Mewbourne is drilling horizontals in the townships T13-14N, R16-17W Custer Co, OK. Does anyone have any information regarding well costs? They are drilling vertically to about 11,000’, then horizontally for about a mile. Any comments would be much appreciated!
Most of the wells have 2-mile laterals. Costs are usually $9-$11 million completed.
Thanks Todd… what would you estimate the 1-mile laterals would cost? The Barrick in nene Sec 1-13N-17W is a 1-miler, straight north. Thanks for your info!!
I don’t find any well with a location in the NE/4 NE/4 of Section 1 going into Section 36-14N-17W.
Hi Yankee- I saw your question about Mewbourne in Custer county, and wanted to ask a question of you. We are newbys with properties in Roger Mllls county, and in the process of signing with Mewbourne.
Are you following the drilling costs for purposes of estimating your future payouts, or another reason?
After signing the contract with Mewbourne, and the very generic wording related to payout calculations, I’m concerned that the well costs (and driller deductions) will have a bigger affect than we realized. However, since we’re new and haven’t had active drilling in some time, we’re not totally sure what to expect.
Can you share some pearls of wisdom with regards to tracking well development costs??
Hi Todd- I uploaded the compl rpt for the nene 1 well…hope you can access it here.
BARRICK 36 PA 1H Compl Rpt.pdf (66.0 KB)
I’m really interested in the approximate cost for a 1 mile lateral. Thanks again.
The drilling costs have nothing to do with the royalty payments. They are sunk costs and are incurred by the working interest partners. The post production costs are the costs that are incurred past the wellhead and include items such as compression, dehydration, transportation, marketing, etc. They can end up being very expensive and you do not want a lease that has those included. Most draft leases will try just to see if they can get away with it. It is very wise to get a good oil and gas attorney to review any lease as there are quite a few clauses that need edits and other clauses that need to be added to protect the lessor (you).
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