M Barnes, Sorry you misunderstood my posts. I mentioned Devon could use their new SAGD in OK. I would think probably where the tar sands are down in Southern OK and I have been told by an attorney in Stillwater that companies will “for sure waterflood” my area which is Payne Co., so mentioned it in another post. Virginia asked me where in Canada was Devon using steam and I gave her Devon’s Canadian locations.
M Barnes, Yes, I’m familiar with waterflooding as family trust has quite a few wells in waterfloods down in SE OK, but we have never experienced the steam, but may because trust has minerals in South Central OK too. Seeking Alpha article says that Devon is using a new steam recovery in Canada that uses brackish water. That would seem to be a good reason to pipe disposal water.
Robert
most every location in the county has a salt water tank on it, my location like many others also has a injection well. if the separators are to small I would think devon would correct that problem prior to putting oil down the disposal well.
Virginia, you may have to have a subscription to view, so the article says: “Devon’s thermal heavy oil operations, located in the Athabasca oil sands in northeast Alberta, use the SAGD extraction process. Athabasca region can be defined with two major oil sands deposits: the Grosmont Formation and the Wabiskaw-McMurray Formation. The Grosmont Formation is a late-Devonian shallow marine to peritidal platform carbonate consisting of four recognizable units within the deposit. All of the hydrocarbons are located in an updip position, structurally trapped along the erosional edge and contained by the overlying Clearwater Formation. The McMurray Formation was deposited on an exposed karstic landscape of ridges and valleys and varies in thickness from being absent over Devonian highs to over 426 feet thick in the Bitumont Basin. Bitumen-rich reservoirs formed within estuarine valleys stacked above the Lower McMurray channel sands and are assigned to the Upper McMurray Formation.” http://seekingalpha.com/article/1644462-carbonate-triangles-athabas…
Logan: Stephens Production Co.; Zachgo No. 2-8-17H Well; SW1/4 SE1/4 SW1/4 SW1/4 (SL) of 08-16N-04W; 834,000 cu-ft gas per day, 237 barrels oil per day; TD 12,256.
Where are the rumors about elimination of WTI coming from and just going totally Brent Market? Would it even be possible for this to happen, this is not just something they, whomever “they” are, could do akin to merging 2 airlines like American and US Air that came about less than a month ago. At the same time, I could not even imagine at one time the global elimination of TWA, Braniff or Pan Am, but they indeed just seemed to disappear. Could they do this to WTI?
Robert, OCC says you can go look and not touch if you have the landowners permission. OCC only has metered production data for gas wells because of the pipeline reporting and you can access that data. I suggest finding out what company is checking the meters and talk directly with the guy who checks your oil wells.
Martha, Waterflood and steam flood are two different recovery methods. It is totally possible that they will water flood in Payne.
Plains All American is adding a pipeline to its existing Mississippian Lime assets…include(s) the construction of nearly 45 miles of new crude pipeline…expected to be brought into service in 1Q14, will extend Plains’ infrastructure into Logan and Grant Cos…to Plains’ Cushing terminal. The project includes the construction of 150,000 barrels of new tankage along the system and is supported by a long-term acreage dedication and a storage lease at PAA’s Cushing terminal from an area producer. Does anyone know if Devon is the “area producer”?
http://ir.paalp.com/profiles/investor/ResLibraryView.asp?ResLibrary…
M McM,
I think Plains all american pipeline is part of the old Murphy oil and then they merged with shell pipeline. Don’t remember the year, but it was about 10 or 11 years ago. They transport & store oil for any company, not just one company. So, I am sure they will be picking up some of the oil from Devon and others in the area. They are fairly big in Canada under another name, on the NYSE under PAA. I think their main office is in Houston now.
This would be a major injection facility I would think. Taking in water from all the surrounding wells, not the one production well, one swd well locations.
Robert,
I don’t know how many salt water wells are in your location, but I know my salt water disposal wells are across the road from me on several of my farms. some are on the same pad. Plus some of the farms have more than one disposal well. Within a 2 mile radius, I know of at least 4 salt water well and they almost look like producing wells with tanks, christmas tree, etc. So drive around your area and check the signs at the gate. Where you there when the laid the lines, just follow them and they will go to a salt water disposal well. Also, if you know your pumper, ask him where your wells salt water goes. I know what M McM. is talking about as their is one located a few miles south of Covington just about 1 mile off the hi-way. It’s a blue tank that looked like above ground swimming pool only 100 times bigger. I don’t know if it’s still there now, but their wasn’t any water a couple years ago and they were reusing the water.
Just a comment, the Devon SAGD in Canada and the steam process is very different than what we are looking at in Logan. Bitumen is like tar and they are trying to heat it to release it since it is stuck and cannot move. I won’t go into the technical details, but the reservoir is very shallow and quite a different situation. I have listened to quite a few presentations on it in my former life. Fascinating story.
The Woodford and Miss Lime in Logan are different beasts. This hydrocarbon has matured under different circumstances and is in gas, condensate and oil form which are mobile. It needs different technology-hence the perf and frac.
That being said, I am all up for new technology. I am attending a conference on the Miss. Lime in February, so will keep my ears open.
Logan: Sundance Energy Oklahoma LLC dba SEO LLC; Cornforth 15-3-9 No. 1 HW Well; SW1/4 SW1/4 SE1/4 SE1/4 (SL) of 09-15N-03W; 130 barrels oil per day, 192,000 cu-ft gas per day; TD 10,613.
Sundance Energy Oklahoma LLC dba SEO, LLC; Plagg 17-3-13 No. 1 HM Well; S1/2 SE1/4 SW1/4 SW1/4 (SL) of 13-17N-03W; 356 barrels oil per day, 207,000 cu-ft gas per day; TD 10,433.
Logan: Sundance Energy Oklahoma LLC dba SEO LLC; McIntosh 19-3-9 No. 1 HM Well; S1/2 S1/2 S1/2 SW1/4 (SL) of 09-19N-03W; 118 barrels oil per day, 476,000 cu-ft gas per day; TD 10,253.
Virginia, Thank you. I’ve been trying to get a handle on 2014 WTI -Brent Spread ever since Sir Ron’s post this morning. Since WTI spot price is set at Cushing I started looking at Cushing’s new pipelines & storage and found that Morgan Stanley thinks WTI might trade at a premium to Brent in 1H14 and that’s good news for us.
http://www.4-traders.com/TRANSCANADA-CORPORATION-1411996/news/Trans…
“The structural crude shortage in Cushing will only worsen with the addition of new pipelines in late 2013 and 1Q14,” the bank said in a research note.
“With the Gulf Coast oversupply likely to take longer to play out and no need for spot barrels to flow out of Cushing until late 2014 at the earliest, WTI should trade much closer to Brent for most of 2014, and potentially at a premium in 1H14.”
Brings back memories of being one of the few alive today who have ever flown on the TWA Constellation, which was the most “romantic” of all airliners ever built. Nothing else like it ever.
Ron, the spread between WTI and Brent is growing and Brent price has become the global price. Do you have an article or remember where you heard the rumor? For sure, there are numerous pro’s and con’s of keeping or doing away with the WTI pricing and only using Brent. Currently, we have about an 8$ spread which could get bigger if US starts exporting oil. ?? To much for me to think about when I’ve only had 2 cups of strong coffee.
does anyone know if he landowner/mineral owner has the right to access the lease and look, not touch the surface facilities?
does anyone know if the mineral owner can access production data from the local meters?
virginia
i see your comment on micheal about state rule for first royalty check takes 6 months. i dint know this thing before being new in this thing.i would like to know that why would they pay 12% interest on that. is it also a rule?