I just signed a lease and I don’t even know if the well is producing or if it ever will. The landman said the well is “competed” but they are waiting for a pipeline to be installed or attached. He said as a last resort they will transport the gas by tanker trucks instead of by pipeline. Do oil and gas companies research and complete wells but then never drill? Is there no demand for natural gas right now? Are there a lot of completed wells just sitting around not producing? One of the people in my “pool” signed back in 2010. How do I find out if and when my well will start producing?
A completed well IS a drilled well. There are quite a few wells capable of producing that are not. The demand for natural gas is as high as it ever was and the demand is growing in my opinion but then the supply is also growing and years ago outstripped demand so the price of gas plummeted. Trucking gas would be expensive and I doubt that is going to happen as long as the lessee/operator can maintain the lease through shut in royalty payments which may be as low as $1 per acre per year.
If they take the product out of the ground, they will have to sell it at the current depressed price. Sometimes waiting is the best thing you can do. The federal government just approved an export license for natural gas for a terminal in Louisiana. There are nineteen more applications for natural gas export permits pending. Will they approve them, I don't know. But if they do, we will be in tall cotton.
I checked the other day, and the price of natural gas in Japan was $14.95 as opposed to $4.20 here in the US.
The disaster at Fukoshima was horrible, but it worked in our favor. When they shut down nuclear plants, natural gas is the logical next option.
Hello Kim,
What is the lease name of the well that has been drilled and what is the API# (American Petroleum Industry)?
And what is the Abstract #? I assume this is Live Oak County, Texas. Have patience Kim.
Clint Liles
Clint,
Yes. It is Live Oak County, Texas in the Eagle Ford Shale. The name of the unit is the Matkin Sugarkane Unit No. 1. The API is 4231133607. Where do I find the Abstract #?
the way I found out is www.fracfocus.com. Put in your API number and follow instructions. When you get to the bubble it will tell you "completion date" and chemicals used. It is a neat site!
Kim,
Here is a link to the drilling permit for Matkin SugarKane Well # 1:http://webapps2.rrc.state.tx.us/EWA/drillingPermitDetailAction.do;jsessionid=hJWCRjpT0h7vhYbx0lz5Mdx7GN0p28hvpvJ2sLQQPhRcKWfpJpkP!1166095950?methodToCall=searchByUniversalDocNo&universalDocNo=487290507&rrcActionMan=H4sIAAAAAAAAAM1Ry2rDMBD8mvQo9LAT-7AHE9pzH6E5mBwUWzgC-cFKpi3o47tyKLROz6UXsTs7zM6OouAcZBRcgLhDbKom2HF4brCt-QkW_M2c9TR5yWjMfNDBsPDOZr9RVcGJIWEjH-6PFZUqlS1a5-zQPRrsbfBPs8GPqyxrRyJl0JtwGdvDuNfOEZADmjDjcBhfjMbmQlAB_MZN7ZdphZ1nk0bdv2o3m8UkLebpCNKW5S4VOZxNZwd_tCHpkeCPXshVv-LLDLigW5ZHEj1hOfA8tdkVUyuH4u_y8l85bWHSncFvefwanjjVa14yC6KIEgSPClRRxgzEjsccVBm3hN5q_LcP-AQZ0UehvQIAAA
Your abstract # is 282. The API # is 297-35219 The permit states that the well has unperforated completion??
Clint Liles
Kim F. said:
Clint,
Yes. It is Live Oak County, Texas in the Eagle Ford Shale. The name of the unit is the Matkin Sugarkane Unit No. 1. The API is 4231133607. Where do I find the Abstract #?
the abstract should be on your lease and title. it is part of the survey.
Does anyone know what unperfed completion means?
Thank You everyone. I appreciate our help. I’m new to all of this.
Kim-
Yes, they can shut in the well while they run a pipeline to it. For how long, depends on what the lease says.
We had a well with Petrohawk in Reeves Co. It took 9 months after completion to hook up the gas line and get our first check.