I have 2 wells in Jim Creek and 1 in Little knife. My question is what amount of oil per month would make a well 1.GREAT 2.GOOD 3. FAIR 4. POOR. Thanks I am so new to this oil stuff, I don't have any idea if my wells are good. All $ are in suspence ,because of a death issue.
Have you received a division order?
We have a division order on one well in my deceased fathers name. The other two wells are in suspence waiting our Attorneys action. My question is still unanswered. What is a good producing Well ? These wells are in North Dakota
It is all relative but i will do my best. It is sometimes hard to judge because some operators restrict the flow rates of the wells more than others with the choke (for example brigham pretty much were operating with no choke which produced a lot of oil in a short amount of time but they experienced some pretty steep decline curves). Also some wells are on a 1280 acre spacing while some are on 640 acre spacing. Some also go on artificial lift (pumps) sooner than others. As for what a great well is...well, the sky is the limit. One of the best horizontal wells in ND is a petro hunt well and in 4 years has produced 1,000,000 bo. To see the production go here:
Other great wells on a 2 section spacing will produce about 80000+ bo in 3 months and 250,000 in 2-ish years. A good well on a 2 section spacing should pay for itself within a year and a half to 2 years or produce ~115,000 in 1 1/2 to 2 years. A fair well is one that will give a 10% rate of return of the course of its lifetime and a poor well will not pay for itself. I have to reiterate that it is hard to compare some wells unless you look at the production over the entire life span of the well, but I hope this is a good starting point. You can also check out the bakken google group at:
http://groups.google.com/group/bakken-shale-discussion/
and type in jim creek or little knife or just look at some of the other fields and check out the production curves. That will give you a good idea
Thank you for your reply. I am brand new to this oil and gas game. I was hoping for a simple answer like .Great 10000 barrels a month, Good 4000 bar, Fair 1000 bars. I am still learning. Fun stuff.
once the production stabilizes, a great well would have close to 12000+ barrels per month (that would be about 4-5 months after initial production). These wells typically will produce around 26000 in the first month but then quickly decline, but the decline curve for each well is different. A well that produces 10000 in the first month may turn out to be better than one that produces 20000 in the first month if you look at the entire life span of the well
Also, if I might ask, when you say "life span of the well", how long are we talking here? What is typical? What is long life? What is a short life for a well? (in the Bakken, of course)
Philip Mollner said:
once the production stabilizes, a great well would have close to 12000+ barrels per month (that would be about 4-5 months after initial production). These wells typically will produce around 26000 in the first month but then quickly decline, but the decline curve for each well is different. A well that produces 10000 in the first month may turn out to be better than one that produces 20000 in the first month if you look at the entire life span of the well
I received a division order before quiet title.after quiet title, my percentage went up, so maybe I'm being paid for the original percentage interest.
James O'Donnell said:
We have a division order on one well in my deceased fathers name. The other two wells are in suspence waiting our Attorneys action. My question is still unanswered. What is a good producing Well ? These wells are in North Dakota
I think whiting or brigham reported that they believe the wells to have a life span of 39 years. I dont know why they didnt just say 40 unless after 40 years the well has to have lots of maintence done because of law or something. However, towards the end of that time, the wells will probably be producing a couple of barrels a day. The other interesting thing is that right now they believe only 1-2% of the oil will be extracted (the bakken contains some 500 billion barrels but only 4-10 billion can be extracted) but if they started using gas injection to keep the pressure in the reservoir higher, that figure could jump by multiples. Also, as oil prices go up, more technologies will be developed to increase the amount of oil that can be captured.
Anyways back to the main point, the well should produce for 20+ years but realize that on each spacing unit of 640 acres or 1280 acres, a total of up to 8 wells can be drilled to completely develop each spacing unit. This will mean over time, they will drill infill wells and so you will start to receive royalties on multiple wells.