Project Springboard (SCOOP Related)

Oklahoma Mineral Rights Grady County, OK
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It’s not the porosity that is the issue, the matrix porosity in the Woodford is almost always greater than the porosity in the clean intervals of the Sycamore that have become horizontal targets of late. What is different is the magnitude and intensity of natural fracturing present in the Sycamore (Mississippian age rock) vs Woodford (Devonian age rock). Remember the Miss Lime play in northern Oklahoma? Sometimes the initial wells in the section would have huge IPs and look great, but infill wells would always greatly underperform the initial well. Same issue in the Sycamore, not surprising given that we are talking about Mississippian age rock in both cases.

Operators are not clueless when it comes to this fact and that’s why you see well density for the Sycamore of 2-4/unit vs. 5+/unit for the Woodford despite the fact they are of comparable gross thickness.

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I thank both of you for your input and information. There is not enough well information in the Springboard area for me to get a good handle on the reserve potential on a per unit basis.

Do you believe that the reserve potential is similar to the Woodford but will take fewer wells to recover, much like the Springer? Or is it the case that optimum well density and recovery has just not been sorted out yet and we just don’t know? With the co-development of the reservoirs, I hope CLR has a better handle on this than what has been publicly shared.

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Geologist here… It all comes down to the interconnectedness of the pores through the permeability. More natural fractures will be enhanced by the frac so better permeability. Think of a series of barbells set up end to end-or the old Tinker Toys. The ends are the pores and the middle is the permeability. A straight wide bar in the middle is much easier to get through than a skinny twisted bar. Short term production is coming from the pores via the permeability very close to the borehole and the enhanced permeability due to the frac. As time goes on, the molecules of hydrocarbons have to come from farther and farther away through very tortuous routes similar to a tree route system.

Not enough public information yet for us general mineral owners to get an idea of the different production amounts. The companies have more confidential data.

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TS & Jake:

I’m sorry. I meant the Springer, not the Sycamore. The wells that I have participated in, in the general area, are running about 8-10% porosity in the Woodford vs. 12-14% in the Springer. The recovery factors in the Springer are running about 15% vs. 10% for the Woodford. It doesn’t matter to the mineral owner, but sure does to the working interest owners because we have to spend more money to get the same amount of hydrocarbons.

The Sycamore wells are running about 8% porosity with 8% recovery factor.

The company presentations are nothing more than sales brochures to get Wall Street to buy their stock. They should always be taken with a grain of salt, so to speak. That is why they use “BOE” instead of actual BO/MCF. It makes it easier to be wrong, but like you say:

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How is Section 32-07N-06W doing in the Springboard? CLR should be in row 3 by now.

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http://imaging.occeweb.com/OG/Well%20Records/1DD8A549.pdf CHESTER 2-32-5XHS

http://imaging.occeweb.com/OG/Well%20Records/1DD8A19B.pdf CHESTER 3-32-5XHS

Papa - They are in row 3. Probably waiting on fracking and completion now. When I went through last week they were fracking/completing 3 wells east of Tabler (I say 3 wells, but it is 3 locations so it could be 6 wells or more)… so they are headed your way.

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Section 7-6N-6W … New applications - Cause CD NO. 201901646 thru 201901653

Total of 3 new wells in the Goddard formation (Springer). Wells will be in Sections 7 (BHL), 18 & 19 (SHL).

Not sure why I haven’t gotten anything in the mail yet. Found listed on OCC’s Case Processing Web Application.

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Can any of you pros help me understand how, within the Springboard Project, oil is measured and transported? In the past, a company employee (pumper) measured the oil every day and a separate independent company (refiner) picked the oil up and the tally was made between the two. We could look up what the refiner picked up (bought) and what they paid for it on the Oklahoma Corporation Commission website.

As I toured the Springboard Project last week, it was easy to see how they are piping water to a central reprocessing site. Are they doing a similar thing with the oil and just quaking it somewhere along the line? I noticed a great deal of above-ground piping connections that could have been either for gas or oil. I can’t seem to find who, if anybody, serves as the independent company who measures and buys the oil as the production is now reported by Continental on the gross production site.

Any help in understanding what, if anything, may have changed from the older system would be of great help and interest. Thanks.

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Jake: I think technology has passed us by. In short, they don’t gauge the tanks anymore. Both gas and liquids volumes are measured with electronic devices. Most of the bigger operators send the oil directly down pipelines to Cushing or other collection facilities to gain a better price advantage. The multi-well pads improve their efficiencies and thereby reduce the operators’ costs.

The “old” way still takes place where there aren’t multiple wells on a single pad.

Todd M. Baker

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We have been offered $2,000 an acre from Turner Oil and Gas on behalf of Continental at 1/8 and $2,750 an acre from Blue Chip Energy Partners in Section 2, Township 9N, Range 8W in Grady County. Do these seem like reasonable offers for this section?

