Can anyone tell me approximately what MCFPD constitutes a
"good" gas well?
Thanks,
Julie
Julie,
I think I speak for everyone here when I say that for anyone to have an answer to this, they will need more information. Your question is highly ambiguous and will be very hard to answer as it is, but if you could tell us the State and County and/or formation, that would help. What may be a "good" gas vertical well in a shallow formation somewhere that cost less than $500,000 to drill would probably not be considered "good" in the Haynesville Shale on a 7,000+ ft. horizontal well that cost $10 million plus.
in the old days... a million a day would be very good. just a general answer. But, TT has some good points.
TT,
I thought I posted this discussion in the Jackson County, OK forum...that's where the wells are. The information I have is: one is in the Atoka formation (straight hole) TD 8,900' ~ IP 2.6 MCFPD, another is in the Atoka formation (horizontal) TD 11, 940'~ IP 900 MCFPD, another in the Barnett Shale (horizontal) TD 11,975' (true vertical 7966')~ IP 1.1 MCFPD. No idea what it cost to drill them.
Thanks for your input.
Julie
There are no `good` gas wells at $3 a thousand..... just kidding... some operators can make this work if theyre still on $9 hedges or have recently made deals with power generators.
I have an extended question. There are two vertical wells on my property & the volumn production and of course the price has gone down drastically. Where is the breakoff point where they will abandon the well? Or is volume controlled by price? and if prices improve would volumn possibly increase? Can't get much info from the producers.
I don't think they will abandon the well, they probably have too large an investment. I think shut in would be more likely as it would protect the investment and the proven reserves would still be there for collateral. Sale of the well/s is another possibility. I think operators are in the holding acreage business as much as the production business and are less likely to plug and abandon a well than ever before. I hope everyone gets a better shut in clause than the $1 per acre per year that I see so often.
James, price usually improves volume produced. That is until the price rises enough to get the gas behind pipe, so to speak, into sales lines and to the end users.
There's an old saying in the industry that low or high natural gas prices fix themselves.....low price equals rise in demand (when users of other energy sources switch to gas or when current gas supply gets used up) which leads to a rise in price and so on in circles.
Get more of America using natural gas for trucks, power generation and heating and we will use more it creating a temporary supply squeeze which allows producers higher prices. Producers go nuts, drill more and larger wells and create a glut of production. Price drops, wells are shutin until forced to sell natural gas at low prices.
Right now they're doing themselves and you a favor by leaving the production behind pipe until the situation for gas better.
Contracts for long term production works for everyone as long as the government plays nice.
Google the word " contango "for a twist on this scenario and some advanced thoughts. (sorry in advance for inviting you all down the rabbit hole if you do search the word)
There are many more factors that dictate (the most appropriate word here) commodity prices. They are surface and regulatory based.
Good news is hang in there....the happy days for dry and wet gas are almost here. In six months things will look alot different in the gas producers life.
Hope that's a help....being both an owner and within the industry, I am not sure it clear.
Thanks for the information and I pretty much understood what you were saying. I'm curious as to what makes you think that things will pick up in 6 months? Isn't there also a shortage of transmission lines from the fields and does that affect price? I googled "contango" and it left me in the dust. Thanks again.