Payne County, OK - Oil & Gas Discussion archives

Get ready for oil prices to up! Exxon has made Permian Basin deals of nearly $10 billion in just the past two days paying over $30,000 per acre which is lower than record values but still higher than historical averages.

Hello again, for some reason I haven’t been getting emails/posts to the forum (was it something I said?) Anyway, I’m going to try to catch up on the posts for the past few months. I don’t how long ago it was Martha that (I think) you discussed using CO2 instead of harsh chemicals, anything new on that or other technological movements? Anything in the past conversations that I especially should look at?

I’m sure we’ve all seen the TV ads for a law firm wanting to sue for earthquake damage which brings two things to mind: how you gonna PROVE the well that caused the damage & is this going to force the companies to lay out a lot of cash for defense lawyer fees??

I apologize for being a bit wordy tonight but it’s great to be re-connected

Glad to be in 2017, 2016 was a disaster for me

Best

Steve

Steve, It’ must be something we said, because I haven’t been getting emails for a while even the ones from my forum friends that are asking me direct questions.

Your question about CO2 is that new technology has enabled injection of CO2 and other naturally occurring gases into areas of low pressure for enhanced oil recovery. And, CO2 has successfully been used for fracking. Makes sense to use CO2 in our area, because it’s low or normal pressure and we have waste water issues.

https://www.technologyreview.com/s/512656/skipping-the-water-in-fra…

Steve, what’s happening right now is that the severe price drop in 2014 and subsequent drilling fall off left reservoir analysts hanging, so that company’s 1099 reporting currently does not reflect true US reservoir amounts. The World is fudging on reservoir amounts also. The rest of 2017 and 2018, analysts and reservoir engineers are going to get to the bottom (literally) of it all. Hopefully, we will then see equilibrium in production where we will know if there is to much or to little, oil prices should stabilize and companies will use the new estimates to determine the costs of developing our area.

Continental’s Harold Hamm’s opinion. http://fuelfix.com/blog/2015/01/28/hamm-oil-prices-could-rise-soone…

Anyone with wells moving from Devon to White Star notice a decrease in royalty payments? I’ve not followed up on production numbers but will. Production with Devon has been consistent for past year. Oil prices have varied but I don’t think accounts for the decrease.

Thanks Martha, it’s good being back in the loop. Sounds like we’ll be left hanging for a while. I’m a few years past retirement and trying to start a small business which could use capital but bailing out now would bring in about 25% of what it would have a year and a half ago so I guess I’ll hang on and hope for the best. It will be interesting how Trump affects the process, I’ve heard a lot of speculation.

Does this earthquake stuff ‘shake you up’ '?

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Phillip, some of my wells have improved but not by much. The oil markets are trying to reach equilibrium where there is no shortage or surplus so prices can stabilize, but it may take another year or so. I would guess that White Star, for purposes of long term reservoir management, has restricted flow rates in some wells in order to flatten overall declines. Just guessing.

White Star is doing major rebuilds on many former Devon wells, they are pulling ESP pumps and replacing with pump jacks. The operating costs on these wells are dropping significantly. There are production interruptions that have been 30 - 60 days on some Logan County wells, flow rates after restarting are in fact meaningfully lower. I hope they are right that slowing production to get more oil at higher prices producing more total revenue (NPV).

Rick, thanks for the info. Reports out today claim Saudi’s are curtailing production, but they claim they will not continue unless US shale producers cut production also. Looks like we are experiencing adherence to that month old agreement. Saudi’s desperately need higher oil prices, but don’t want US shale reaping all the rewards.

Steve, the earthquake stuff is under control. The west coast subducting plate movement and the Mid Atlantic rift spread affects OK, KS and some surrounding states, so there is always a lot of tension in the faults. With all the fracking, they now know where the most sensitive areas are in OK and may have to use CO2 or some other waterless fracking in those areas. I think it’s a good thing to know where the quake sensitive faults are.

FYI Ethridge 36-2 WX (01-17N-04E) with active date of 01/16/2014 has been down for maintenance as per White Star owner relations since April, 2016 with minimal amounts of natural gas produced. No indication as to how long the maintenance will last.

Thanks all for the info. Perhaps Long Branch 9-20N-2E is in maintenance mode. On statement only oil produced in Oct 2017 no gas. I spoke with White Star owner relations. Laurie only person in that position. She said she was trying to return calls as soon as she could. Laurie also only person to respond to web site OwnerRelation@WSTR.com. I asked who could I speak with to encourage more support. She indicated the company was trying to add more support staff. Will see what happens with White Star over next few months.

Another White Star Contact:

Lynzee.Kever@wstr.com

Lynzee Kever

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Owner Relations Technician 405-252-5755

Sorry that came out in big bold letters. I copied and pasted from her email. White Star is charging me post deductions and I have a no deduct clause in my lease. They are supposed to be correcting it, but haven’t yet.

Thanks Martha for the contact info, and for sharing your knowledge with the Payne county group.

Months ago I contacted White Star as 4+ wells were showing low to no production. I was told the ESP pumps were down and they would replace with insert pumps and Pumpjacks in the coming months. White Start is trying to keep down LOE cost. In O&G there are budgeting for LOE (Lease Operating Expense) and budgeting for capital expenditures AFE (Authority for Expenditure) Repairing and mainteance falls under LOE cost. Companies performance etc, pay it based off of making or not making LOE budgets. Hopefully with oil up a bit they will get out there and make the needed repairs to bring production back online. However while they are still producing small amounts with production equipment down they are still holding the lease open. Nothing we can do about that but wait and hope.

India is taking over from China as the world’s largest importer of US oil and LNG with demand growth expected to hold through 2040. Major analysts and EIA predict 2017 oil prices will rage from $10 to $90, but claim 2017 will be the year oil prices stabilize. So, I guessing a push down to $10 will just be an opportunity to invest before the quick rebound.

Late last year, White Star acquired 12,000 net acres, mostly held by production, from Double Energy, 18,500 net acres from Lighthouse Oil and Gas and Sundance Energy’s 18,500 producing and non-producing net acres in Dewey, Garfield, Logan, Noble, and Payne counties. The Sundance deal should close in the second quarter. And White Star increased their borrowing base by 55 million. White Star, formerly AEP Woodford, now has over 200,000 net acres in north central Oklahoma and will be drilling more wells.

Quentin, dates always have significance. What is the section, township and range and names of the wells?