George – here’s my 2 cents: 1 ‘Mcf’ = 1,000 cubic feet (cf), a volume measurement. 1 ‘MMBtu’ = 1,000,000 Btu, an energy quantity measurement. Sometimes ‘Mcf’ and ‘MMBtu’ are used interchangeably, which is only true if the heating value of the gas equals 1,000 Btu per cf. Most ‘interstate pipeline quality’ gas delivered to your house has a heating value of 1000-1040 Btu per cf.
The Btu content of wellhead (casinghead) gas may be much higher than 1000 Btu per cf, say 1200 Btu/cf for discussion purposes here. QUESTION: If the price of gas is quoted at $3.74 per MMBtu, what would the price per Mcf of a 1200 Btu/cf casinghead gas be?
Let’s do the calculation in two steps:
(1200 Btu/cf x 1000 cf/Mcf) divided by 1,000,000 Btu/MMBtu = 1.2 MMBtu per Mcf
1.2 MMBtu per Mcf x $3.74 per MMBtu = $4.888 per Mcf
FYI, Energen just announced an excellent well NW of Pecos, the EJ Brady-1. It potentialed a gassy 1,798 boepd of which 491 bbls was oil. The well is in Sect 56.
Hey Stephen – great find. Energen’s Brady 56-1 #1H, 14.5 miles NW of Pecos, T&P BLK 55, T-4S, SEC 56, A-4743.
“Reeves County covers a lot of area, and more work is needed to understand the full Wolfcamp potential there. We currently are drilling 2 Wolfcamp test wells in Reeves County and plan to drill another 5 wells this year. Based on 80-acre spacing and 4,400-foot laterals, success in just one bench of the Wolfcamp in Reeves County could mean almost 700 potential drilling locations on our 56,000 net acres.” ~~ CEO James McManus, 7-31-13
Actually, three wells are being drilled, located: 15.2 miles SW of Orla (A-3984); 14 miles N of Pecos (A-2480); and 5.8 miles SE of Pecos (A-4654). Later – Buzz
Daniel – using your abstract numbers, I find the locations to be PSL BLK 56 NOT ‘block 56 T-3’ as you describe (which would indicate T&P Ry. Co. BLK, TSP 3). Before we delve further, we should clarify. Later – Buzz
Is Clayton Williams doing any drilling? I leased to them, Sec. 26 Blk C-7 PSL, right on the W. edge of Toyah lake. Other companies wells and permits surround me.
From your description, you’ll located south of Orla. If you provide a more complete description (Abstract Number would suffice), I’ll be glad to locate how far from Pecos you are. Your description covers ~44 square miles. Later – Buzz
Daniel – Re: T&P BLK 56, TSP 3, SECs 30, 32, 36, 38. These four sections – clustered together in a checkerboard pattern – are located 11.4 miles SSE of Orla and 26.9 miles NW of Pecos. Later – Buzz
I haven’t posted before, but for awhile I’ve been reading the posts trying to learn, which is easier said than done! I have two leases in Reeves Cty 1) W/2 of Section 103 and E/2 of Section 138, Block 1, H&TC RR Co., and 2) all of Section 13, Block 50, T-9, T&P RR Co. My lease is with Arabella Petroleum, and they obtained two drilling permits for these leases last November. Other than that, I can find absolutely no information. Can anyone please tell me where to look on the TX RRC website to see if there’s been any progress with these leases? I’ve been told Arabella generally doesn’t drill - is there any way to tell if they sold these leases to someone else? Any information would be appreciated. Val
CW recently has had a cash flow problem as far as continuing to fund a rather aggressive drilling program the past few years (e.g., at their peak, they were running 9 rigs in Reeves). That has been alleviated somewhat by the recent sale of 95% of their Andrews County Wolfberry properties. Also, they are in early discussions with a 25% joint venture foreign partner in their Wolfbone play in Reeves County. Currently, they are running 3 horizontal rigs targeting the upper Wolfcamp in Reeves with plans to move to 4 next spring and 5 later next year. They have the possibility of earning 15,000 more southern Reeves acres in the farm-out deal with Chesapeake (now Shell), and intend to do so. In Reeves, they are under mild pressure to drill to hold leases by production (so-called ‘HBP’ drilling). They have quite an extensive gathering system for oil, gas and water in southern Reeves. Also, it should be noted that CW also has extensive properties elsewhere, e.g., in the Eagle Ford of South Texas. Later – Buzz