How long do wells keep pumping out oil?
It says field is permitted for oil only there is always gas when drilling for oil do they have to burn it off or do we keep it?
The oil vs gas well designation is based on Tx RRC standards as to the ratio of oil to gas in "trend" wells. This is important since there are some differences as to unit size and allowables from one to the other.
But regardless of the designation, the operator will capture both oil and gas and you will get royalty payments for both.
Wish you the best on this upcoming opportunity! Has to be exciting.
Assuming that the operator finds what they are hoping for, this well should produce for 20+ years. But as I believe has been noted earlier, the production profile from this well will almost have a typical fractured reservoir production profile, i.e. initially a high IP that will start to decline almost immediately at a very steep rate. The production from month #12 will only be about 20 to 30% of that seen in month #1. And decline will continue for a few mote years until a low albeit flat rate is attained. This is the level that the well will continue to produce at for years until economic limits (or mechanical limits) are encountered.
Now just what does it mean on thr W-1 that shows Engineering,and how long does that take ? I thought approvel was on the way today.
Thanks for all your help
"Engineering" is part of the review process the Tx RRC puts all permits through. Time to get permit reviewed and approved depends on number and degree of problems with the original permit.
Tx RRC is swamped with permits and the horizontal ones are very difficult to review and approve. I have heard 6 weeks is a good estimate to get approval right now.
William
Just to show how quick it can happen. RKI permitted 2 wells on our property 1 12/12/13 and 1 1/8/14. They drilled 1 and moved the rig 25 ft. and drilled the other. By July we had our first check on both wells.
Garland
Sounds great what kind of production are you getting ?
Looks good. First month 18,000 barrels of oil each and 50,000+ mcf of gas each.
Garland
That’s great hope it keeps up for you.
Great initial production numbers! Will be interesting to see what how the production decline proceeds over the next 6-12 months
There's another well on the other side of the section it has dropped to about 15% of what the first months production was over 10 months. It will be interesting to see if the new ones are the same.
Sounds about right - up to 90% decline over first 12 months should be considered normal unless the operator is doing some major choke maintenance to reduce rate and conserve pressure / increase EUR (theoretically)
What's the wellhead price there paying for gas I can't find any price for gas.
Gas was down to $3.79 the other day but price will be dictated by what the gathering contract calls for including transmission and related take away costs.
Do you have a no cost lease or will have to take deductions for various O&G marketing / trucking / processing et al fees?
NGL content will be big factor here - either in pure NGL's or Btu upgrade on base gas price
Well we got our #1 well Approved this morning ,the powers that be say they will drill in October so now another wait for money.This is a real long process I hope it's going to be good.
how much oil are the wells in the area turning out a day?
William,
here is your well::
Clint Liles
How much oil are these wells pumping daily . Can they put 10 to 12 wells on a 640 acre section is it big enough and frack them all?
It appears that they will be able to drill 4 long horizontals per unit based on the current configuration. This is for one bench. I don't know if Anadarko has plans to drill multiple benches in this area.
Also not that one well will hold the unit by production (HBP), so they may delay the drilling of new wells after well #1.
As for production, I would suggest you check the Tx RRC site for Wolfcamp production from Anadarko horizontals in Phantom Field. I just looked at a couple of recent Anadarko IP's for this area - 1100 BO and 2 Million cubic feet of gas per day. However, like other Wolfcamp areas, I would expect a steep decline starting immediately with overall decline in year #1 equal to about 50 to 70%, i.e. production at the end of a year will be about 30 to 50% of the production that was taking place in month #1.
Initially the wells will be flowing on their own but I am sure that there will be some sort of artificial lift installed once pressures decline over time.