I have a membership to NDRIN and 4 of our wells just came off the confidential list earlier this month and now they are listed as DRL as their status, can anyone tell me what this means and how long most wells stay in this status before they start producing??
Thanks so much,
DRL simply means drilling. It usually means the wells are waiting to be fracked. Some operators when drilling several wells wait until all of the wells are drilled before they frack them. I had 2 wells drilled but I think my operator was low on money so they were drilling wells to hold leases but not fracking them because the fracking cost as much as drilling the wells. It took 9 months before my operator fracked the above mentioned wells, during which time the price of oil fell $20 per barrel. My operator KOG received a $600,000,000 loan and then they started fracking wells. I would say that your wells should be fracked within the next 6 months and probably sooner.
Thanks so much RW I appreciate your input, I believe you are correct as we have not received any division orders as of yet for these 4 either, and that seems to signal us that they are producing.
Lou, it's a matter of when, not if. The operator probably has 20 million dollars tied up there and it's all for naught if the don't complete the wells. With the price of oil where it is, it's a good time to have brand new wells, fresh and producing at the highest rate of their lives. If the price of oil were to drop $20 it would cost the operator a million dollars a month if the wells are just decent. I think the operator will want those wells producing more than you do. Just a matter of time.
Had one more thing to run by you. We still have not received div orders on these and they are still listed as DRL status, so I looked thru NDRIN which I have a membership to and saw where the owner of the land and the oil company just signed a Right of Way agreement and all 4 of these above wells were included on this. The agreement was just recorded earlier this month, could this also be the hold up on production???