Does anyone with any experience in well productions have an opinion if this well will ever recover from its collapse from its first 2 years of operation? The fracking of the well to the west (I cannot remember its name) seriously damaged its productivity and it never fully recovered… far from it. I certainly understand that wells do deplete, however even Casillas admitted it had serious damage from that event. The 600 ft spacing did not seem to save it. Perhaps it will recover at some point… if so, I certainly have patience. If not, shouldn’t that enter into any evaluation of the sectional value?
Asking for a friend… actually I am. 
It will never recover.
I agree. However, are you of the opinion that it died as a result of the fracking of surrounding wells? The rep from Casillas said as much. If so, is the penetration it had still viable for another drilling? I do believe that the well’s demise was not due to depletion.
Let’s say you have been enjoying your extra large milkshake by yourself. A pretty lady sits down and asks to join you in your enjoyment. All of the sudden the milkshake begins disappearing rather quickly. The extra large cup held a finite quantity of milkshake and you have 2 straws instead of one. Same with the Mississippi formation. There is plenty of oil in the formation and only time will tell if another well is warranted. But a 3rd “straw” will have the same affect on well #1 as well #2 did, all things being equal. Pressure depletion is the big culprit.
Unlike a straw you put in a glass, you can place fracs exactly where they need to be and control how much sand you pump into each one preventing super clusters that hurt production from offset wells.
It is helpful to think of the whole section and recovery instead of a single well. The Indultado 3MXH will recover some of the reserves that 1MXH may no longer be able to. (Another straw in the milkshake)
Frac hits can happen with close spacing and can be avoided by several different practices. If the well that was hit by the additional fracs is sanded in they might be able to do a clean out depending on where the sand entered. On the other hand if the well has taken in fluid and proppant from the newly fracked well there usually severe damage. Someone might try to find out if the nonproducing well just needs a clean out.
The reduction in production of that first well,(1MXH), had started before the extra wells were introduced. I put the output into a spreadsheet, and it shows regular slowing of output, then an immediate up tick in production afterwards, till we ran out of storage in 2020. They were clearly keeping the well alive, however they do that, but the lack of consumption during the pandemic was the killer to the well. I am certain M Barnes is correct, in that the second well in the Mississippian is intended to “recover” or optimize what is produced from that geologic formation. New productions numbers show the recovery, though, time will tell if the new well can help the first well. I am only best guessing in this response.
I believe that 1MXH suffered its first hit in July 2018. It averaged over 20k BO for many months prior. It was shut down for fracking of a nearby well “for a few days” per the operator. It never recovered. 7/20/18 the production had dropped to 2k BO. I do not have any production numbers for 2022 yet. However, I assume they will be less than the 2k. I will rely on the operator to do what is best for their interests and thusly… mine. Gift Horse thing!
Is there any site that shows the proximity of the existing wells to each other for section 21-28?
New OK mapping link.
https://gis.occ.ok.gov/portal/apps/webappviewer/index.html?id=ba9b8612132f4106be6e3553dc0b827b
Shutting down the parent well helps raise pressures in hopes of preventing a frac hit from the nearby well. Some companies in Canada shut in a week before and even do a risk analysis, but that is more expensive.
That is an interesting map. Thanks!
Looking at that map, it seems the 1MXH well was roughly 1/2 mile from the Moose well. It is also roughly 1/2 mile from the new wells 2 and 3. Perhaps the strata that 1MXH was drilled in was just to fragile to take any disruption even from that far away. If this condition is persistent for the new wells, maybe it’s better to leave well enough alone. And I’m OK with that.
Does anyone here know what is going on with the payouts for Indultado 2MXH & 3MXH, been pumping since Dec 8th 2021. Thanks
1 Like
I was told by Casillas yesterday that we should have checks this week. They told me the same thing 2 months ago. Request your 12% interest.
1 Like
I was told last week that checks would be mailed (snail mail) last Thursday. Should begin receiving checks by Friday or Saturday… Monday at the latest. I cannot remember when the last time Casillas actually said something that actually happened. Public Relations is not their strong suit.
However, if they will lie to Mr. B, then I don’t feel so picked on! When dealing with Casillas, just Believe it when you see it!
1 Like
Does the clock begin ticking at 1st production or 1st sales?
Those are pretty much synonymous these days, but the technical term is 1st sales. Wells very seldom are only oil that flows into tanks and awaits sales. With gas, there is no storage so gas goes straight to the sales line.
Hi Mr. Baker, could you explain how the 12% penalty works? Would the penalty be be for the entire 4 months of production that is expected on this first check, or does the penalty only applicable for certain production days?
I spoke with them yesterday and they said checks had been mailed this week. I’m just grateful they drilled new wells and we will be getting more money.
I just received notice of ACH payment.