Interesting observation Les. My question is how many Cline wells have been drilled to date and what are the results?
If Firewheel sells leases, do they have to be renegotiated?
Did you read an article, about the Fisher County well?
Dena, as it is early in the production history for Cline Shale wells, most reservoir engineers are assuming a 30% decline rate in the first year. Some of the “older” wells in Glasscock Co. are showing this, others are not. There will be “flush” production the first few months, followed by an assumed decline thereafter. If the well has a high initial production rate (greater than ~800 BOPD), then a steadier, higher rate would be expected throughout its life. Devon has tagged a EUR (estimated ultimate recovery) of 400K BOE (barrels of oil equivalent). These numbers will have to be large to justify the initial expenditures for drilling & completion of these wells (4-6 million/well). Devon will probably have to lower their EUR in the long run, but it sounds good to investors for now.
I’m not negative at all. I’ve been working the Cline Shale for over a year now, the Wolfcamp Shale before that. I am realistic in that not all areas of a resource play are going to be equal, some great, some not so good, and some just don’t work. We’ll let the big boys find the “sweet spots”. These wells are much too expensive to drill & complete to just begin drilling and do the old “wish & hope for”. There has to be a lot of science and a lot of completion expertise to be successful.
Les How much decline are you talking about? What is it doing now? Dj
What seems to be the hitch in the giddyup? Initially, the hype was that this would be as good as the Bakken and the Eagle Ford combined. Has it been the difficulty in finding appropriate fracking methods? Hard to simplify, I know.
Thanks Les So you were speaking generally, not about Willingham specifically? I understand these wells flatten after the first few year, so ideally, you get your money back drilling, then have a very low decline 25 to 50 barrel per day well, no? You seem very negative toward this play, true? Why? Dj
My thinking is that some folks here are a bit impatient and I don’t really blame them when it is so easy to get excited after leasing. The Dawson Geophysical guys were doing seismic out South of town near Lake Champion (what was lake Champion) just a few weeks ago for Devon. One would have to assume that the latest new drills have been drilled based on years old logs and speculation. Hang on folks. Let’s hope they see formation properties they really like and then they and all the other companies that buy their seismic info blast off. Of course, I’ve always been the eternal optimist. Fingers crossed…
Sorry, renegotiated, not renovated. Need to keep a closer eye on this auto correct on the spelling.
Otis, We used to affectionately call it Lake Champagne, now we sadly call it Tank Champion. Too many mesquite trees sucking the water, improved conservation practices so there’s not as much runoff, and below average rainfall for several years. At least that’s Mama Toni’s theory. Let’s hope this spring is wet !
Bill was glad he ran into you a few days ago and y’all got to talk a little bit.
Diana, They do not have to be renovated unless there was a squirrelly clause in the lease that somehow voided the new Lessee’s obligations upon assignment. I doubt that is in there, but you should check the assignment clause in your lease.
Toni. I enjoyed seeing Bill. Gotta catch you and Cole sometime too. Circumstances that led to running across Bill were funny and cool too. Hope to catch you and Cole soon as well.
Drilling rig has moved onto the McGee location on the north side of the interstate, 3 or 4 miles west of town.
Have they finished on your place or is this a different one?
No sir, they are doing flowback on ours.
What does flowback mean?
It will be a long month, or 40 days, or however long it takes to complete that phase. I am excited and kind of sick at my stomach too…
Janis,
FLowback means the well has been perforated and fracked, and they are flowing back the frack fluid out of the well. Toni should start getting initial production numbers soon.
Tony there are a lot of us out here praying for you.