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The "learnin' is overwhelmin"
I want novices, dunces, and newbies to be able to ask questions about oil and gas. Nothing is too dumb! I did not know how to spell O-I--L until 3 years ago. I joined this forum and always felt terrible asking dumber questions than others.
It is okay to be brainless, dazed, deficient, dense, dim, doltish, dopey, dull, dumb, dummy*, foolish,futile, gullible, half-baked, half-witted, idiotic, ill-advised, imbecilic, inane, indiscreet,insensate, irrelevant, laughable, ludicrous, meaningless, mindless, moronic, naive,nonsensical, obtuse, out to lunch, pointless, puerile, senseless, shortsighted,simple, simpleminded, slow, sluggish, stolid, stupefied, thick, thick-headed, trivial,unintelligent, unthinking, witless, as long as the questions belong on this forum.
This is your chance, blondes, brunettes and red heads. Laugh while learning, but please have patience. Blonde and Polish jokes are accepted. No profanity, racial slurs or political comments please!
The rules are as follows: The questions can be dumb, dumber and dumbest. The answers have to be smart and polite and written so third graders can understand them if third graders ask them. All acronyms should be explained. I used to get answers whereby I had to sit up all night with an oil and gas dictionary.
- Here are a few things we need to know:
- Def. of leasing: To bring oil and gas reserves to market, minerals are leased by oil companies through a legally binding contract known as a lease. This arrangement between individual mineral owners and oil companies began prior to 1900 and still thrives today. Before exploration can begin, the mineral owner (lessor) and the oil company (lessee) must agree to certain terms regarding the rights, privileges and obligations of the respective parties during the exploration and possible production stages. Although there are numerous other important details, the basic structure of the lease is straightforward: in exchange for an up-front lease bonus payment, plus a royalty percentage of the value of any production, the mineral owner grants the oil company the right to drill for a period of time, known as the primary term. If the term of the oil or gas lease extends beyond the primary term, and a well was not drilled, then the Lessee is required to pay the lessor a delay rental. This delay rental could be $1 or more per acre. In some cases, no drilling occurs and the lease simply expires. The duration of the lease may be extended when drilling or production starts. This enters into the period of time known as the secondary term, which applies for as long as oil and gas is produced in paying quantities.
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Before you go to this discussion, do yourself a favor and open this: http://jay.law.ou.edu/faculty/eking/OilGasPractice/Fall%202012/Oil%...
Here is another: http://www.elexco.com/elexco_ltd_imalandowner.php
Here is a site to familiarize yourself with some of the difficult definitions of this industry. Most of us don't know when we are drilled or frac'd unless we live nearby. The "completion" starts the ball rolling for us and interest peaks. We realize this is really happening to us, (most of us are not in the investment business) but heirs - and we all of a sudden realize how lucky we are to be part of this Eagleford world. The long long nerve wracking wait is almost over. We now get offers to sell and division orders and ratification papers and we don't know what all that means.
If your well has been "completed" please go to www.fracfocus.org. It is fantastic.
A little about pooling: http://oilandgas.uslegal.com/pooling-unitization-and-joint-leases/
This is a great page for info on this mysterious rock. Scroll down for good maps. http://geology.com/articles/eagle-ford/ Oil and Gas Ratio GOR
When oil is brought to surface conditions it is usual for some natural gas to come out of solution. The gas/oil ratio (GOR) is the ratio of the volume of gas that comes out of solution, to the volume of oil at standard conditions. A point to check is whether the volume of oil is measured before or after the gas comes out of solution, since the oil volume will shrink when the gas comes out. In fact, gas dissolution and oil volume shrinkage will happen at many stages during the path of the hydrocarbon stream from reservoir through the wellbore and processing plant to export. For light oils and rich gas condensates the ultimate GOR of export streams is strongly influenced by the efficiency with which the processing plant strips liquids from the gas phase. Reported GORs may be calculated from export volumes which may not be at standard conditions.
