Proposed Well Garvin Sec 33-4N-3W


#1

Hi All - Red Rocks Oil & Gas is proposing a horizontal well in Garvin 33-4N-3W going for the Woodford. Does anyone know about this operator? I am not familiar with them and trying to do some homework. Thinking of participating vs leasing but would like to know about the operator and the potential for the Woodford in this area. Any info would be greatly appreciated. Thanks!! T B


#2

All I know is that Rimrock and Triad are in a fight to see who gets to drill a well to the Woodford in Sections 28 and 21, just north of Section 33. Looks like more than one operator thinks there’s commercial production to be had.


#3

I’ve got rights in Sec 15-3N-3W in Garvin County where Red Rocks Oil & Gas has established a horizontal well from the south side of 22 to the north of 15. I got my third check last week, but there’s a lot more I don’t know about them than I know. These properties were acquired by my grandfather in the 20s or 30s and have been producing various amounts since then. There have been some good wells in section 15 mostly operated by Newfield, and then we got notice of this project by Red Rocks, which I assume must have a sub-leasing agreement with Newfield. I’ve wanted talk to someone there a few times, but the phone at their OK City office is not answered by a person, and I don’t know whose name to key into the answering system. They don’t seem to have a website. I could call the division order administrator or the law office that drafted some documents that were served last year, but I haven’t done that. I would just like to know more about the operation, but I’m not sure what exactly I would ask. The only weird thing is that a couple of the more productive vertical wells have been shut down for a few months, but that doesn’t shock me if drilling is going on below them. So bottom line is I would interested in whatever you find out.


#4

This area of Garvin has been active for a very long time. It is part of the Panther Creek Hart Sand Unit at one level, Golden Trent Hart Sand Unit at another level and various other wells are in other reservoirs. You can look up the wells on the OCC well records site. These are all fairly shallow wells.

http://imaging.occeweb.com/imaging/OGWellRecords.aspx

The Adams 122X15H was drilled by Red Rocks with a surface location in 22 and bottom hole in 15. It was drilled for the Woodford shale which was the original source rock for the shallow horizons. They drilled vertically down to the Woodford and then horizontally under the old fields. Sometimes, they do shut in the producing wells while they frac the new wells. This is to protect the shallow wells.

What kind of questions do you have? I would suggest starting a new topic for this section so we don’t divert the 33-4N-3W folks.


#5

My understanding of the original post was that Tbonne was looking for information on Red Rocks Oil and Gas. My impression is that they are a bit mysterious. I’ll try to frame something in another topic.


#6

Thank you for the replies. My main questions are does anyone have any experience with Red Rocks as an operator? Not a lot of info on them and I am reluctant to participate if I can’t get some background. Also I would like to know if there is any production info available for wells tapped into the Woodford in the nearby areas of 33. Just would like to gauge the potential. Thanks again for the input! TB


#7

Trey- Don’t take this as anything but instructive. The fact that you apparently don’t know that Red Rocks is run by Randy Stalcup, or his experience in the oil patch, suggests that you are a novice when it comes to investing in oil and gas wells.

If you want to develop a good understanding off the risks, “The Prize” by Daniel Yergin is a great history. A shorter read, “The Big Rich” by Bryan Burrough, also gives you a sense of what it is like to run with the big dogs.


#8

Also instructive note of caution-Participating is not for the novice. You need to have a deep understanding of the oil and gas business, deep pockets to lose everything that you would invest in the well if it doesn’t work out, deep pockets for a long time as they will bill you operating expenses for the life of the well that could last for decades, a good oil and gas attorney, a good accountant, a good drilling liability insurance policy, etc.


#9

Thanks for the words of wisdom. I actually have participated in smaller wells before along with my late father but I don’t live in OK so I don’t have eyes and ears on the ground in terms knowing all the operators and players. But yes I do have experience with the risks, ongoing well costs and liability with those smaller deals however, I have only participated with operators that were closely known by my dad. Participating with the bigger operators would be new territory for me so I am treading very cautiously and it would only be for a small interest.


#10

Good, just didn’t want you diving in without knowing the risks. Suggest you do a lot of research on Red Rocks first as they are pretty new on the scene under that name.


#11

Unless you are in the business, participating can be extremely risky. Leasing does not expose you to any of the costs or liabilities that comes with production. Even as an attorney, I would never participate in a well. I prefer cashing and not writing checks.


#12

Thank you Martha for your great knowledge and help in this forum. I did speak with a representative from Red Rocks and while somewhat helpful, he was definitely not excited that I was considering participating which makes me wonder. Final question, any advice on getting information on wells in the surrounding area for the Woodford? Again appreciate your help.


#13

@tbonne you might find this article of interest. This is an article titled So, You Want to Invest in a Natural Gas Well I wrote this about 10 yrs. ago, after having been asked a hundred times, “Should I get into this drilling deal”? This particular link is to geology.com, but this article has appeared in about a dozen household-name publications over the last decade.


#14

That probably is because the Investor Relations/Partners folks at the company will tell you that small working interest owners take up a disproportionate part of their time.


#15

Excellent article. One thing that I would add is that the working owner interest can pass to future generations who may not have the knowledge or the finances to continue to be involved. Also, consider that the bills don’t stop coming until the well is plugged and abandoned -safely- and that can be decades away. Any lawsuits against the operator will also likely also add an working interest owner into the suit. Several of the many reasons that we do not participate.