I just bought a new Kia Sportage, my third in 5 years. I love them. As for investing, I do not know anyone who knows too much about how to invest, not even Warren Buffet. Read his Bio. I have twin sons in Phili who are heavy into the markets, and both of them have forgotten more about it than I ever knew. If I lost 25,000.00 on one trade like they do sometimes, I would absolutely kill myself. LOL
Since we are on how many wells it take to recover a section. Can someone tell me how far out we can frack in today’s H wells?
Also, in Logan co their are several H well on irregular spacing of 340 A and 440 A. Sure makes the checks nicer. I like my neighbors except when it comes to sharing the checks.
Yes, Virginia, you are right, I got the incorrect meaning out of this lease, partly because I did not read the fine print. HEY! It’s ALL fine print. LOL I treat it like I do everything else, if I want a cake, I can either:
- bake my own for $1.39
or
- I can pay the local baker to do it for $35.00. I choose to pay the baker because I have many, many other things I want to do and need to do, and I can afford to pay the baker.
Very same in the leaqse, I can do it all myself, and drive myself wack-o, or I can pay the Landman or whomever an exhorberant amount of my royalties, and go on to do what I want to do. Very similar to SHARE, that has become a signififcat part of our lives today. Or like a Union Member, who lets the telegraph operator send the messages, or the mechanic to fix the car, or whatever, but it costs money. To me, it is well worth it, because it would take a dozen lifetimes for me to record and publish all of the songs and poetry I have written. It is a very simple choice for me, but I still need a dozen lifetimes. LOL
Bottom line, God bless the Landmen, cause I need them.
Acceptance of reality might be fine for some, but I believe more in the WHAT IF? proposition, that has shaped every endeavore humanity has ever accomplished. Without WHAT IF we would still be rolling along on stone wheels pulled by Billy goats.
Cathy’s other half again-----I have read and re-read all the discussion on the 900000 wells and if what I get out of the discussions is that 900000 over the life of the well would only average out to about 100-125 bbd, which is no where near what I have read that they are expecting from the production of oil in this part of the country. I realize that the checks would be very good in the beginning and fall off as the years go by. The two old wells up in the NE 1/4 of sec. 20 pumped for years to make 125 bbl. We’re not complaining, just doing some arithmatic.
This is a link to a report from Pinnacle Energy Services, LLC, Oklahoma City, OK.
http://www.osageexploration.com/i/pdf/OEDV_PES_Eval_Miss_Projects_0…
Virginia, I too have invested in master limited partnerships and other oil ventures. Most have made me some money but the last one has been a disaster. I got in when natural gas prices were rising only to then have a glut on the market and the natural gas prices bottom out.
This is a video that explains horizontal drilling and fracturing.
The 900,000 number was the number of barrels of oil Osage projects to recover from each section. 900,000 barrels at say $80 per barrel is $72,000,000.
For movie lovers, TULSA mentioned below, is quite a good movie for its time, and reveals a lot about the early days of the SOONER DRILLERS, (the sooner you drill, the sooner it comes out…) It is on YOUTUBE, and well worth 80 minutes to watch. (But I swear, I have not even watched one moviie anywhere in the past 7 years. I just tired of the lies, the action, the violence, the sex, the intimidation, and look, how the White House is using it today. I refuse to let it be a part of my psyche.
This is a good article on horizontal drilling.
https://www.dmr.nd.gov/ndgs/newsletter/NL0308/pdfs/Horizontal.pdf
Cathy other half.
First that isn’t one well, it would be about 4 wells at a cost of over $3 million each. So the chance of these wells being drilled are going down fast. I also find that most wells in the Logan area according to purchaser records aren’t making 100 bbd, some are, but when you avg, I don’t see it. You have to remember they are trying to get investors, so things have to look good. New investors will go for 900,000 wells, but if you can’t figure, 100 bpd don’t sounds as good. Sounds nice, but not if you have put a few $100,000 in it with 30 other partners. You would be lucky to get back your investment in 3 years without interest and this is if one well could make that much, not 4 well.
