Alfalfa: Midstates Petroleum Co. LLC; DK 2512 No. 3H-17 C Well; SE1/4 SW1/4 SE1/4 SE1/4 (SL) of 08-25N-12W; 353 barrels oil per day 1,883 cu-ft gas per day TD 11,548.
Midstates Petroleum Co. LLC; DK 2512 No. 4H-17 D Well; SE1/4 SW1/4 SE1/4 SE1/4 (SL) of 08-25N-12W; 209 barrels oil per day 2,029 cu-ft gas per day TD 11,475.
SandRidge Exploration & Production LLC; Bathurst 2711 No. 2-4H Well; SE1/4 SE1/4 SW1/4 SE1/4 (SL) of 04-27N-11W; 205 barrels oil per day 1,547 cu-ft gas per day TD 9906.
SandRidge Exploration & Production LLC; Bathurst 2711 No. 3-4H Well; SE1/4 SE1/4 SW1/4 SW1/4 (SL) of 04-27N-11W; 194 barrels oil per day 913 cu-ft gas per day TD 9,870.
Annissa, Companies are often forced by contract to drill. Some have contracted for 2 years or more for a drilling rig and if they back out, then they are going to be sued or pay a big penalty. And most of them are backed by hedge funds, investors, or have development agreements that force them to drill a specific number of wells, or in some cases, a lease may require them to drill “continuously” until fully developed. A few are being let out of those kinds of deals but the drilling rig isn’t about to let you walk for nothing as they have no place to go.
Again, they are not only under pressure to continue some cash flow, so they are also completing the wells with the engineering in mind. Today, many completions are multi-well completions where several are drilled and fracked together. This maximizes production. Again, it is all about raising enough money through sales to keep the lights on at HDQ. And I fear a lot of them are not going to be able to do so.
It is not possible to wind down rapidly. And if oil prices jumped to $90 tomorrow, that unwinding process begun will continue until they can ramp back up and even so, I think a lot of “energy banks” and hedge funds who are funding this will be reluctant to shovel money at the drillers like they did in the past.
Also, the drill rig contractors are in danger. If they cannot work, they cannot pay bills so if the rig lays down for more than a few months, it is likely to never rise again under present management. Someone else will own them - probably a hedge fund or energy bank.
This process is going to play out in slow motion and ramp up again in slow motion.
Noticed last weekend when I was up working at the farm outside Cherokee that the Sandridge well sites had their compressors removed, anyone know what they are doing.
Anyone here have an update if SandRidge is paying Royalty payments yet on leases signed in Sept. 2015? Even though they are in bankruptcy they were granted approval to continue royalty payments.