Wanting help in understanding an Oklahoma completion report

I could use some assistance in understanding portions of a completion report. Here's the one of interest;

http://imaging.occeweb.com/OG/Well%20Records/1DD0A38C.pdf

In the 'initial test data' field there's a couple of clarifications I need.

. The box labeled 'Gas MCF/day' has 115. I think that means 115,000 cubic feet per day but would like that confirmed. Also I would like to know how to calculate the approximate sale value of that gas, converting it to whatever measurement is used in the typical Natural Gas prices index value- which appears to be 'mmBTU'.

. The box labeled 'Gas-oil ratio cu ft/bbl' is a mystery to me. What does the 291 in that box mean?

. The box labeled 'Initial shut-in pressure' I'm guessing is the amount of pressure a guage is measuring from within the hole. I would assume that means gas pressure trying to escape the hole is 127 pounds. Is there any implied signifcance to that in terms of the quality of the hole?

. In the 'completion and test data by producing formation' field, in the box 'perforated intervals' the math indicates there was 3664 feet within the production zone perforated. Given theres a requirement to leave space to not breach the section line and the drilling must stop short of it, there's still about 1500 feet of 5280 that was not perforated. I understand some of that is due to the drilling location and curvature of the hole to become horizontal, but only about 1/2. I have 2 questions about that. Why would the other 1/2 not be perforated, and will that unperforated area ever be harvestable?

Thanx for any clarifications you can offer.

Larry

Larry, You are correct about 115,000cf per day. Gas is selling for about \$3.70 per 1000cf. Depending on gas quality it can be +/- market. mmbtu=1000cf the higher the btu the more value.

The ratio means the well is producing 291cf per each bbl of oil.

The pressure is significant in that 127 lbs is not very much pressure and if the well is to continue production it may require pumping or compression to bring up the product.

It takes about 600 ft to make the turn to horizontal and there may be a certain distance from the radius before perforating can begin.

This is from a fellow mineral owners limited knowledge, there are people on the forum who can give you a more complete explanation.

thanx Michael

did a forehead slap on the gas-oil ratio. guess i had an extended senior moment ;' /. (when I was younger i called them mental blocks - but now having a new excuse is nice) Understanding what mmBTU means helps. I have a follow-up question, it will help me read the prices better. The stated price of \$3.70 is the average price or the low price with higher value with higher BTU ratings?

concerning the pressure and pumping. the completion report already indicates it's pumping and most i've seen have. I'd guess you're saying the lower the pressure, the less time it will take to release the back pressure - which is the easiest/fastest harvest. Then as that pressure falls what would be available would be slower and less quantity. There are charts indicating that initial production decrease curve. So, an initial low pressure would indicate an expectation of a higher rate of decreased production. This curve would level out when the pressure reaches zero. Is this right?

Larry, I use this site to get up to date energy prices:http://www.bloomberg.com/energy/ As a rule of thumb I deduct about \$2.50 per bbl of oil to cover deductions the pipelines make for variances in gravity, too heavy or too light can result in deducts. The oil we are getting in Stephens County is extra light, actually called condensate.

Usually we can expect a buck or two over market for gas. The posted price is for "dry gas" which is about 1025 btu, we have been getting 1210 btu, called "wet gas" and brings a little premium. Our gas started out 1350 btu and was going for about double market but that only lasted the first few months.

My technical knowledge is such that I have a basic understanding but not really qualified to say much about well pressure. I believe you got it about as close to right as I could. I will say this, my completion report says flowing, 5107 shut in press., 32/64 choke. Initial production was 423 bopd, 6575mcfd. So it would be reasonable to assume well pressure has a direct relation to successful results. On the negative side though we have seen in 10 months of production a rapid decline to 120bopd and 4000mcfd. Still a very good well and appears to be leveling out.