Now that there finally drilling on our land and the price of oil is going down,what does the forum think it will have to go to in order to stop drilling.i hope that never happens I have waited 50 years for a drill and now this.
I won't try to project the oil price as to when companies will stop drilling -that will totally depend on each company's internal economic guidelines in combination with the quality of the well / area in question.
But with increasing differentials for oil (i.e. the realized price that companies receive for a BO), I would get very concerned if oil prices drop below $80 per BO. Right now differentials are in the $12-$15 per BO range in the Permian Basin, so realized prices @ $80 are really $65 to $68 per BO.
Well costs will not be dropping to match oil price drops, so economics will suffer with lower oil prices.
I would expect to see some companies slow down development drilling / infill drilling as prices drop. With the unit / acreage HBP (held by production) of the first well, there is no pressure to drill more wells to preserve the acreage.
All this is just my opinion, of course. I would be curious to hear comments from other Forum members on this issue.
Question.our well is almost finnished and we were told they weren’t going to frack it for a couple weeks ,is that normal to wait like that?
Very normal - it may sometime take several months to frac a well once drilling rig moves off location. Lot of issues control the timing but most important is getting a good frac crew to do the work.
Thanks, I didn’t realize it was such a big deal ,They said 2 weeks does the oil and gas come then.?
First the frac and then the equipment is moved off location and the well is flowed back to unload spent frac fluid. O&G will come out this this flow over time.
Volumes of O&G will depend on how effective the frac is.
After a period of testing, well will be shut in until production facilities are in place to produce the well 24/7/. This will probably include the installation and hook up of gas pipeline to avoid having to flare the gas.
Mr. Browne, Thank you for your questions.......and Rock Man, Thank you for sharing your knowledge....I am sure I am not the only one following this discussion and learning!!!!
Rock Man you sure know your way around a oil well.i have done work in refineries but never around the wells. Thanks for you information. I don’t think there going to move the rig as they said they were doing 2/3 wells in the same area so wait and see.
What’s the going rate for watering the area. Anadarko has offered us .60 a barrel for water from 40 acres of our land.how much water do they use to frack a well and is .60 a good deal? There all done with the drill now they said they will frack in about 4weeks.
Checked on some recent Anadarko completions in Loving County. Looks like well over 100,000 BW used for frac operations is the norm.
I can't comment on the price per BW - hopefully others will have some numbers for this issue
Ask for $1 per barrel.
When a well is fracked how soon does oil and gas come ?
How long does it take for results of fracking
Re-Posting comment from last month:
After frac, the equipment is moved off location and the well is flowed back to unload spent frac fluid. O&G will come out this this flow over time.
Normally operator will start post frac flowback 1-2 weeks after getting all the frac equipment off location.
Volumes of O&G will depend on how effective the frac is.
After a period of testing, well will be shut in until production facilities are in place to produce the well 24/7/. This will probably include the installation and hook up of gas pipeline to avoid having to flare the gas.
I wondered if someone here could explain the concept of hedging. Matador is set to drill this month on one of our acres in Loving. In its conference call yesterday, the company said that it had earlier "hedged" its oil price (at approximately $90 a barrel) through most of 2015. Say, Matador completes the well in April. I am assuming then that we, the mineral rights owners, would receive compensation at $90 a barrel rather than at the price of oil at that time. (Let's pray it's not below $50 then.) Is the scenario I describe above correct, or is it more complicated than I am describing?
Hedging is like the farmer who used to contract to sell his crop at a specific price long before it was harvested to protect against price declines. More complicated though, and unless you have an unusual provision in your lease, it is very likely you will not receive the hedge price.
Use the search feature in the upper right hand corner, as there was recently a discussion somewhere on this site on this topic, including an explanation as to why it was not really feasible for producers to try to pay royalty owners the hedge price.
Anadarko is going to frac our well between Christmas and New-year they say it's a 36 stage Frac ,just what does that mean.
36 stages mean that they will break the lateral into 36 separate frac stimulation stages - probably about 300' long each. Perforate and frac then set drillable plug before perforating and frac'ing again until entire lateral is frac'd.
Expensive process
Just an update. Our Frac is complete. They are drilling plugs now and should start flow in next couple weeks . I just got this yesterday what is ment drilling plugs?
They are drilling out the plugs they set during the frac process to open up the well bore.