Horizontals in Dawson County

Hey again,

Seeing all the activity starting to ebb toward Dawson I thought that perhaps we could have a post dedicated to horizontal developments. Just saw Clint's post about the permit for the Morgan lease. It appears to be a horizontal, targeting the Spraberry formation.

I have heard from someone versed in these matters that Dawson isn't as productive territory as the counties just to the south. That to me means that each horizontal drilled out here has very significant importance.

Cross yer fingers 'all!

http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPublicQuery=Y&name=MORGAN&univDocNo=488269983

I am keeping my fingers crossed because one of those horizontal wells belongs to my family. We tried to see if there was any production figures pulling up, but it is my understanding that it could take a couple of weeks for the information to post. When I asked the company...they told me I could gather that information from the RR. So, now, I guess it's a waiting game.

Will someone please explain what the note below means?

The Tatonka #1H well is flowing back frac water; meaning the water used to frac the well is being recovered. The most update report shows that 25.3% of the produced water has been recovered. It can take several years for 100% of the frac water to be recovered. We have equipped the well with an ESP (Electronic Sub Pump). The ESP allows for an effective artificial lift method of pumping producing fluids to the surface. Otherwise, we are continuing with standard operations.

Emily,

Not sure but I will send that to someone that would know what it means.

Got another horizontal permit application.

http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPublicQuery=Y&name=MORGAN&univDocNo=488270114

Emily,

According to what I was told, the operator "SM Energy" is a very experienced operator with a lot of horizontal experience. The ESP is a good move but tends to require a lot of care and maintenance.

Normally, any oil or gas breakthrough occurs around at the 10%-15% recovery level of frac water. He also stated that it is almost unheard of for a complete 100% recovery of frac water. So some of the water flowback may be formation water. Have they completed the IP test yet?

I am not sure what an IP test is? However, I know they conducted some test back in December 2013 for some type of geo-study.

IP Test=Initial Production Test

Emily Rose said:

I am not sure what an IP test is? However, I know they conducted some test back in December 2013 for some type of geo-study.

I have no idea...I just know they did a geo study for 24 hours around the middle of Dec.

SM is scheduled to release earnings after close this afternoon. Perhaps they will release IP numbers on the Tatonka 1H.

Emily Rose said:

I have no idea...I just know they did a geo study for 24 hours around the middle of Dec.

Emily,

Thanks to the headsup from PHIL I have located the information about your well. As he said it is in the SM's earning statement released just tonight.

http://phx.corporate-ir.net/phoenix.zhtml?c=90687&p=irol-presen...

Click fourth quarter earnings and then once the PDF file opens up go to page 37. Tatonka is listed with its IP test results.

Oh and btw you have a nice well! You can uncross your fingers and toes now :)

Hello Earnest,

Thank you for posting this information. It is greatly appreciated and made my night...well, actually morning.

Thanks again,

Emily Rose.

What is the difference between the 7-day and the 30-day peak? Which figure is better to use for trying to factor?

The 549 BOE/d or the 376 BOE/d?

Thanks,

Emily Rose.

Earnest said:

Emily,

Thanks to the headsup from PHIL I have located the information about your well. As he said it is in the SM's earning statement released just tonight.

http://phx.corporate-ir.net/phoenix.zhtml?c=90687&p=irol-presen...

Click fourth quarter earnings and then once the PDF file opens up go to page 37. Tatonka is listed with its IP test results.

Oh and btw you have a nice well! You can uncross your fingers and toes now :)

Emily,

The longer the test period the better idea of the well potential (I think anyway). But you'll notice also in the pdf that it mentions that your well is going to be put through further testing. I suppose they will be trying some other things to boost bbl/day. Another very interesting thing if you'll notice is that it specifically mentions your well for a Wolfcamp D test. I think most people here consider the Wolfcamp D formation the same as the Cline formation. There is a lot of speculation about the Cline.....some say it could be massive.

Regardless, it means that the drilling on your land has only begun! Which can only mean great things for you and yours! Congrats!

Hey Emily,

Here is the completion report for your well. Looks mighty fine! Congratulations!

http://webapps.rrc.state.tx.us/CMPL/viewPdfReportFormAction.do?method=cmplW2FormPdf&packetSummaryId=98527

According to the newest release from Diamondback's FANG operation, results look good for the Dawson county area.

"Diamondback's first operated Andrews County horizontal well, UL III 4-1H, produced at a peak IP rate of 613 boe/d (85% oil) from a 4,051 foot lateral and has averaged 585 boe/d over the last seven days, on submersible pump. Mr. Stice added, "I am excited about the early success of our first operated Andrews County horizontal well. We believe this is the northern most test of the horizontal Wolfcamp "B" completed to date, and the success of this well is encouraging not only for this lease but is also a positive data point for our recently announced pending acquisitions in Martin and Dawson Counties. This well was drilled in the Wolfcamp "B" with a short lateral due to lease geometry and completed for just over $6 million. When normalized to a 7,500 foot lateral, which is how we compare results across the basin, our test results equate to almost 1,100 boe/d."

http://ir.diamondbackenergy.com/releasedetail.cfm?ReleaseID=788419

This press release is dated 3 Sep 2013.

Oops, I should have read the date. I don't know why realclearenergy chose to list this as a new story.

Just as an update:

RSP Permian will be holding their quarterly conference call on the 11th of this month. They had previously stated that they should have results for the Morgan lease (which is 14 miles South of Lamesa) sometime in August. So it might be very likely that we will hear about those results Monday.

This would be the first HZ on the southern part of Dawson county and everyone with interest in the county might want to see how it goes.

Lamesa Press Reporter

Wednesday, August 06, 2014 12:00 PM
Horizontal drilling for oil is on the increase in the southwestern part of Dawson County. Permits for three horizontal wells in that area are among six permits for drilling operations in Dawson County that have been issued recently by the Texas Railroad Commission. The No. 1602H Estes B Unit is a horizontal drilling effort planned by Diamondback Exploration and Production some 19.3 miles southwest of Lamesa and just a few miles from the southwestern corner of Dawson County. That well is scheduled for a depth of 9,900 feet. The penetration point will be 510 feet from the west line and 210 feet from the north line of Labor 16, League 265 of the Kent County School Land Survey, Abstract 405. The well will travel horizontally 7,888 feet to the south-southeast, going under State Highway 115 and ending in Martin County. Diamondback Exploration also has received a permit to drill the No. 2201H Patricia Lands as a horizontal operation about 16.3 miles southwest of Lamesa and about a half-mile north of State Highway 115.

http://www.pressreporter.com/Content/News/Inside-News/Article/Horizontal-drilling-operations-planned-southwest-of-Lamesa/1/17/1107