Thank you.

2 9N 8W offer Grady County
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Thanks, Todd, that is what I assumed. In driving around, I never saw a tanker truck. Suppose there is NO way now of getting a feel for the production rates until we get a pooling order on the wells that have been drilled on us and get into the CLR system.

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You will get a Division order for the wells, but it will not have production on it. You can search on the OK tax site for the wells and the production is posted there. It is not entirely accurate (especially for gas), but it will give the general idea. They will be about four-five months behind.

https://otcportal.tax.ok.gov/gpx/gp_displayPublicPUNListSearchDownload.php

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Jake - If you are savvy, you can obtain most of that information from the various flow meters on the well equipment. :grin:

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Well, it is going to have to be a savvy Oklahoman… I am down here in San Antonio. If anyone gets any info on the 3 Wheeler Farms wells, I would sure be obliged. When I was up last week, I only saw 4 rigs working in the Springer area, west part of Township 6N, Range 6W. New road and locations were built for the Ewing wells. Did CLR let a couple of rigs go?

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Thanks for the help. We are going to have a small WI as well as an RI and I was trying to get all info I could before we get the pooling order and need to pony up some money. If we get lucky again, maybe it will be a few more months before we get the order and will have a bunch of money coming back in short order. Does anybody know the first production dates for the Wheeler Farms 1, 2, 3? I am guessing late February or early March?

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Look the names up on the Tax site. The active date is usually first sales.

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Jake, I’ve also been concerned with the slowdown of Springer activity in 6N 6W. I’m waiting for a long lateral in Section 10, proposed over a year ago. I don’t see any recent permits for the Springer in this Township. We are also in the SE part of the Township and have seen a flurry of activity here, Woodford and Miss. I’m thinking CLR moved their Springboard rigs here for some reason. Does anyone think the Springer wells did not turn out to be what CLR expected in Springboard?

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Hi John:

I am participating in several Springer units and like almost all areas, some wells are great, some wells average, some wells not so good. Nothing different here. As I have stated here before, I am in one unit in 6N-6W where one well had an IP of over 2,000 bopd and the offset, 660’ away, was around 500 bopd.

We also hope for the best, but know not all the dinosaurs are created equal.

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We should get a great deal of info at the end of the month from the CLR earnings presentation and CC. I did notice that CLR did not do a March update or attend the Howard Weil conference which they had done for several years. They had 45 wells waiting on completion so I expect a great deal of info. I would also not be surprised if they wait and get some additional information (from production) as to the optimum unit well density levels for each formation.

We continue to get better offers to lease, now $3,000 per acre with a 1/4 royalty as of last week.

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How about something like this in Grady County?

9 Wells in Blaine County totaling 7,422 bpd.

With a survey something like this.

Blaine 9 wells.pdf (203.7 KB)

COMPLETION

Blaine: Newfield Exploration Mid-Continent Inc.; Castonguay 1610 No. 2H-2X Well; SW1/4 NW1/4 NE1/4 NW1/4 (SL) of 02-16N-10W; 786 barrels oil per day, 1,841,000 cu-ft gas per day; TD 19,609.

Newfield Exploration Mid-Continent Inc.; Castonguay 1610 No. 3H-2X Well; SW1/4 NW1/4 NE1/4 NW1/4 (SL) of 02-16N-10W; 1,216 barrels oil per day, 3,142,000 cu-ft gas per day; TD 19,479.

Newfield Exploration Mid-Continent Inc.; Castonguay 1610 No. 5H-2X Well; NE1/4 NW1/4 NW1/4 NE1/4 (SL) of 02-16N-10W; 1,192 barrels oil per day, 2,799,000 cu-ft gas per day; TD 19,500.

Newfield Exploration Mid-Continent Inc.; Castonguay 1610 No. 6H-2X Well; NE1/4 NW1/4 NW1/4 NE1/4 (SL) of 02-16N-10W; 1,421 barrels oil per day, 3,003,000 cu-ft gas per day; TD 19,420.

Newfield Exploration Mid-Continent Inc.; Castonguay 1610 No. 7H-2X Well; NE1/4 NW1/4 NW1/4 NE1/4 (SL) of 02-16N-10W; 939 barrels oil per day, 2,105,000 cu-ft gas per day; TD 19,638.

Newfield Exploration Mid-Continent Inc.; Castonguay 1610 No. 8H-2X Well; NE1/4 NW1/4 NE1/4 NE1/4 (SL) of 02-16N-10W; 1,136 barrels oil per day, 2,126,000 cu-ft gas per day; TD 19,318.

Newfield Exploration Mid-Continent Inc.; Castonguay 1610 No. 9H-2X Well; NE1/4 NW1/4 NE1/4 NE1/4 (SL) of 02-16N-10W; 732 barrels oil per day, 1,509,000 cu-ft gas per day; TD 19,475.