The GOR is a dimensionless ratio (volume pr volume) in metric units, but in field units, it is usually measured in cubic feet of gas per barrel of oil or condensate. In the States of Texas and Pennsylvania, the statutory definition of a gas well is one where the GOR is greater than 100,000 ft 3/bbl or 100 Mcf/bbl.
more brain exercise: http://gswindell.com/sp158207.pdf H2S:
Hydrogen sulfide is found in large amounts in natural gas and petroleum. Any worker involved in extracting gas and petroleum from the ground, or in storing, transporting or processing gas is at risk from exposure to H2S Hydrogen sulfide exists in solution in crude oil, and workers are exposed when the gas begins to "pass off" as it reaches the surface or comes into contact with air. This can occur at any point, including all stages of the refining operation, and it is accelerated by heat or hot weather.
If you are looking for production numbers (how much oil and gas is being produced from your well) AFTER completion of fracking, and approximately 2 to 3 months have passed, you can probably find it here. http://webapps.rrc.state.tx.us/PR/publicQueriesMainAction.
P-12 is a bit more complicated. Remember this is what the opeartor/ your oil co. must file with the state of Texas in order for you be included in the pool. You sign the P-12 after this is reported.
POOLED TRACTS: File Form P-12 with the certified plat for each pooled unit. This means that you are of of many in a greater area being drilled / frac'ed. For example: I own 160 acres in a pool of 399 being drilled. You can search using your lease number. For major operators with lots of wells (e.g. CHK), I find it best download the production file to EXCEL and then look at it on my own time (so that you don't get kicked off the Tx RRC site for too many inquiries over given time frame). This way you can sort the data and more easily manipulate thru the long list of wells. When the production reports are filed by the operator with the Tx RRC, there are numbers associated with "disposition codes" for both oil and gas. e.g. "4" is flaring gas, "2" is gas to pipeline, "3" is gas to processing plant. Another number is gas for lease use (e.g. running compression or pumping equipment).
Volumes are broken out for each month as needed.
Definitions:
BO Barrels of Oil
BBLS: As in most volume units of English origin, there are several kinds of barrels. To avoid confusion, the "bbl" abbreviation is used to signify a petroleum barrel of 159 liters. I have no idea where the double "b" came from, its sort of like why do we abbreviate a pound as "lb". The "s" represents a plural, ie, 1 bbl, 2 bbls, etc.
MBO = thousand BO
MMBO = Million BOMCF = thousand cubic feet MMCF = Million cubic feet BCF = Billion cubic ft
LOE = lease operating expenses
NGL = natural gas liquids EUR =
EUR and URR Estimated ultimate recovery vs ultimate recoverable reserves.
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D.O.'s Division Orders Sour Gas: Sour gas has to be taken to a special pipeline that is dedicated to take sour gas. This takes the gas to a processing plant where the sulfur and any NGL's - Natural Gas Liquids - are stripped out (for a fee) before the residual and now clean gas goes to a "clean gas" pipeline. All these processing and transportation fees will be netted out from the gross value of the product.
WTI: West Texas Intermediate crude oil. WTI crude is deemed to be traded at Cushing, Oklahoma.
LLS: Light Louisiana Sweet. A US crude oil.There are 55 gallons in a drum and 42 gallons (1 U.S. gallon = 3.78541178 liters) in a barrel (i.e., 1 barrel = 158.9872948 liters).Here is another great glossary: http://www.platts.com/Glossary.
Cookie,
I don't understand some of the oil/gas terminology that I read also. It is mind boggling. Hang in there. I've been in this business for years and I'm still in the 'Learning Mode'. These links might help you on understanding some of the words and phrases.
http://www.mpgpetroleum.com/glossary.html#C
http://www.glossary.oilfield.slb.com/en/Terms.aspx?LookIn=term%20name&filter=AFE
Clint Liles
My own question: I have friends who own oil wells. They want to go to Texas to visit the wells and take photos. Is that allowed and or is it dangerous due to gases in the air in the Eagleford fields? I think it may be but would love expert's advice. Thanks
Thank you, Clint.
Clint Liles said:
Cookie,
I don't understand some of the oil/gas terminology that I read also. It is mind boggling. Hang in there. I've been in this business for years and I'm still in the 'Learning Mode'. These links might help you on understanding some of the words and phrases.
http://www.mpgpetroleum.com/glossary.html#C
http://www.glossary.oilfield.slb.com/en/Terms.aspx?LookIn=term%20na...
