I have interest in section 29, T14N, 9W. How do I find out about this well(s)? I have a lease with Devon Energy and a division order, but I dont know how many wells were drilled or how much or what type of material will come out. If it does produce, how will I know if it will pay? I have a distrust of this whole situation. When there is money involved people tend to try to decieve. Any answer would be helpful. Thanks! 2933-israelflag.jpg (9.25 KB)
The important well in this section is the Smith 1-29H. The completion report was filed in May. It shows an intial production rate of 152 barrels of oil per day, and 3321 MCF/day of gas. This is a nice Woodford shale well, and with good liquids production, which is a very good thing in this environment. Keep in mind that there will be varying declines in these initial rates over the coming months.
You can check these things yourself by going to the Oklahoma Corporation Commission site:
http://www.occpermit.com/WellBrowse/
With very few exceptions, companies like Devon are currently drilling ONE well per section to hold the production and set up the infrastructure. In future years, they will drill more wells as gas prices improve. They are currently doing tests to try to determine optimum number of wells per section.
Wells like this are good solid investments. It's natural to be distrustful, but I don't see anything unusual in your situation to be concerned about. I don't know how many mineral acres you own, but regardless, this should be a nice property.
Let me know if you need any more information. I have several Woodford shale mineral rights in the area, and have been receiving checks on some of them for over two years.
My family also has interest in this well. It came on just as Mr. Anderson stated below. The last time I looked at it, it was producing approximately 1500 MMCF / day and they I am still seeing several oil tickets. In other words it is declining pretty quickly.
To my knowledge there are currently no plans to drill any additional wells in this section. I have had discussions with some folks at Devon and was informed that they hope to increase the number of wells in all of these sections in the future.
You can do a "google" search for "natural gas royalty calculators" an input the requested data and receive an estimate of your natural gas income. This WILL NOT include earnings from the Liquids.
I must be doing something wrong… I went to the site and found this well but found no production data. What does MCF or MMCF mean and is there a difference? Also, I have 52 acres in this section. Will that be alot or a little when the well pays out?
JW Anderson said:
The important well in this section is the Smith 1-29H. The completion report was filed in May. It shows an intial production rate of 152 barrels of oil per day, and 3321 MCF/day of gas. This is a nice Woodford shale well, and with good liquids production, which is a very good thing in this environment. Keep in mind that there will be varying declines in these initial rates over the coming months.
You can check these things yourself by going to the Oklahoma Corporation Commission site:
http://www.occpermit.com/WellBrowse/
With very few exceptions, companies like Devon are currently drilling ONE well per section to hold the production and set up the infrastructure. In future years, they will drill more wells as gas prices improve. They are currently doing tests to try to determine optimum number of wells per section.
Wells like this are good solid investments. It's natural to be distrustful, but I don't see anything unusual in your situation to be concerned about. I don't know how many mineral acres you own, but regardless, this should be a nice property.
Let me know if you need any more information. I have several Woodford shale mineral rights in the area, and have been receiving checks on some of them for over two years.
MMCF = http://www.mineralweb.com/library/oil-and-gas-terms/mmcf-definition/
MCF = http://www.mineralweb.com/library/oil-and-gas-terms/mcf-definition/
To read the reports you must go to: http://imaging.occeweb.com/imaging/OGWellRecords.aspx
Then type in the legal description as instructed.
1002A=Completion Report
1000 =Intent to Drill
You will just have to play with them and learn what the numbers mean.
This link will take to you the Completion Report of the Smith 1-29H
http://imaging.occeweb.com/OG/Well%20Records/1DCF6F11.pdf
at the top of page two you will see a section "Initial Test Data" Below that you will see headings:
Test Date Formation Oil BBL/Day Oil Gravity Gas MCF/Day. . .
01/18/2011 Woodford 152 3321
The production data is not very timely - it is often many months late, so you won't be able to see that yet on the site.
When you start getting your monthly statements, that will be the best way to keep track of that.
MCF is a thousand cubic feet of gas.
MMCF is a million cubic feet of gas.
If you own 52 net mineral acres, that is a very nice size mineral interest.. Your first checks will likely be a few thousand dollars per month, but they will drop off a good bit after a few months.
It's not uncommon for an outright sale of mineral interests in this area to sell for $4000+/acre, so that might give you a feel for what you have; it is certainly worth over $200,000.
Let me know if you need anything else.
Francis said:
I must be doing something wrong... I went to the site and found this well but found no production data. What does MCF or MMCF mean and is there a difference? Also, I have 52 acres in this section. Will that be alot or a little when the well pays out?
JW Anderson said:The important well in this section is the Smith 1-29H. The completion report was filed in May. It shows an intial production rate of 152 barrels of oil per day, and 3321 MCF/day of gas. This is a nice Woodford shale well, and with good liquids production, which is a very good thing in this environment. Keep in mind that there will be varying declines in these initial rates over the coming months.
You can check these things yourself by going to the Oklahoma Corporation Commission site:
http://www.occpermit.com/WellBrowse/
With very few exceptions, companies like Devon are currently drilling ONE well per section to hold the production and set up the infrastructure. In future years, they will drill more wells as gas prices improve. They are currently doing tests to try to determine optimum number of wells per section.
Wells like this are good solid investments. It's natural to be distrustful, but I don't see anything unusual in your situation to be concerned about. I don't know how many mineral acres you own, but regardless, this should be a nice property.
Let me know if you need any more information. I have several Woodford shale mineral rights in the area, and have been receiving checks on some of them for over two years.
Thak you Gents! Appreciate it.
