Low production

#1

I get the completion well report for Grady County. Today I saw a new well that is producing 34 barrels of oil and 46 mcf of gas. With the cost of drilling a well over 10 million, this well will have to improve substantially. I have seen a lot of these low production numbers recently. How can this be?

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#2

A very noteworthy Observation. Will be Most interesting to see the answer. Thanks for Asking.

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#3

Here is a article that sort of goes with this forum discussion . Oil Prices Spike On Shale Slowdown | OilPrice.com
the “parent/child” well caught my eye.

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#4

Thank you Darrin. Interesting.

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#5

Hi John:

An easy answer to this in layman’s terms is “not all dinosaurs are created equal”. There is a difference in shale from section to section and even within each section. Inasmuch as shale per say, has no oil in it that is currently producible, the oil/gas lay in the fractures in the shale. The more fractured the shale, generally the better the production. (There are additional factors) In one of the sections that I have participated in, one well came in with an IP of over 2,000 barrels. The offset, 660’ away, less than 500. That is the nature of this business. Always has been and always will be.

Todd M. Baker

Todd M. Baker

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#6

Tks Todd. Stands to reason different locations hold varying amounts of X or Y.

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#7

Also note that the completion report is only a very short time period while the well is cleaning up. Not a very reliable indication of what the well will do. Wait a bit to see if it cleans up and stabilizes.

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#8

PEOPLE its all production with out the well being fracked. Its a smoke and mirrors ploy

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#9

Hello Brian. Would you explain your reply. The results I see on the completion list is before the wells are fracked? Smoke and mirrors?

Thanks

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#10

23&24 7N 6W were both low producers from the Springer. The trend appears to be farther South. I understand one well not being in the formation, but two is highly unlikely.

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#11

They were, Tom, according to the Completion Reports i.e. 99 bpd for the Lowers 4-14-1-2XHS in 23-7-6 and 12 bpd for the Birt 3-13-12XHS in 24-7-6.

But the actual Gross Production Reports show the Lowers well at 39,748.95 barrels in November in the first month of production (1325 bpd not 99 bpd) and the Birt well at 18,028.59 barrels in November in first month of production (601 bpd not 12 bpd). I think the other 2 or 3 wells in each of the multiple wells in 24 and 23 should show about the same first month production as these Lowers and Birt wells.

I don’t know why the big discrepancy but the Gross Production figures are great news for the Springer formation in Springboard.

Here’s the November Gross Production for the Lowers well.

Lowers gr prod.pdf (154.6 KB)

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#12

Completion reports are the test after fracking. If there was no frack, there would be no flow (or not much). The test covers a very short time period and usually contains quite a bit of the frac water returns, so is not indicative of the real flow.

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#13

Thanks M.

It happened again.

Version:1.0 StartHTML:000000255 EndHTML:000192879 StartFragment:000192368 EndFragment:000192809 StartSelection:000192404 EndSelection:000192799 SourceURL:Oklahoma oil prices and drilling report for April 16, 2019

Grady: Continental Resources Inc.; Birt No. 2-13-12XHS Well; NW1/4 NE1/4 NE1/4 NW1/4 (BHL) of 12-07N-06W; 34 barrels oil per day, 99,000 cu-ft gas per day; TD 22,370.

Continental Resources Inc.; SS McCalla No. 1-12HS Well; SE1/4 SW1/4 SW1/4 SW1/4 (SL) of 12-07N-06W; 68 barrels oil per day, 77,000 cu-ft gas per day; TD 16,931.

Gross production for the Birt was 562 bpd not 34 and for the SS McCalla was 300 bpd not 68.

Birt gross prod.pdf (161.6 KB)

McCalla gross prod.pdf (155.2 KB)

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#14

The Birt well was from the Springer formation and the McCalla well was from the Goddard formation, both in 12-7-6…

Formations.pdf (143.1 KB)

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#15

Here’s another view of the formations.

Scoop Formations.pdf (196.9 KB)

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#16

Just curious how you came up with 562 bpd when it looks like the well was completed in September with reported production and not again until November. Would you take the 16871.27 (gross volume of oil) and divide it by two months rather than 1?

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#17

https://www.mineralrightsforum.com/uploads/default/original/2X/7/762b803a1db3fae583463b59c931a5632e112951.pdf

The Gross Production report shows separate production figures for both months, 2,759.83 barrels for September and 16,871.27 barrels for November i.e 562 bpd.

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#18

So are October sales on a different report or are you saying the Brit did not produce in October and the 16,871.27 barrels was just for the 30 days in November?

Thanks for the information, I am just trying to understand the production side more.

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#19

Good question.

But either way, the Birt is producing a lot more than 34 bpd!

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#20

Yes it is. Have investors with Non-Op WI’s in a lot of these CLR Springboard wells and have only seen completion reports that are all this way and I didn’t know the completion reports were for such a small time period and had a lot of Frac fluid/backwash that waters the IP down so much. Reading this gave me a lot better feeling about the project.

Thanks again.

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