Clint Liles
Cookie. I don't know how close your friends will be able to get but unconfined gas shouldn't be a problem. To be trebly safe pick a day when there is any breeze at all. I was working to restore a school once that had some tornado damage and I found a pipe union on the roof that lacked more than 1/8 of an inch of being tight. It had probably been leaking for 30 years and nobody noticed. If you ever see a anhydrous ammonia trailer overturned [looks like a propane tank] keep driving and do not stop. There are things on our hiways that make oil and gas look ridiculously safe.
Cookie Gartner said:
My own question: I have friends who own oil wells. They want to go to Texas to visit the wells and take photos. Is that allowed and or is it dangerous due to gases in the air in the Eagleford fields? I think it may be but would love expert's advice. Thanks
thank you. good advice
r w kennedy said:
Cookie. I don't know how close your friends will be able to get but unconfined gas shouldn't be a problem. To be trebly safe pick a day when there is any breeze at all. I was working to restore a school once that had some tornado damage and I found a pipe union on the roof that lacked more than 1/8 of an inch of being tight. It had probably been leaking for 30 years and nobody noticed. If you ever see a anhydrous ammonia trailer overturned [looks like a propane tank] keep driving and do not stop. There are things on our hiways that make oil and gas look ridiculously safe.
Cookie Gartner said:My own question: I have friends who own oil wells. They want to go to Texas to visit the wells and take photos. Is that allowed and or is it dangerous due to gases in the air in the Eagleford fields? I think it may be but would love expert's advice. Thanks
First, buy a camera with a zoom feature. I bought a Sony video camera that takes still pictures also. If you can see the well from a public road Zoom in and shoot your pictures and it's all good. If you have access to the property, or if you own it let's say, I would at least have a conversation with the operator and perhaps meet the pumper or guager and discuss with them what your intentions are. Or even set it up where you can get a tour. We have H2S signs on our gates and a windsock on the tanks which is a good indication it is there and was flaring the gas but it does vent out of the crude storage tanks. I had a pretty good discussion with our operator and we resumed our normal activities on the property and pass by the well site often. I don't recommend camping out there with an open fire or shooting fireworks off of the tank batteries to celebrate your first check or Independence Day. Treat it like a gas pump and if something doesn't look right or smell right leave. Just like the ammonia truck, don't stop. If you don't have access then you are at the mercy of the landowner, just driving up to the well and posing for pictures and having a picnic is trespassing and could be criminal trespass in The State of Texas. Just because the gates open doesn't mean it's cool. I will add this, the bigger the operation and when Big Oil is involved and they are in an active state whether drilling or completion there is going to be a gate guard there and you will be turned around if you don't have a pass. Most leases require that the gates are to be locked after you enter or leave whether it is fluid disposal or pumpers and the landowner as well. This is usually overlooked ( me) and some wells actually are located right off of county roads with no fences or any barriers. Dewitt and Gonzales County are having problems with theft and some sites now have taken extreme security measures. I wouldn't want tourists roaming around on my property. I would venture to say talking to the landowner may not be too painful unless there is animosity there already. You saw the rattlesnakes, it wouldn't be smart to crawl under the fence for a picture. Just kidding.
Cookie Gartner said:
thank you. good advice
r w kennedy said:Cookie. I don't know how close your friends will be able to get but unconfined gas shouldn't be a problem. To be trebly safe pick a day when there is any breeze at all. I was working to restore a school once that had some tornado damage and I found a pipe union on the roof that lacked more than 1/8 of an inch of being tight. It had probably been leaking for 30 years and nobody noticed. If you ever see a anhydrous ammonia trailer overturned [looks like a propane tank] keep driving and do not stop. There are things on our hiways that make oil and gas look ridiculously safe.
Cookie Gartner said:My own question: I have friends who own oil wells. They want to go to Texas to visit the wells and take photos. Is that allowed and or is it dangerous due to gases in the air in the Eagleford fields? I think it may be but would love expert's advice. Thanks
Great stuff, thank you!
