Hi,
I have interest in well # 22681 which started production in August of 2012. 154-96-6 lot 3 I can read the monthly info on NDIC, but find the more detailed information some of you I.E. Mr Kennedy provide. If Mr Kennedy or someone else can provide information of the tracking steps so far for this well, that would be neat. Thanks. God Bless, Randy
I meant fracking steps so far, sorry.
Randy, it was a 30 stage sand frack. It has been a very good producing well for a sand frack, I believe due to the fact that the area is so good. I think most operators would have went with ceramic in this area and made an even better but more costly well. Unfortunately, we have no control what production methods the operator uses to produce our minerals. The choke was pretty loose at 44/64ths and resulted in a pretty good IP number which is mostly just advertising hoopla. Was there anything specific you were looking for?
Mr Kennedy, I appreciate your response. You had expressed examples of how wells were done which drew my curiosity. XTO has permits for three additional wells on this location. Keeping fingers crossed that the drilling is sooner than later. I really enjoy how kind you are to respond and inform so many individuals on this forum. Enjoy/>
r w kennedy said:
Randy, it was a 30 stage sand frack. It has been a very good producing well for a sand frack, I believe due to the fact that the area is so good. I think most operators would have went with ceramic in this area and made an even better but more costly well. Unfortunately, we have no control what production methods the operator uses to produce our minerals. The choke was pretty loose at 44/64ths and resulted in a pretty good IP number which is mostly just advertising hoopla. Was there anything specific you were looking for?
Mr Kennedy
Do certain operators use silica and stay away from ceramic? Does XTO tend to stay with sand? Since this has been a good sand frack producer, would XTO maybe move up to ceramic for the next wells in this section? Thanks very much.
r w kennedy said:
Randy, it was a 30 stage sand frack. It has been a very good producing well for a sand frack, I believe due to the fact that the area is so good. I think most operators would have went with ceramic in this area and made an even better but more costly well. Unfortunately, we have no control what production methods the operator uses to produce our minerals. The choke was pretty loose at 44/64ths and resulted in a pretty good IP number which is mostly just advertising hoopla. Was there anything specific you were looking for?
Mr. Fosse, silica is strong sand, it's also cheap. Unfortunately silica does not stand up as well as ceramic propants at the depths of the Bakken and Three Forks wells, the pressures are too great. There are operators drilling to a price point to bring down the price of the well, often because they are drilling so many of them. I believe this can have a deleterious effect on the mineral owners income because you get paid based on what is produced and sold and a cheaper well is rarely the most productive well. Operators like to see a quick return on their money and I believe they would rather recover the cost of drilling in less than two years than they would like to recover their money in three years and a greater profit over the life of the well. Less production, less profit to the mineral owner who sees no savings from drilling a cheaper well. I have occasionally told people interested in leasing who had two different operators in an area that I would lease to one over the other when I could see a definite difference in the amount each operators wells produce, 25% in two years is not an uncommon differential between some operators I have seen. It's a facttor to consider, one might offer higher bonus and royalty but if you think they may drill a 25% inferior well, the lower bonus and royalty offer might be preferable. A cheap well leaving oil in the ground is not to the mineral owners advantage.
The bad news is we most often do not get to choose the operator. I have an operator I would like to fire if it were so, about 1 in 3 wells that they have drilled on my minerals in multiple spacings have needed extensive rework before they could produce or they lost the wellbore and had to start over. It was not just my spacing either, I checked around in several other spacings and saw the same performance, or lack thereof. Other operators in the area don't seem to have the same problem.