Gonzo hunter well - Magnum Hunter Resources, Operator

Has anybody heard anything about the Gonzo-Hunter well (4 miles northwest of Moulton) which started drilling in early June?

You are going to need to provide a little more detail to get a reasonable answer. Are you asking about Moulton, TX?

Yes, Moulton, TX. The well was being drilled by Magnum Hunter Resources.

I think they put out an update about 3 weeks ago the the well was drilled and they completed their lateral out to around 4300 feet. Are now waiting on frac job which should happen toward mid sept. No frac equipment readily available.

This should be a good one to watch. The TMD is 13,750 feet with the 4300 foot lateral. Reports are that the mud logs are “promising” They are hoping to post results by the end of September. MH is focusing on the “oilier” areas of the trend. They have a very good map of the trend going northeastward. Here is the link:

http://www.magnumhunterresources.com/images/ops_texasgulflarge.jpg

I asked this question on one of the other forums but didn’t get a reply. The freshest rumors around Moulton are that the well is fracked and it is a good producer. Does anyone have any reliable sources that can confirm that?

Mike Igau said:

This should be a good one to watch. The TMD is 13,750 feet with the 4300 foot lateral. Reports are that the mud logs are “promising” They are hoping to post results by the end of September. MH is focusing on the “oilier” areas of the trend. They have a very good map of the trend going northeastward. Here is the link:

http://www.magnumhunterresources.com/images/ops_texasgulflarge.jpg

Look like the Operator of record is Sharon Resources from the RRC website.

check out all the maps of that area of the Eagle Ford at http://eaglefordinfo.blogspot.com/ Tons of information about that area on that blog.

ttl said:

I asked this question on one of the other forums but didn’t get a reply. The freshest rumors around Moulton are that the well is fracked and it is a good producer. Does anyone have any reliable sources that can confirm that?

Mike Igau said:
This should be a good one to watch. The TMD is 13,750 feet with the 4300 foot lateral. Reports are that the mud logs are “promising” They are hoping to post results by the end of September. MH is focusing on the “oilier” areas of the trend. They have a very good map of the trend going northeastward. Here is the link:

http://www.magnumhunterresources.com/images/ops_texasgulflarge.jpg

No official IP released yet but in their presentation at IPAA today Magnum Hunter did reveal that the well is now flowing to sales and that the IP will be “in the range of between 1,000 and 2,000 BOE/Day”. Said that the well rates are still improving as the flow “cleans up” so they will wait for another 7-10 days before releasing the final IP test rates.

In any event, very good news for the area.

In the presentation, it sounded like Magnum Hunter is holding back on what the Gonzo well will potentially flow. There seems to be a pattern of operators trying to understate production while they continue to lease acreage on the cheap. I posted a update on the reasoning behind $30,000 per acre & 27 1/2% royalty today at http://eaglefordinfo.blogspot.com/2010/10/eagle-ford-road-to-riches-history-of.html The Eagle Ford Road To Riches: History of Big Deals & Lease Flipping & Why Your Oil Window Acreage is worth $30,000

David J. Gaar said:

No official IP released yet but in their presentation at IPAA today Magnum Hunter did reveal that the well is now flowing to sales and that the IP will be “in the range of between 1,000 and 2,000 BOE/Day”. Said that the well rates are still improving as the flow “cleans up” so they will wait for another 7-10 days before releasing the final IP test rates.

In any event, very good news for the area.

An interesting blog…

http://info.drillinginfo.com/urb/eagleford/operators/2010/10/magnum-hunter-jv-what-can-drillinginfo-tell-us/

“I don’t like to buy acreage for fair price, I like to go in and put a play together where we put our army of 5,000 landman to work, and we are buying it lease by lease for a very inefficient cost average to the rest of the industry to try and replicate and we make it a transaction where there is not a public market, it’s us and the landowner and we’re gonna most generally going to get the benefit of that side of the transaction, so think about again every time we move we are buying acreage worth 5 to 10 times what we pay”

Aubrey McClendon chief executive officer, chairman, and co-founder of Chesapeake Energy

you can find the link to the presentation where Mr. McClendon made that bold statement to investors at http://eaglefordinfo.blogspot.com/2010/10/collection-of-eagle-ford-maps-from.html

That Drilling Info/Eagle Ford blog is consistantly interesting and informative. Definately on the most visited bookmark list on the computer…



Chad Leonard said:
An interesting blog...

http://info.drillinginfo.com/urb/eagleford/operators/2010/10/magnum...

We have property between Moulton and Flatonia and are wondering if anyone has any updates on the Gonzo Hunter well.

It’s not really in the Operator’s best interest to disclose production figures unless it’s privately to their investors. Other than the feed store rumor mill, I don’t think we’ll see anything definitive until Magnum is required to post it on the RRC web site. Right now the latest information I can find there is from August, so it may be a while.

