Has anyone had lease offers in Stephens county, 2N 6W Section 15? the Bray Store is in that section for reference ?
No new leases have been filed in quite some time. That area has deep Woodford gas, but it quite deep and not economic at this time.
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I have had lease offers. Have not responded , just curious.
New lease offers would be encouraging. Gas prices are higher now, so that might move the economic needle.
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yes, there is immensly huge and very deep natural gas reservoir , in the woodford and missisipan, across 15 and 16 … this carries a risk and the fact an existing shale well is 10 miles away, and their exists some fault lines just in the farther side of west section and they may cause problems when they hydrofrack it could possible cause the fracture to fall in.on itself there has been no activity in this section 15 since a former governor of Texas drilled a dry hole there in. the 70’s or 60’s according to my late Mother. as a result they are offering 350 an acre for 3/16, 500 for an 1/8 , or 1/5 for no bonus or 100 dollar bonus. he said no 1/4 no bonus . I made an offer he is going to call the investors in west Texas to inquire… I have never had production from a shale well so I do not know if how much a huge gas well at the prices now or higher would bring in on 15 acres with a 1200 acre spacing I am assuming since it will go out over two sections. they have leased over 250 acres in 15 s0 far at these priced as they stated . I need to have 1/4 not 1/5, so I may wait till pooling . my Grandfather bought these in 1959 from his wife’s brothers and sisters that wanted to sell them. so my 2.5 acres may not be worth it unless it is an immense deposit and nat gas climbs
Given the location, I doubt they would offer 1/4 in this season of leasing and probably not at the pooling either. It is an immense reservoir that stretches from Kansas to Texas but very deep and very hot in 2N-6W, so expensive to drill. The closest horizontal well that I found was the Martin 1H-6X in 6 & 7-2N-5W. Drilled by Newfield (Ovintiv) back in 2015. Current production is over 3.3 BCF with probably more than 5 BCF left and decades of production time. Natural gas prices are likely to be robust over the next few years. Lots of reports online about that scenario with many opinions. The Woodford reservoir is likely to be about 300’ in sections 15 & 16 and surrounding.
The equation that is used to calculate returns is: net acres/actual spacing acres x royalty x percentage of perforations in your section. Most of these multi-unit horizontals are spaced at 640 acres for each section although they drill both. A few are larger at 1280, but not as many. They may state a 50/50 split in early documents, but the actual percent of perforations will be determined by the survey at the end of the well. For these types of wells, they come on strong in the beginning and then taper off due to the decline in pressure.
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Thank You for the calculation for returns, and reminding me that they do different splits .
What do you mean when you say, “they hydrofrack it could possible cause the fracture to fall in.on itself”?
I do not know in this case what that may imply, shale being a very hard rock I am not sure . And this was a phrase a Landman used .
Speaking as a geologist, I would take that statement with a grain of salt… One would need to know how far away the fault is, is it anywhere close to the reservoir in question, etc. The successful hydrologic fracturing of shales has been tremendously effective to getting good flow out of shales.
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