My family has a small lease in this section and we know of two producing wells. Chesapeake is only paying on production of 100.00 or more per month. We are getting a check every other month. Yesterday, we were offered 4000.00 per acre to sell. I can’t figure out why. Any ideas?
This area has multiple pay zones and most of them have not been drilled yet. The buyers are betting on the upside potential of these other pay zones. Also there are improvements being made in the gathering and production facilities in the area which may help production from existing wells. The Wyoming Oil and Gas site has listings for permitted wells in the area and zones to be tested.
I know how to look up well permits approved or submitted. I don’t know anything about looking up zones to be tested and what does that mean.
Might try looking on the Chesapeake website at www.chk.com and go to investors section then open some of their presentations and look at what they say about the Powder River Basin. In a number of them they show the possible pay zones in the area (Jan 2019 for one). Since the shale wells are drilled horizontally thru the pay only that one zone is tested in the well.
Thank you, I will do that.