Robert, my wife apparently only has a leasehold interest on a very small portion, .075 of an acre. It’s in Sec 10-14N-7W Canadian County. They are going to pool 640 acres and so our working interest would only be .000117%. That sounds like one ten thousandth of a percentage. If we choose to participate in the well we’d invest $1300 of the $11m project. Would this mean that the profits from the project would have to reach 13m before we would make our investment back? It sounds like quite a long shot.
Steved, in 16N/10W there is some activity in sections 15,16,21 & 22. In 29-18N/6W there are several verticle wells, the most recent completed in April 2011 by Chaparral Energy
Steved, there is some good horizontal Woodford activity in your area (which is east of Watonga). The Petty 1-17H in 17-16N-10W is the most important. It was a great well, coming in at 373 bl/day and 5686 MCF/d. This is immediately adjacent to your section to the Southeast. Also, there is a very historic well with a 2 mile lateral - Continental’s Toms 1-21XH in 16N-10W. There is no official completion report yet, but it was spudded late last year.
There’s also a well farther away in 16N-10W, the Fry 1H-34.
There is no intent to drill on your section, but just be patient. There were dozens of oil and gas leases signed on your section 7 in the year 2010.
Our family has mineral rights on 80 acres in Blaine County, Section 7-16N - 10W, as well as some in Kingfisher County, Section 29 -18N- 6W. Is anyone aware of any existing or planned activity in these areas?
Something to think about. http://www.huffingtonpost.com/raymond-j-learsy/harvards-amazing-stu…
Don Thank you again. Also I guess choke size and pressure are things we need to know when we are trying to get information on production. If we post it if we can get it might be of help.
Ron-Usually the operators have information concerning the formation that is evaluated by engineers to determine an optimum production rate. Subsurface pressure is all important and a higher pressure well can be produced at a greater rate than a lower pressured well.
Your example of the two wells with the same output had one well on the 64/64 (I inch diameter I believe) as wide open as they could get it. The other well at a 22/64 was only open about a third as much and produced as much as the other well. The 22/64 was the higher pressure well. The one that was tested with a 64/64 choke will probably be cut back to considerably less that the rate shown to preserve formation pressue and the life of the well.
These are items that are monitored 24/7 365 days a year and changed as needed (i.e. choke size) to maintain subsurface reservoir pressure. Wells that are produced too fast (choke open too wide) for the reservoir integery will damage the reservoir and prevent the operator from getting all the product he can from the reservoir. He may have to undertake an expensive repair job on the well to get the rest of the product out.
Don Thank you for you help. If you get some time and could look at the the webpage in my post of 8 hr. ago I would like to know what you thought if you get the time.
Don, You da Man!
You have to look pretty close to see choke size with production figures. Usually they are not there or are left off. However, there is a sort of misleading number usually published with a well’s initial porduction test. Most operators want the wells numbers to look impressive as possible. The industry has been living with the mentality of the “biggest kid on the block” for a long time. So, when you see your well’s test come in with some big numbers and you get your first check and those big numbers are not reflected in the $$$ you got, guess what, they choked it back. It almost always happens. But, the upside is that the operator will take care of the well production to get the absolute most out of it he can. So, you benefit in the long run. If he had let it blow bigtime for as long as it could, what you would have gotten would be about half of what prudent well managment would get you.
Will a well that tested at 200 b.o.d. & 3000 mcf with a 64/64 choke be produced the same as one that tested at 200b.o.d. & 3000 mcf with a 22/64 choke ? How do they set the rate of production ? How does the choke size get determined ?
Both Pic’s from CImarex update 6/27/12
Ron- I read that and everyone has an opinion. Only time will tell whether that opinion forcasting furture events is valid. But, the shale oil drilling horizontally and fracing has really changed the ballgame bigtime. I can only imagine the various places around the world that I have seen shale drilled through or the estimation that a shale layer below a sand body was the source rock for the oil. You start to implant our U.S. shale oil drilling technologies around the world and the “green reveloution” is still quite a ways off. Why is it off? Oil and it’s products will be made available at affordable prices to places in the world that will jump on the chance of economic development for their areas with cheaper energy or their own porduction. A real game changer to be played out over the next 20 to 30 years.
If I was a billionaire looking for some place to start a new business it would be in oil field tools and equipment including drilling rig construction.
Can you imagine how much steel pipe is going to have to be constructed to meet the demand of all shale oil horizontal drilling as this technique spreads around the world? Lots and Lots.
http://www.econbrowser.com/archives/2012/07/natural_gas_liq.html
This is a very informative article about NGL’s.
Ron, I did read that article. I also glanced at the Harvard report that he referenced and it based the production on $70/bbl. I don’t know what that price does to oil drilling in our area but if they quit drilling these plays in the US then supply should shrink fairly quickly due to the depletion curves on these wells. I would also note that 1,959 rigs are working in the US (more than the rest of the world combined) which reflects on Don’s comment about steel pipe and rigs. Can you imagine the infrastructure that will be required to drill all across the world to the extent that we do here. In short, I do believe that crude oil is finite and that it is a mathematical certainty that the amount of oil that can be produced in a single day has a peak. Some of the questions are, what price will it take to meet increased demand and will the price kill an economy that runs on oil.
Lynden Did you by chance read the article I posted here Friday? The two don’t make it look good.
Look what oil co. lawyers make. http://www.businessinsider.com/15-mind-blowing-salaries-pulled-in-b…
My Well Denisty hearing Order has been released and like most things the lawyers do, I am not sure what it means.
Here are to paragarphs that seem to be the most important.
- Relief Granted: The requested increased density well is authorized. The well
is permitted for the Woodford common source of supply underlying Section 30, Township
3 South, Range 3 East, Carter County, Oklahoma, a 640-acre drilling and spacing unit, as
an exception to Order No. 199785.
- Allowable: If well is oil well, a 160-acre allowable. All gas wells on the unit
will share a single-unit gas allowable for said common source of supply. Provided,
however, that any existing wells shall be allowed to produce all of the allowable of which
they are capable, and the well authorized hereby shall be allowed to produce the
remainder of the unit allowable.