Ronald,
Wells can be fracked more than once, but it’s costly. Also, more than one sand/shade/etc can produce at the same time. But, a lot of factures go into that.
With today information, I don’t think they are missing much, but their is still lots of learn and only time will tell.
interesting numbers. $72million per section. I’ve seen more than one time it costs about $12-14million drilling cost per horizontal hole. How many holes to harvest a section?
Larry, I am still kind of in the dark about how many wells they can put into one section. I have read, right here on this website just a couple weeks ago, that they can drill as many as they want. But at least the connotation I get from SPACING PERMIT is that they have to space wells to judicial knowledge, or, what da judge done sed. I do not know. Vertical wells, I can see moving the drill over a hundred feet and going for it again if they hit nothing. The character James Dean in GIANT is how most people get their knowledge of oil well drilling. That is Hollywood and there are many tricks. Hollywood used the “gas bursting out into flames from a faucet or water supply” years and years ago, pure intimedation and lies, such as, the Movie TULSA starring Susan Hayword WAY BACK in 1958, a cowboy bent down to a level of water in a creek, lit a match, and POOOOOF! Big fire and he had to douse it out with splasing water with his hands. These are all Hollywood lies, pure and simple lies and intimidation.
How many days does it take to drill these Horizontal wells in Logan County?
Cathy other half.
I think you are comparing apples and oranges (investors vs. mineral owners). I only posted the Osage investor presentation to show what Osage believes they can recover in oil just to give us mineral owners some idea of what the payout might be. I posted some numbers earlier on this blog as did r w kennedy. Also be careful comparing oil production. Most of the wells in Logan Co are vertical wells most of which were drilled during the oil boom in the 1980’s. If you want to compare production, you should look only at horizontal wells.
Osage is a publicly traded company and the stock is at $1.75 today. In my view, it is a risky investment for the average investor.
Vern,
I guess I must of misunderstood the 900,000 presentation that I thought Osage did.
Any oil and gas venture is a very high risk. I hate to think what I lost this year in Canada and Mexico partnerships. Guess it makes good write off if I live long enough.
I have a large tract of minerals in Logan, Noble and Garfield co and I have not seen the H-wells come in in big BPD. Now if we go to Wood Co, those are some big numbers.
I have a spud date of 1/26/2013, when should they been done and when will it start producing?
I was searching for information on oil drilling and ran across this website for the Oklahoma’s Oil & Natural Gas Producers & Royalty Owners.
The OERB is funded through a voluntary one-tenth of one percent assessment on the sale of oil and natural gas in Oklahoma, paid for by oil and natural gas producers and royalty owners. It has some very good information on the “News and Media” page and some great videos on the “Industry” page that explain vertical and horizontal drilling and hydraulic fracturing.
Maybe 99% of vertical wells in N Central Okla just missed many “gushers” by inches? They still know little about what is down there. They can guess, and my guess is that a 900,000 section would start out at a high end and then peter down to a trickle over the remaining 18 years of its life. Can they frack it more than once, say if they do more than they thought they would, and then thinnk they are within reach of some real high producers? Of course it would be a roll of the dice. The info I have on the production of every major Oil find on the planet is that the discoveries are made by ACCIDENT, after initial low producing and expection wells are drilled, the Bakken and Green River, 2 of the worlds biggest proven producers in our own nation, were only proven after several months-years of producing. The gold rushes of the Carolinas, Alaska and California were not all that impressive at first, only until near their peak, did everyone realize what we had. And it still is not over, a new CA gold rush is on at this very minute, began just a couple months ago. I firmly believe that N Central Oklahoma S Central Kansas is going to surprise a lot of people who thought they knew a lot about what is happening. Just hide and watch.
I am looking to sell some minerals in Logan County. See the listings page for more details.