Cookie,
My first (of many) dumb questions. You said that it is typical for gas to come out when oil is drilled. Our wells are not specified as gas or oil and have both on the production reports. Will they eventually make a determination as to what type of wells they are? Is this based on the magnitude of the gas or oil? Thanks for offering a place for the oil & gas dummies to ask questions.
Thanks,
Misty
cookie,
My wife and I GO TO TEXAS,OK. KANSAS and we take pictures all the time.It's like a giant Easter egg hunt and lots of fun. But, we do own minerals to the wells, so we can go on property. If there is a posted sign for poison gas present, we dont go on.
Cookie Gartner said:
My own question: I have friends who own oil wells. They want to go to Texas to visit the wells and take photos. Is that allowed and or is it dangerous due to gases in the air in the Eagleford fields? I think it may be but would love expert's advice. Thanks
Thank you. We are mineral owners in NW La Salle. the land owner is a school chum of hubby's so we re going to make the drive from Cali to Cotulla. Hope it's not too hot yet.
you are very welcome. I don't think they will determine that. Most are both. The gas is usually converted to barrels as the oil is sold. Correct me if I am wrong, but oil has gas but gas wells do not have oil. That is he way it would be either oil or gas but not the other way around. You have to have gas in the wells in order to move oil. I am not an expert, just read the comments on other forums. Thank you for posting.
Misty D'Amico said:
Cookie,
My first (of many) dumb questions. You said that it is typical for gas to come out when oil is drilled. Our wells are not specified as gas or oil and have both on the production reports. Will they eventually make a determination as to what type of wells they are? Is this based on the magnitude of the gas or oil? Thanks for offering a place for the oil & gas dummies to ask questions.
Thanks,
Misty
Correction on several issues here.
Gas & oil are often both produced from the same well. Oil may be "black oil" or condensate. Plus gas may have NGL's that are stripped out at gas processing plant. Some oil wells have VERY low gas to oil ratios (GOR) - this is common in the Zavala County area plus along trend in the Wilson County area. Little to no gas is an issue as to reservoir energy, but oil can still be produced using artificial lift (normally pumping units) - which is a common Eagle Ford application as pressures drop in these wells.
Chesapeake is getting IP's from the Eagle Ford of up to 700-800 BOPD with very little associated gas.
Determination of a well being a "gas well" or "oil well" is based on IP test volumes of gas vs liquids. Tx RRC has parameters for this designation (which is important as to pro ration and other issues)
Gas is not converted to oil as the oil is sold. Gas is either flared or goes to gas pipeline.
Cookie said:
you are very welcome. I don't think they will determine that. Most are both. The gas is usually converted to barrels as the oil is sold. Correct me if I am wrong, but oil has gas but gas wells do not have oil. That is he way it would be either oil or gas but not the other way around. You have to have gas in the wells in order to move oil. I am not an expert, just read the comments on other forums. Thank you for posting.
Misty D'Amico said:Cookie,
My first (of many) dumb questions. You said that it is typical for gas to come out when oil is drilled. Our wells are not specified as gas or oil and have both on the production reports. Will they eventually make a determination as to what type of wells they are? Is this based on the magnitude of the gas or oil? Thanks for offering a place for the oil & gas dummies to ask questions.
Thanks,
Misty
I did not mean for gas to be converted to oil. Sorry, what I meant was that gas can be measured in barrels by converting it to barrels. Only the measurement, of course.
Przzz said:
Correction on several issues here.
Gas & oil are often both produced from the same well. Oil may be "black oil" or condensate. Plus gas may have NGL's that are stripped out at gas processing plant. Some oil wells have VERY low gas to oil ratios (GOR) - this is common in the Zavala County area plus along trend in the Wilson County area. Little to no gas is an issue as to reservoir energy, but oil can still be produced using artificial lift (normally pumping units) - which is a common Eagle Ford application as pressures drop in these wells.
Chesapeake is getting IP's from the Eagle Ford of up to 700-800 BOPD with very little associated gas.
Determination of a well being a "gas well" or "oil well" is based on IP test volumes of gas vs liquids. Tx RRC has parameters for this designation (which is important as to pro ration and other issues)
Gas is not converted to oil as the oil is sold. Gas is either flared or goes to gas pipeline.
