My wife owns mineral rights in Sec. 10-T14N-R7W of Canadian County. We are now receiving requests from landmen to lease these rights. We live in Austin and we’re investigating whether anyone else has mineral rights in this area and any other pertinent info. Thanks
The operators do not frac the whole verticle column. If they can they pick an area in the verticle volume that is more indicative of oil saturation than anything above and below the area. What area is fraced (fraced is the correct term, not fracked as some reporter who could not spell coined the phrase and it stuck) along the horizontal borehole is maybe 50 feet in a radius around the horizontal borehole. It could be more or less depending on the hardness of the shale at that particular point. They don’t intend to break up the whole verticle column since that would raise the risk of the frac process starting to contominate possible fresh water sands. They want a very controled process with no chance of the fracturing along with the chemicals to escape into other formations.
It has been a long time since I have been associated with the process but I don’t thik the rules have changed.
I’m not sure that any multiple boreholes in a 640 or 1280 have been drilled in Grady County. What I have seen is the possibility of 6 boreholes in a unit and I believe they will be evenly placed across the unit running generally north-south, canted somewhat westerly because of the strike of the Woodford shale. Whether they would have some higher or lower to each other, I don’t know.
Evenly spaced East-West across a unit is six wells would be a spacing of about 880 feet apart on the boreholes. Assuming the frac only went 50 feet in a radius from each borehole, that would leave undrained areas between each bore hole and could possibly have more bore holes between the six that were initially drilled in later years. Speculation I know, but physically possible.
Do you have a link to the XTO Energy report?
Here is the link
http://imaging.occeweb.com/IMAGING/OAP.ASPX?casenum=201203297&c…
Robert, If the minerals are recorded in your wife’s name and Canadian County has your correct address you should be receiving copies of some of the applications Newfield has made to the OCC. I don’t want to tell you a bunch of stuff you already know so please post any questions you have and I’m sure someone on the forum can help you.
Thanks-What XTO is claiming is 129 BCF (I don’t know whether they have combined to oil recover into gas or not) for a 640 unit. I had seen a number over a year ago claiming 200 BCF per 640. Those are mighty high numbers and may not prove out twenty or thirty years from now, but companies beat their chests about how much potential there is in a project.
The 3.9 BCF per well is probably pretty close. I used 4 BCF per well in my own calculations on my small interest in Grady. Given at this time operators are considering six wells per 640 that would only drain 24 BCF of the gas in place. There would be a remainder left in the unfraced portions of the 640 between bore holes. More advanced technology as the industy develops it would put some of the remaining gas to be produced later on.
You see they are claiming 125 BCF of unrecoverable.
Robert, Looks like you are in a very good spot. Newfield plans to drill a multi-unit horizontal well in sec. 3 & 10-14N/7W. My research was quick but for right now I would say don’t take any less than $1200-3/16, you can probably get more. Here is a link to Newfields application. If you want I can do some more research tonight. Don’t rush into anything you’ve got time, this is a big project and they have a lot of applications before the OCC.
Thanks Michael, we’re trying to educate ourselves to the opportunity.
Richard Pruitt, I finally got the statement from devon for the month of April. The BTU varied by wells and of course so did the price of the gas. BTU’S of 1.31 to 1.417. Gas prices for April from 2.552 to 2.767. But the money maker was the condensate at 100.23 which was down from last month…but the check overall was 1/3 more than the first check which was for February production…The check I got last month was for 3 months production( dec,jan,mar) on 6 wells. . I am not good with figures and that is why I just look at the check amount. And thank my late granddad every day for this little windfall. Cheryl
Robert-If you took that working interest, and I do not recommend small mainera ownersl taking the working interest in a well, no matter how small, you would start receiving your share of the daily sales of the well for the start. However, there are many other costs you will have to pony up for 9hook up charges, tank batteries, pipeline buiding charges to new a very few,. The mose infuriating one would be the “overhead” charged to the well. There is no way in a blue moon that you could find out an enumeration of these charges and your objecting to them, and you would, would delay monthly payments to your account.
Take the lease, it is all profit at that point.
Cheryl thankyou for the figures. It would be interesting if someone in your area had Continental as a operator and we could compare payment prices. We have a very small percent on a well in Okla. County been producing since 1991 and the gas prices for April had fallen to $2 for a BTU of 141. I can not wait till we receive a payment of our well in Grady County, which will probably be around Thanksgiving. I wish Continental would start driling the increase in density wells but they are concentrating very heavily on drilling the lease acreage before leases expire. I thank God everyday for the blessing of a well on royalities left bye my Granddad. Our proceeds will be used on medical bills as my wife has just started battling breast cancer.
Robert, my wife apparently only has a leasehold interest on a very small portion, .075 of an acre. It’s in Sec 10-14N-7W Canadian County. They are going to pool 640 acres and so our working interest would only be .000117%. That sounds like one ten thousandth of a percentage. If we choose to participate in the well we’d invest $1300 of the $11m project. Would this mean that the profits from the project would have to reach 13m before we would make our investment back? It sounds like quite a long shot.
Steved, in 16N/10W there is some activity in sections 15,16,21 & 22. In 29-18N/6W there are several verticle wells, the most recent completed in April 2011 by Chaparral Energy
Steved, there is some good horizontal Woodford activity in your area (which is east of Watonga). The Petty 1-17H in 17-16N-10W is the most important. It was a great well, coming in at 373 bl/day and 5686 MCF/d. This is immediately adjacent to your section to the Southeast. Also, there is a very historic well with a 2 mile lateral - Continental’s Toms 1-21XH in 16N-10W. There is no official completion report yet, but it was spudded late last year.
There’s also a well farther away in 16N-10W, the Fry 1H-34.
There is no intent to drill on your section, but just be patient. There were dozens of oil and gas leases signed on your section 7 in the year 2010.
Our family has mineral rights on 80 acres in Blaine County, Section 7-16N - 10W, as well as some in Kingfisher County, Section 29 -18N- 6W. Is anyone aware of any existing or planned activity in these areas?
Something to think about. http://www.huffingtonpost.com/raymond-j-learsy/harvards-amazing-stu…
Don Thank you again. Also I guess choke size and pressure are things we need to know when we are trying to get information on production. If we post it if we can get it might be of help.
Ron-Usually the operators have information concerning the formation that is evaluated by engineers to determine an optimum production rate. Subsurface pressure is all important and a higher pressure well can be produced at a greater rate than a lower pressured well.
Your example of the two wells with the same output had one well on the 64/64 (I inch diameter I believe) as wide open as they could get it. The other well at a 22/64 was only open about a third as much and produced as much as the other well. The 22/64 was the higher pressure well. The one that was tested with a 64/64 choke will probably be cut back to considerably less that the rate shown to preserve formation pressue and the life of the well.
These are items that are monitored 24/7 365 days a year and changed as needed (i.e. choke size) to maintain subsurface reservoir pressure. Wells that are produced too fast (choke open too wide) for the reservoir integery will damage the reservoir and prevent the operator from getting all the product he can from the reservoir. He may have to undertake an expensive repair job on the well to get the rest of the product out.