Thank you, Ron, for providing production information on the Canadian County wells.
Canadian: Devon Energy Production Co. LP; Walking Woman 5-13N-9W No. 6H Well; NE1/4 NE1/4 NW1/4 NE1/4 (BHL) of 05-13N-09W; 321 barrels oil per day, 2,882,000 cu-ft gas per day; TD 17,386.
Thank you, Ron, for the completion information on the Walking Woman No. 6 well.
Hi Folks, FYI - Have a lease offer for $2000.00 per acre bonus, 3 year term, 20% royalty rate. This would be in 32-14N-9W. This seem like there is room to negotiate considering I received 2,500/acre, 3 year term, 20% in 2010 and receiving royalties from a well that has its end point on the property. Please would this seem correct to you all? I always appreciate the kindness and help. Many thanks to all.
Tom, that sounds like a good starting point, but I think you have some room to move up. The section directly below you had nine wells in it, so multiples are highly likely. Go for the lowest bonus and the highest royalty if you can. See if they will give $250 and 1/4. Ask for $500 1/4 first!
I am kind of curious. Are you already getting paid for the Ricker 1-32H? If so, then you are held by production and probably should not have gotten the current offer. It was drilled in 2011 under your lease then. Looks like it is still producing……
M Barnes, the Ricker 1-32H is being paid to me. I understand that the Ricker 32H Unit was scheduled to drill 6 more wells beginning this last Jan 2014 through July 2014, but have not heard any more news. My paper work shows it is HBP, but there is also another company called Louis Dreyfus that HBP on the same land. Is it possible the new company wants to drill into a different depth/formation? The land is held in trust for me, but prefer to say more in private. Thanks, Tom
Friend me and I will walk you through it.
That scenario is possible. It depends upon the wording of your first lease.
With applying the Woodford decline curve we are seeing, that Bessie 5 well will be in the black by $3m the first year. The lower producing Bessie 3 will only be $1m in the red after one year. That is figured on a 1000 BTU rate. Typical Woodford High btu gas prices and selling other products besides oil and gas should help those numbers also.
12-15 month paybacks would be fantastic!
I have working interest and royalty interest in the immediate area. These are excellent wells in the core area. Well costs have been 6.5 million; recent upsized frac may bring the cost to 7.2 million. A lot of renewed interested due to much improved frac. Production declines very tolerable. As Rick says, fantastic is good word for these wells.
Canadian: Devon Energy Production Co. LP; Bessie 6-13N-9W No. 4H Well; SW1/4 SE1/4 SE1/4 SW1/4 (SL) of 06-13N-09W; 107 barrels oil per day, 2,161,000 cu-ft gas per day; TD 17,165.
Devon Energy Production Co. LP; Bessie 6-13N-9W No. 8H Well; NE1/4 NW1/4 NE1/4 NE1/4 (BHL) of 06-13N-09W; 2,874,000 cu-ft gas per day, 138 barrels oil per day; TD 17,420.
Devon Energy Production Co. LP; Bessie 6-13N-9W No. 9H Well; NW1/4 NE1/4 NE1/4 NE1/4 (BHL) of 06-13N-09W; 2,823,000 cu-ft gas per day, 150 barrels oil per day; TD 17,624.
Devon Energy Production Co. LP; Walking Woman 5-13N-9W No. 1H Well; SW1/4 SW1/4 SE1/4 SW1/4 (SL) of 05-13N-09W; 289 barrels oil per day, 3,332,000 cu-ft gas per day; TD 17,318.
Devon Energy Production Co. LP; Walking Woman 5-13N-9W No. 2H Well; SW1/4 SW1/4 SE1/4 SW1/4 (SL) of 05-13N-09W; 305 barrels oil per day, 3,709,000 cu-ft gas per day; TD 17,233.
Devon Energy Production Co. LP; Walking Woman 5-13N-9W No. 3H Well; SW1/4 SW1/4 SE1/4 SW1/4 (SL) of 05-13N-09W; 3,896,000 cu-ft gas per day, 203 barrels oil per day; TD 17,204.
Canadian: Devon Energy Production Co., LP; Bessie 6-13N-9W No. 3H Well; SW1/4 SE1/4 SE1/4 SW1/4 (SL) of 06-13N-09W; 3,575,000 cu-ft gas per day, 114 barrels oil per day; TD 17,260.
Devon Energy Production Co., LP; Bessie 6-13N-9W No. 5H Well; NW1/4 NW1/4 NW1/4 NE1/4 (BHL) of 06-13N-09W; 4,215,000 cu-ft gas per day, 179 barrels oil per day; TD 17,555.
Considering how rapidly production drops in these areas, those results are not stellar. If they are north of $10 million per hole for production and completion I suspect they may have trouble getting a payout quickly. Rumor among the exploration managers meetings in OKC is that Devon is committed to drill by contract with some money folks from overseas but would just as soon not be drilling many of the wells that they are.
Thank you Rick for posting the information on the Walking Woman wells and addressing the issue of the Woodford decline curve.
Thank you as well, JW, for your opinion of the wells in the core area. In your opinions, what production constitutes a very good well in the Cana Woodford core area?
Hello. I need to names of a few good oil and gas attorneys in Canadian County, please. Thanks in advance!
Canadian: Devon Energy Production Co. LP; Cindy Lou 27-13N-9W No. 1H Well; S1/2 S1/2 SW1/4 SE1/4 (SL) of 27-13N-09W; 475 barrels oil per day, 250,000 cu-ft gas per day; TD 13,172.
Canadian: Devon Energy Production Co. LP; Bessie 6-13N-9W No. 6H Well; NE1/4 NW1/4 NW1/4 NE1/4 (BHL) of 06-13N-09W; 4,770,000 cu-ft gas per day, 162 barrels oil per day; TD 17,450.
Devon Energy Production Co. LP; Bessie 6-13N-9W No. 7H Well; NE1/4 NE1/4 NW1/4 NE1/4 (BHL) of 06-13N-09W; 4,502,000 cu-ft gas per day, 179 barrels oil per day; TD 17,400.
Bill I could not find much .
We’re getting an offer on T11N-R5W, Section 8, and would appreciate any information on what others are seeing in that area.
Received lease offer from two entities on Section 8-T11N-R5W- would appreciate any information on activity and offers in this area.
Arnold Oil Properties did some leasing in the area in 2013. 7, 9, 10, 15 have some leases within the 13-14 time frame.