Cookie said:
you are very welcome. I don't think they will determine that. Most are both. The gas is usually converted to barrels as the oil is sold. Correct me if I am wrong, but oil has gas but gas wells do not have oil. That is he way it would be either oil or gas but not the other way around. You have to have gas in the wells in order to move oil. I am not an expert, just read the comments on other forums. Thank you for posting.
Misty D'Amico said:Cookie,
My first (of many) dumb questions. You said that it is typical for gas to come out when oil is drilled. Our wells are not specified as gas or oil and have both on the production reports. Will they eventually make a determination as to what type of wells they are? Is this based on the magnitude of the gas or oil? Thanks for offering a place for the oil & gas dummies to ask questions.
Thanks,
Misty
Misty, do you know what NGL's are and BOPD? If you don't please let me know. Most newbies don't. Thanks
Cookie Gartner said:
I did not mean for gas to be converted to oil. Sorry, what I meant was that gas can be measured in barrels by converting it to barrels. Only the measurement, of course.
Przzz said:Correction on several issues here.
Gas & oil are often both produced from the same well. Oil may be "black oil" or condensate. Plus gas may have NGL's that are stripped out at gas processing plant. Some oil wells have VERY low gas to oil ratios (GOR) - this is common in the Zavala County area plus along trend in the Wilson County area. Little to no gas is an issue as to reservoir energy, but oil can still be produced using artificial lift (normally pumping units) - which is a common Eagle Ford application as pressures drop in these wells.
Chesapeake is getting IP's from the Eagle Ford of up to 700-800 BOPD with very little associated gas.
Determination of a well being a "gas well" or "oil well" is based on IP test volumes of gas vs liquids. Tx RRC has parameters for this designation (which is important as to pro ration and other issues)
Gas is not converted to oil as the oil is sold. Gas is either flared or goes to gas pipeline.
Cookie said:
you are very welcome. I don't think they will determine that. Most are both. The gas is usually converted to barrels as the oil is sold. Correct me if I am wrong, but oil has gas but gas wells do not have oil. That is he way it would be either oil or gas but not the other way around. You have to have gas in the wells in order to move oil. I am not an expert, just read the comments on other forums. Thank you for posting.
Misty D'Amico said:Cookie,
My first (of many) dumb questions. You said that it is typical for gas to come out when oil is drilled. Our wells are not specified as gas or oil and have both on the production reports. Will they eventually make a determination as to what type of wells they are? Is this based on the magnitude of the gas or oil? Thanks for offering a place for the oil & gas dummies to ask questions.
Thanks,
Misty
Caution on the MCF to BO conversion (normally 6 MCF to 1 BO). This creates a "BOE" (barrel of oil equivalent) that should not be used to "value" the product. Oil is running (3/27) around $96 per BO. A "BOE" is running about $24 per BOE (today's gas price is around $4 per MCF).
Cookie Gartner said:
I did not mean for gas to be converted to oil. Sorry, what I meant was that gas can be measured in barrels by converting it to barrels. Only the measurement, of course.
Przzz said:Correction on several issues here.
Gas & oil are often both produced from the same well. Oil may be "black oil" or condensate. Plus gas may have NGL's that are stripped out at gas processing plant. Some oil wells have VERY low gas to oil ratios (GOR) - this is common in the Zavala County area plus along trend in the Wilson County area. Little to no gas is an issue as to reservoir energy, but oil can still be produced using artificial lift (normally pumping units) - which is a common Eagle Ford application as pressures drop in these wells.
Chesapeake is getting IP's from the Eagle Ford of up to 700-800 BOPD with very little associated gas.
Determination of a well being a "gas well" or "oil well" is based on IP test volumes of gas vs liquids. Tx RRC has parameters for this designation (which is important as to pro ration and other issues)
Gas is not converted to oil as the oil is sold. Gas is either flared or goes to gas pipeline.
Cookie said:
you are very welcome. I don't think they will determine that. Most are both. The gas is usually converted to barrels as the oil is sold. Correct me if I am wrong, but oil has gas but gas wells do not have oil. That is he way it would be either oil or gas but not the other way around. You have to have gas in the wells in order to move oil. I am not an expert, just read the comments on other forums. Thank you for posting.
