit and I believe they will be evenly placed across the unit running generally north-south, canted somewhat westerly because of the strike of the Woodford shale. Whether they would have some higher or lower to each other, I don’t know.
Evenly spaced East-West across a unit is six wells would be a spacing of about 880 feet apart on the boreholes. Assuming the frac only went 50 feet in a radius from each borehole, that would leave undrained areas between each bore hole and could possibly have more bore holes between the six that were initially drilled in later years. Speculation I know, but physically possible.
Do you have a link to the XTO Energy report?
Here is the link
http://imaging.occeweb.com/IMAGING/OAP.ASPX?casenum=201203297&c…
Robert, If the minerals are recorded in your wife’s name and Canadian County has your correct address you should be receiving copies of some of the applications Newfield has made to the OCC. I don’t want to tell you a bunch of stuff you already know so please post any questions you have and I’m sure someone on the forum can help you.
Thanks-What XTO is claiming is 129 BCF (I don’t know whether they have combined to oil recover into gas or not) for a 640 unit. I had seen a number over a year ago claiming 200 BCF per 640. Those are mighty high numbers and may not prove out twenty or thirty years from now, but companies beat their chests about how much potential there is in a project.
The 3.9 BCF per well is probably pretty close. I used 4 BCF per well in my own calculations on my small interest in Grady. Given at this time operators are considering six wells per 640 that would only drain 24 BCF of the gas in place. There would be a remainder left in the unfraced portions of the 640 between bore holes. More advanced technology as the industy develops it would put some of the remaining gas to be produced later on.
You see they are claiming 125 BCF of unrecoverable.
Robert, Looks like you are in a very good spot. Newfield plans to drill a multi-unit horizontal well in sec. 3 & 10-14N/7W. My research was quick but for right now I would say don’t take any less than $1200-3/16, you can probably get more. Here is a link to Newfields application. If you want I can do some more research tonight. Don’t rush into anything you’ve got time, this is a big project and they have a lot of applications before the OCC.
Thanks Michael, we’re trying to educate ourselves to the opportunity.
Richard Pruitt, I finally got the statement from devon for the month of April. The BTU varied by wells and of course so did the price of the gas. BTU’S of 1.31 to 1.417. Gas prices for April from 2.552 to 2.767. But the money maker was the condensate at 100.23 which was down from last month…but the check overall was 1/3 more than the first check which was for February production…The check I got last month was for 3 months production( dec,jan,mar) on 6 wells. . I am not good with figures and that is why I just look at the check amount. And thank my late granddad every day for this little windfall. Cheryl
Robert-If you took that working interest, and I do not recommend small mainera ownersl taking the working interest in a well, no matter how small, you would start receiving your share of the daily sales of the well for the start. However, there are many other costs you will have to pony up for 9hook up charges, tank batteries, pipeline buiding charges to new a very few,. The mose infuriating one would be the “overhead” charged to the well. There is no way in a blue moon that you could find out an enumeration of these charges and your objecting to them, and you would, would delay monthly payments to your account.
Take the lease, it is all profit at that point.
Cheryl thankyou for the figures. It would be interesting if someone in your area had Continental as a operator and we could compare payment prices. We have a very small percent on a well in Okla. County been producing since 1991 and the gas prices for April had fallen to $2 for a BTU of 141. I can not wait till we receive a payment of our well in Grady County, which will probably be around Thanksgiving. I wish Continental would start driling the increase in density wells but they are concentrating very heavily on drilling the lease acreage before leases expire. I thank God everyday for the blessing of a well on royalities left bye my Granddad. Our proceeds will be used on medical bills as my wife has just started battling breast cancer.