Don Thank you for you help. If you get some time and could look at the the webpage in my post of 8 hr. ago I would like to know what you thought if you get the time.
Don, You da Man!
You have to look pretty close to see choke size with production figures. Usually they are not there or are left off. However, there is a sort of misleading number usually published with a well’s initial porduction test. Most operators want the wells numbers to look impressive as possible. The industry has been living with the mentality of the “biggest kid on the block” for a long time. So, when you see your well’s test come in with some big numbers and you get your first check and those big numbers are not reflected in the $$$ you got, guess what, they choked it back. It almost always happens. But, the upside is that the operator will take care of the well production to get the absolute most out of it he can. So, you benefit in the long run. If he had let it blow bigtime for as long as it could, what you would have gotten would be about half of what prudent well managment would get you.
Will a well that tested at 200 b.o.d. & 3000 mcf with a 64/64 choke be produced the same as one that tested at 200b.o.d. & 3000 mcf with a 22/64 choke ? How do they set the rate of production ? How does the choke size get determined ?
Both Pic’s from CImarex update 6/27/12
Ron- I read that and everyone has an opinion. Only time will tell whether that opinion forcasting furture events is valid. But, the shale oil drilling horizontally and fracing has really changed the ballgame bigtime. I can only imagine the various places around the world that I have seen shale drilled through or the estimation that a shale layer below a sand body was the source rock for the oil. You start to implant our U.S. shale oil drilling technologies around the world and the “green reveloution” is still quite a ways off. Why is it off? Oil and it’s products will be made available at affordable prices to places in the world that will jump on the chance of economic development for their areas with cheaper energy or their own porduction. A real game changer to be played out over the next 20 to 30 years.
If I was a billionaire looking for some place to start a new business it would be in oil field tools and equipment including drilling rig construction.
Can you imagine how much steel pipe is going to have to be constructed to meet the demand of all shale oil horizontal drilling as this technique spreads around the world? Lots and Lots.
http://www.econbrowser.com/archives/2012/07/natural_gas_liq.html
This is a very informative article about NGL’s.
Ron, I did read that article. I also glanced at the Harvard report that he referenced and it based the production on $70/bbl. I don’t know what that price does to oil drilling in our area but if they quit drilling these plays in the US then supply should shrink fairly quickly due to the depletion curves on these wells. I would also note that 1,959 rigs are working in the US (more than the rest of the world combined) which reflects on Don’s comment about steel pipe and rigs. Can you imagine the infrastructure that will be required to drill all across the world to the extent that we do here. In short, I do believe that crude oil is finite and that it is a mathematical certainty that the amount of oil that can be produced in a single day has a peak. Some of the questions are, what price will it take to meet increased demand and will the price kill an economy that runs on oil.
Lynden Did you by chance read the article I posted here Friday? The two don’t make it look good.
Look what oil co. lawyers make. http://www.businessinsider.com/15-mind-blowing-salaries-pulled-in-b…
My Well Denisty hearing Order has been released and like most things the lawyers do, I am not sure what it means.
Here are to paragarphs that seem to be the most important.
- Relief Granted: The requested increased density well is authorized. The well
is permitted for the Woodford common source of supply underlying Section 30, Township
3 South, Range 3 East, Carter County, Oklahoma, a 640-acre drilling and spacing unit, as
an exception to Order No. 199785.
- Allowable: If well is oil well, a 160-acre allowable. All gas wells on the unit
will share a single-unit gas allowable for said common source of supply. Provided,
however, that any existing wells shall be allowed to produce all of the allowable of which
they are capable, and the well authorized hereby shall be allowed to produce the
remainder of the unit allowable.
Our lease with Cimarex was signed 20th of November, 2009 and runs from June 1, 2010 for three years. It’s called a “paid up” Oil and Gas Lease while I see others with a “Top Lease Option”. Is there a difference between these types of leases?
Should I assume well in sec. 3 testing at 115 bod & 884 mcf , 20/64 choke ,1160 flow tubing press, is good? Bad?
Still new to the meanings of the lingo here. Bear with me, I’ll catch on.
Ron, Foot in mouth? You only pointed out the obvious!
Jo Cimarex has a well in sec. 3 tested at 115 bod & 884 mcf , 20/64 choke ,1160 flow tubing press. I’ll see what else I can find. When does your lease run out ?
Ron, I guess I had a little “foot in mouth” disease when referring to the sender of our offer letter! LOL! Live and learn!
** Top lease : An oil and gas lease which becomes effective only after the expiration (or termination) of an existing lease upon the subject land tract**
Jo, I’m sorry, I thought Ron said that. Well I think we are all on the same page now. Good Luck!
Greetings all! Willing to take a few questions from someone new to the site? Hope so. My sister and I just took over our mother's interests and would appreciate some guidance.
We own mineral rights in Grady County. SW/4, Section 5, 10N, Range 8W minus what appears to be an acre, maybe a building site. Last week a letter arrived from Justin Stamps with Cana Woodford Resources, LLC in Tuttle offering $2,500 per net mineral acre to buy our interest, which is in the third year of a 3 year lease with Cimarex. <br/> After researching our interest and reading posts in this group and the Grady County group I am much less impressed with the offer from than I was initially and not inclined to sell. If the map at the top of this group is accurate, it appears our interests lie either on the edge of the oil production or in the condensate area. However, the "Wet/Dry" map shows us solidly in the "Wet" area. So, I am a bit confused about how potentially productive our interests might be.
Here are my questions:
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Does anyone have experience to share in that corner of Grady County? Any active wells or drilling or permitting underway?
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Anyone have experience with Cana Woodford Resources, LLC? Am I correct the company is less than a year old? Is that a reason not to do business with them? Do they have a connection to Cimarex?
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If we were to sell, what might be a fair per mineral acre amount? (Grady County, SW/4, Section 5, Township 10N, Range 8W.)
4. Are we wise not to sell? If so, what would have to change to make the time “ripe” for sale?
Any insights/guidance anyone can provide will be deeply appreciated.
Jo Go to Grady Co. group and look who started the group. These wells cost around $ 15,000 an acre to drill,some have a pay back of one year or less. Now say you had a well that had a five year payback. Now say they drilled 4 or more wells and you had 1/4 of all that.