Misty D'Amico said:Cookie,
My first (of many) dumb questions. You said that it is typical for gas to come out when oil is drilled. Our wells are not specified as gas or oil and have both on the production reports. Will they eventually make a determination as to what type of wells they are? Is this based on the magnitude of the gas or oil? Thanks for offering a place for the oil & gas dummies to ask questions.
Thanks,
Misty
I did not know that there was so much difference in price. We were frac'ed in January, sold Feb 7th so I do not have a report yet. Thank you for your input. All I know is the IP was 670 tested. A good well "they" said.
Przzz said:
Caution on the MCF to BO conversion (normally 6 MCF to 1 BO). This creates a "BOE" (barrel of oil equivalent) that should not be used to "value" the product. Oil is running (3/27) around $96 per BO. A "BOE" is running about $24 per BOE (today's gas price is around $4 per MCF).
Cookie Gartner said:I did not mean for gas to be converted to oil. Sorry, what I meant was that gas can be measured in barrels by converting it to barrels. Only the measurement, of course.
Przzz said:Correction on several issues here.
Gas & oil are often both produced from the same well. Oil may be "black oil" or condensate. Plus gas may have NGL's that are stripped out at gas processing plant. Some oil wells have VERY low gas to oil ratios (GOR) - this is common in the Zavala County area plus along trend in the Wilson County area. Little to no gas is an issue as to reservoir energy, but oil can still be produced using artificial lift (normally pumping units) - which is a common Eagle Ford application as pressures drop in these wells.
Chesapeake is getting IP's from the Eagle Ford of up to 700-800 BOPD with very little associated gas.
Determination of a well being a "gas well" or "oil well" is based on IP test volumes of gas vs liquids. Tx RRC has parameters for this designation (which is important as to pro ration and other issues)
Gas is not converted to oil as the oil is sold. Gas is either flared or goes to gas pipeline.
Cookie said:
you are very welcome. I don't think they will determine that. Most are both. The gas is usually converted to barrels as the oil is sold. Correct me if I am wrong, but oil has gas but gas wells do not have oil. That is he way it would be either oil or gas but not the other way around. You have to have gas in the wells in order to move oil. I am not an expert, just read the comments on other forums. Thank you for posting.
Misty D'Amico said:Cookie,
My first (of many) dumb questions. You said that it is typical for gas to come out when oil is drilled. Our wells are not specified as gas or oil and have both on the production reports. Will they eventually make a determination as to what type of wells they are? Is this based on the magnitude of the gas or oil? Thanks for offering a place for the oil & gas dummies to ask questions.
Thanks,
Misty
Good to watch the daily postings for O&G prices - they are availalbe everywhere. This is why I advocate royalty owners to plot all their royalty check data so as to be "up" on what is happening as well as trends in pricing and expenses.
Gas has actually gotten better recently - was in the $3 per MCF range not that long ago.
NGL's - although a liquid - are only running in the $25-$30 per bbl range due to oversupply of main NGL products (due to major gas production). Used to be in $70-$80 range 1bout 18 months ago.
Cookie Gartner said:
I did not know that there was so much difference in price. We were frac'ed in January, sold Feb 7th so I do not have a report yet. Thank you for your input. All I know is the IP was 670 tested. A good well "they" said.
Przzz said:Caution on the MCF to BO conversion (normally 6 MCF to 1 BO). This creates a "BOE" (barrel of oil equivalent) that should not be used to "value" the product. Oil is running (3/27) around $96 per BO. A "BOE" is running about $24 per BOE (today's gas price is around $4 per MCF).
Cookie Gartner said:I did not mean for gas to be converted to oil. Sorry, what I meant was that gas can be measured in barrels by converting it to barrels. Only the measurement, of course.
Przzz said:Correction on several issues here.
Gas & oil are often both produced from the same well. Oil may be "black oil" or condensate. Plus gas may have NGL's that are stripped out at gas processing plant. Some oil wells have VERY low gas to oil ratios (GOR) - this is common in the Zavala County area plus along trend in the Wilson County area. Little to no gas is an issue as to reservoir energy, but oil can still be produced using artificial lift (normally pumping units) - which is a common Eagle Ford application as pressures drop in these wells.