Hopefully you can find it here when the time comes: http://webapps2.rrc.state.tx.us/EWA/operatorQueryAction.do?methodToCall=selectOperators

The Operator is actually a sub of Magnum Hunter called Sharon Resources.

In their investor presentation back on 10/12, Magnum Hunter did say that the Gonzo Hunter #1 has been released to sales and that the IP, when released, will be in between 1,000 to 2,000 BOE / day range. Said that the well was still “cleaning up” so that they do not plan to have the official IP test completed until after that process.

In any event, it should be pretty clear that the well is a very strong producer which should bode well for others with land/minerals in the vicinity.




Cathy Zapalac said:

We have property between Moulton and Flatonia and are wondering if anyone has any updates on the Gonzo Hunter well.

Acreage In The Eagle Ford Oil Window Will See Lease Bonuses of $30,000+ per acre & Royalty 27 1/2%+ ……that will happen sooner rather than later

We are at a tipping point for a rapid acceleration in lease acreage terms. Before long you will be seeing unbelievable lease terms because the economics of the oil window are so strong it’s hard to really get your head around. Each acre of most of the oil window has a minimum Estimated Ultimate Recovery of 5,000 boe worth $410,000 up to 15,000 boe worth $1,230,000 and that is not a typo, it’s backed up by fact and comes from operators own words. Get informed about your land and what it is worth at eaglefordinfo.blogspot.com

W G, I’m excited about the latest map that you posted here http://eaglefordinfo.blogspot.com/2010/10/collection-of-eagle-ford-maps-from.html with the orange line running SW-NE. The accompanying text is even more encouraging. My place is almost on the line if you extend it on to the NE into Fayette County, but before I go out and buy two or three Escalades, can you provide some background as to where you got that information? Thanks.

I spent a little time at the Fayette County Clerks office in LaGrange earlier this week. Although there is leasing activity going on throughout Fayette County, the region that is seeing the most leasing activity over the past few months seems to be centered between Flatonia-Schulenburg and Muldoon-Swiss Alp.

Still very early in this game and my hunch/hope is that the trend activity should continue even further Northward to include much/most of Fayette Co. as things progress.

Check out this October 2010 map from Clayton Williams, I have posted below. Interesting to me, as it does show the EF trend continuing onward through most of Fayette to also include Western Washington, Eastern Lee and into Burleson and Brazos counties as well.

FYI - the Eagle Ford formation even continues further Eastward as I have seen it starting to be listed on the formation records for well reports as far East as Nacogdoches and Sabine Counties. Starts to get pretty shallow (around 5,000’) in those far eastern counties however, and Clayton Williams has previously said that if things get too shallow then the well economics start to get unfavorable as the shallower depths lack sufficient pressure.

It seems, however, that much of Fayette should be situated nicely within the trend.

Our own land/minerals are in Western Washington county right on the border of Fayette near the Round Top, Greenvine, Burton area. That said, I am watching developments down South with baited breath and waiting for things to continue onward/upward towards our own direction.

Best of luck with your own prospects.

=

Washington Irving said:

W G, I’m excited about the latest map that you posted here http://eaglefordinfo.blogspot.com/2010/10/collection-of-eagle-ford-… with the orange line running SW-NE. The accompanying text is even more encouraging. My place is almost on the line if you extend it on to the NE into Fayette County, but before I go out and buy two or three Escalades, can you provide some background as to where you got that information? Thanks.



David J. Gaar said:
I spent a little time at the Fayette County Clerks office in LaGrange earlier this week. Although their is leasing activity going on throughout Fayette County, the region that is seeing the most leasing activity over the past few months seems to be centered between Flatonia-Schulenburg and Muldoon-Swiss Alp.

Stil very early in this game and my hunch/hope is that the trend will continue even further to include much more acreage further Northward as things progress.

Check out this October 2010 map from Clayton Williams. Interesting to me, as it does show the EF trend continuing onward through most of Fayette to also include Western Washington, Eastern Lee and into Burleson and Brazos counties as well.

FYI - the Eagle Ford formation even continues further Eastward as I have seen it starting to be listed on the formation records for well reports as far East as Nacogdoches and Sabine Counties. Starts to get pretty shallow (around 5,000') in those far eastern counties however, and Clayton Williams has previously said that if things get too shallow then the well economics start to get unfavorable as the shallower depths lack sufficient pressure.

It seems, however, that much of Fayette should be situated nicely in the better part of the trend.

Our own land/minerals are in Western Washington county right on the border of Fayette near the Round Top, Greenvine, Burton area. That said, I am watching developments down South with baited breath and waiting for things to continue onward/upward in our own direction.

Best of luck with your own prospects.

=

Washington Irving said:
W G, I'm excited about the latest map that you posted here http://eaglefordinfo.blogspot.com/2010/10/collection-of-eagle-ford-... with the orange line running SW-NE. The accompanying text is even more encouraging. My place is almost on the line if you extend it on to the NE into Fayette County, but before I go out and buy two or three Escalades, can you provide some background as to where you got that information? Thanks.