There are several Co.s leasing in 15n-4w but the lease bonuses are so low I think the terms of the lease and the royalty interest are as important to think about.
I have just received a lease offer from Lowery Land 35-15N-4W $200/A 1/8. 3yr $150/A. 3/16. 3 yr Does anyone have information on this?
Hi Ron! Do you know what other companies are leasing there? It really does seem low.
It appears that Devon is now managing their production rates more closely. My well came on at 600bbls per day while flaring the gas. As soon as the gas was being sold, they dropped the rate to 300 bbls per day. It stayed at that rate for 5 months. Now they have dropped the rate to 150 bbls per day exactly. My educated guess is that they are seeing a breakdown of the fracs flowing the wells at maximum pump rates, and they have figured out that they get more oil in the long run by flowing the wells slowly. What I mean when I say the “fracs breaking down,” is that when flowing a well as hard as they can, the frac sand comes out of the fracs with the oil and water, and the fractures slowly close, losing permeability. Thus, the life of the frac job diminishes more rapidly. I expect to see the mississippi wells flowed more slowly from the beginning, and future cement squeezes, re-fracs, acid jobs, and new frac jobs being performed on these wells. With 5000 ft horizontals, there is plenty of room to squeeze off the poorer performing zones, and move down the lateral and re-frac. They could also just do another frac, (put more frac sand in the existing fracs). For those who have seen their production rates drop off significantly, it is clear that Devon is managing their flow rates now by slowing down their downhole pumps. In the long run the well will reach equalibrium, where the in-flow equals the production rate, and the well will stabilize at that rate. I would like to ask what the inflow of the Mississippi well would be? The last I heard was 60 acres. If so, does that indicate that there would be maybe 3 mississippi wells per 640 acre unit? What about the Woodford formation? Does anyone know what the inflow is on these wells? Is is more or less than the mississippi?
Jo Anne,
That part of Logan is not in the main Miss Lime or Woodford, so those lease terms are about right for gas. Actually about $50-100 higher than last time I looked. The most recent nearby pooling was in 2012. If it is the first offer, you might be able to get a bit higher, but not much.
m, thank you for the info.
I sold drilling water for 125 per day to Devon. We couldnt come to terms on frac water, so I wouldnt sell for 22cents per bbl. Too cheap during a drought. Another issue is the pipes they lay on your property to transport the frac water. They dont have a right to do that. You own your property out to the middle of the road. The only easements are for the county road and power companies. Any oil company needs to get your permission to lay temporary piping on your property. Many of my neighbors have told them to move it to the other side of the road. I imagine you could also negotiate a price for that if you wanted to.
Robert, You are right, the shale has low permeability, so it’s best to frac the shale as much as you can around the well bore. You need to expose a lot of the shale to the pressure drop to get the gas flowing and the natural pressures of the gas shale reservoirs will not decline that much as long as you keep the fractures open. Like you, I’m guessing the initial pressure drops are from the fractures closing and not depletion. Devon’s probably trying to figure out the best distribution and placement of proppant to keep the fractures open. In this case the bigger the reservoir the better, so you can have a pressure problems due to size of reservoir. Most of our family’s wells are in SE OK, so it’s been my play ground and it’s a little different than Logan/Payne. However, I know some operators are discussing tri laterals in the Miss for our area, as it’s proved most successful in the Bakken lime. Here’s an article from Schlumberger, but it’s mainly about the Arkoma in SE OK, so I need to do some research and get back to you. http://www.slb.com/~/media/Files/dcs/industry_articles/200903_aog_w…
Sir Ron Von, I will help you, if time allows. My duties in life are manysandthousandsandheaps!
J Layman, the completion is not listed quite yet. It can take a couple of months to make the public documents.
I am attending the Woodford conference in OKC this Thursday so maybe I will hear some exact numbers for comparison. This area is about a year behind the multi well drilling in SCOOP and CANA Woodfords area where they are getting six-ten wells per section in the Woodford.
Martha Barnes
Robert, Guessing 80-85 acres for the Woodford and 60 acres for Miss Lime. M Barnes will know Logan/Payne area better and me.
I was wondering if anyone can tell me anything about the production of Sparks sec24-18N-2W. It was drilled on 30-18N-1W in Payne Co. It was fracked about the first of March I believe. Thanks
Thank you Martha, I know what you mean, I finish this music recording school here in Orlando last of July so that is when I get started seriously. Liz, you are in financial luck, I love Fudruckers on W. Broad.
Fudruckers is gone, torn down and now it is buz and Ned’s BBQ.
Part Two:
http://newsok.com/activists-file-shareholder-proposals-on-lobbying-…
http://www.app.com/story/opinion/editorials/2014/05/27/supreme-cour…
The men, money and minerals that created Oklahoma Laws: Part One
Ii know it was a great restaurant. I will have to travel to your neck of the woods to experience. Thanks for the information. Having fun in all of this rain? LOL