Chesapeake is getting IP's from the Eagle Ford of up to 700-800 BOPD with very little associated gas.
Determination of a well being a "gas well" or "oil well" is based on IP test volumes of gas vs liquids. Tx RRC has parameters for this designation (which is important as to pro ration and other issues)
Gas is not converted to oil as the oil is sold. Gas is either flared or goes to gas pipeline.
Cookie said:
you are very welcome. I don't think they will determine that. Most are both. The gas is usually converted to barrels as the oil is sold. Correct me if I am wrong, but oil has gas but gas wells do not have oil. That is he way it would be either oil or gas but not the other way around. You have to have gas in the wells in order to move oil. I am not an expert, just read the comments on other forums. Thank you for posting.
Misty D'Amico said:Cookie,
My first (of many) dumb questions. You said that it is typical for gas to come out when oil is drilled. Our wells are not specified as gas or oil and have both on the production reports. Will they eventually make a determination as to what type of wells they are? Is this based on the magnitude of the gas or oil? Thanks for offering a place for the oil & gas dummies to ask questions.
Thanks,
Misty
I will. I have a spread sheet but need to have some more patience for DO"s and checks. It's been 3 long years!
Thank you much for your replies.
Cookie
Przzz said:
Good to watch the daily postings for O&G prices - they are availalbe everywhere. This is why I advocate royalty owners to plot all their royalty check data so as to be "up" on what is happening as well as trends in pricing and expenses.
Gas has actually gotten better recently - was in the $3 per MCF range not that long ago.
NGL's - although a liquid - are only running in the $25-$30 per bbl range due to oversupply of main NGL products (due to major gas production). Used to be in $70-$80 range 1bout 18 months ago.
Cookie Gartner said:I did not know that there was so much difference in price. We were frac'ed in January, sold Feb 7th so I do not have a report yet. Thank you for your input. All I know is the IP was 670 tested. A good well "they" said.
Przzz said:Caution on the MCF to BO conversion (normally 6 MCF to 1 BO). This creates a "BOE" (barrel of oil equivalent) that should not be used to "value" the product. Oil is running (3/27) around $96 per BO. A "BOE" is running about $24 per BOE (today's gas price is around $4 per MCF).
Cookie Gartner said:I did not mean for gas to be converted to oil. Sorry, what I meant was that gas can be measured in barrels by converting it to barrels. Only the measurement, of course.
Przzz said:Correction on several issues here.
Gas & oil are often both produced from the same well. Oil may be "black oil" or condensate. Plus gas may have NGL's that are stripped out at gas processing plant. Some oil wells have VERY low gas to oil ratios (GOR) - this is common in the Zavala County area plus along trend in the Wilson County area. Little to no gas is an issue as to reservoir energy, but oil can still be produced using artificial lift (normally pumping units) - which is a common Eagle Ford application as pressures drop in these wells.
Chesapeake is getting IP's from the Eagle Ford of up to 700-800 BOPD with very little associated gas.
Determination of a well being a "gas well" or "oil well" is based on IP test volumes of gas vs liquids. Tx RRC has parameters for this designation (which is important as to pro ration and other issues)
Gas is not converted to oil as the oil is sold. Gas is either flared or goes to gas pipeline.
Cookie said:
you are very welcome. I don't think they will determine that. Most are both. The gas is usually converted to barrels as the oil is sold. Correct me if I am wrong, but oil has gas but gas wells do not have oil. That is he way it would be either oil or gas but not the other way around. You have to have gas in the wells in order to move oil. I am not an expert, just read the comments on other forums. Thank you for posting.
Misty D'Amico said:Cookie,
My first (of many) dumb questions. You said that it is typical for gas to come out when oil is drilled. Our wells are not specified as gas or oil and have both on the production reports. Will they eventually make a determination as to what type of wells they are? Is this based on the magnitude of the gas or oil? Thanks for offering a place for the oil & gas dummies to ask questions.
Thanks,
Misty