JW or Darrin-Could either of you give me the sites to pull down a completion report and then a production report?
If you were following a well's production, would you need to pull a seperate report for each month or will they be listed on the production report month by month.
Thanks
Francis said:
Thak you Gents! Appreciate it.
One way is to go to the Corporation Commission well site:
http://www.occpermit.com/WellBrowse/
Enter your legals, click on your well, then choose 'all images" or "completions" or "production".
Form 1002A is the completion report, just fyi.
As I said before the production is not timely AT ALL, and so it really is only useful for looking at past history, several months or years in the past.
There are paid services that are more timely.
Don Underwood said:
JW or Darrin-Could either of you give me the sites to pull down a completion report and then a production report?
If you were following a well's production, would you need to pull a seperate report for each month or will they be listed on the production report month by month.
Thanks
Francis said:Thak you Gents! Appreciate it.
JW-Since you have been receiving royalties for the past couple of years in the Canadian County area do you have any feel for the total oil and gas reserves that can be attributed to a single well?
I know the production from the Woodford in this area is pretty new. In my early exmanination of this area I ran across a comment that one of the companies operating in the area thought that a 640 acre unit might give up the equivalent of 200 BCF of gas. On 80 acre spacing that would yield 25 BCF per well. The examination that I have done on the Barnett shale across the river shows wells above 5 or 6 BCF since production began and their decline curves have flattened out to under 1 million a day or lower and they will probably last for several more years at a declining rate.
Have you been able to make any estimates on what the oil and gas reserves might be for a "good" Woodford shale well?
I have access to the paid production info in Texas and Louisiana, unfortunately, not in Oklahoma.
JW Anderson said:
One way is to go to the Corporation Commission well site:
http://www.occpermit.com/WellBrowse/
Enter your legals, click on your well, then choose 'all images" or "completions" or "production".
Form 1002A is the completion report, just fyi.
As I said before the production is not timely AT ALL, and so it really is only useful for looking at past history, several months or years in the past.
There are paid services that are more timely.
Don Underwood said:JW or Darrin-Could either of you give me the sites to pull down a completion report and then a production report?
If you were following a well's production, would you need to pull a seperate report for each month or will they be listed on the production report month by month.
Thanks
Francis said:Thak you Gents! Appreciate it.
Yes, I can.
The 200 BCF per section and 25 BCF per well is not accurate at all. The Cana is more in line with what you are seeing in the Barnet, and maybe a little better.
The range that you see reported is from 4.5 BCFe to 12.0 BCFe per well.
In the core, tier 1 part of the Cana, where the depth of the formation is from 150 feet to over 300 feet, you generally see reports of 8 to 12 BCFe per well. In more outlying areas, you'll see estimates in the 4.5 to 8 BCFe.
The best way to learn about this is to read the transcripts of the quarterly earnings calls for the major players: Cimarex, Devon, Continental, QEP, etc. In particular, the Cimarex transcripts are especially useful. They are available on Morningstar and SeekingAlpha.com
The Cana is a good, solid producer, and doesn't get much press because of its relatively small size.
I've been pleasantly surprised with the production curves on my wells. Occasionally, they have problems with the laterals or with the frac job, and an individual well can be a disappointment. But all in all, I'm happy with what I've seen so far.
Hope this helps....let me know if there is anything else.
Don Underwood said:
JW-Since you have been receiving royalties for the past couple of years in the Canadian County area do you have any feel for the total oil and gas reserves that can be attributed to a single well?
I know the production from the Woodford in this area is pretty new. In my early exmanination of this area I ran across a comment that one of the companies operating in the area thought that a 640 acre unit might give up the equivalent of 200 BCF of gas. On 80 acre spacing that would yield 25 BCF per well. The examination that I have done on the Barnett shale across the river shows wells above 5 or 6 BCF since production began and their decline curves have flattened out to under 1 million a day or lower and they will probably last for several more years at a declining rate.
Have you been able to make any estimates on what the oil and gas reserves might be for a "good" Woodford shale well?
I have access to the paid production info in Texas and Louisiana, unfortunately, not in Oklahoma.
JW Anderson said:One way is to go to the Corporation Commission well site:
http://www.occpermit.com/WellBrowse/
Enter your legals, click on your well, then choose 'all images" or "completions" or "production".
Form 1002A is the completion report, just fyi.
As I said before the production is not timely AT ALL, and so it really is only useful for looking at past history, several months or years in the past.
There are paid services that are more timely.
Don Underwood said:JW or Darrin-Could either of you give me the sites to pull down a completion report and then a production report?
If you were following a well's production, would you need to pull a seperate report for each month or will they be listed on the production report month by month.
Thanks
Francis said:Thak you Gents! Appreciate it.
Thanks JW, just what I needed to know.
I have gone to the OCC web site and input the well that has been drilled in the section just ot the east of my interest in Sec 30 7N-6W in Grady. Although I have a test report on the well in Sec 29 which I think you got for me, nothing shows up as to completion date or tests when I have the API number and operator. It was a Continental well, API 3505123528. I have tried a couple of times and get nothing but a Drilling Permit that is a year old and expired.
If you choose "all images" and scroll down there is a drilling permit and a spudding report. However, there is no form 1002A (completion report) yet filed. All I can say is that I've noticed that Continental, in particular, is really slow about getting their reports filed with the Corporation Commission.
Another option: I usually search with google for things like:
"Dana 1-29H" Grady oil gas
You will find several hits discussing this well. Some of the initial reports are usually on newsok.com and tulsaworld.com