Thanks again for all your help Dusty. Where can i get info about the 2H well on whether or not they have drilled anything yet? Or can I even search spud dates, etc?
The permit for the 2H on RRC’s website shows that it was spudded on 11/10/2018 so they should be finished drilling but may not have fracked or put it in production yet.
Unless you have access to one of the subscription sites like Drilling Information you probably won’t be able to find out any more information on its status until Anadarko gets around to filing a completion report and starts reporting monthly production to RRC which often takes several months. You could start receiving royalties from it before that happens.
Good news on the drilling. Is there a usual date during the month that the reports are listed for the previous month? Also, once that start production on the second well, will it be on the same page as the first well?
The RRC deadline for filing production reports is the last day of the month following the month covered by the report. In other words, the report covering production in February was due on March 31st.
If you weren’t able to pull it up using that link I posted earlier, Anadarko did report February production from the IH well of 10,464 mcf and 2,681 barrels of condensate, which is the first production they had shown for it since October.
On your question on whether the production from the 2H will be reported on the same page as the 1H, I think of the production from that unit or lease will be combined in one production report but the volumes for the two wells may be shown separately on the monthly statement you get with your royalty payment.
Good to know. Thanks for all your help buddy.
So on my production report from the link you sent me, it has a cloning labeled oil and then another’s one labeled gas. So this well is pulling both correct? I thought it was only a gas well from the map?
Under RRC rules wells are classified as either gas or oil wells based on the Gas to Oil Ratio (or GOR) the well had when the operator ran the initial completion test on the well. That ratio of the mcf’s of natural gas versus barrels of oil that it produced determines if a well is called a gas well or an oil well. But the wells called oil wells generally produce some natural gas and many wells that are classified as gas wells also produce liquid hydrocarbons called condensate.
Whether the liquid gets called crude oil or is called condensate depends on whether it came from an oil well or a gas well, but the main distinction is the specific gravity of the liquid. In other words condensate is just a light, high gravity, type crude oil that is produced from gas wells.
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The RRC has approved amended field rules in some areas to provide that all wells are classified as gas wells, regardless as to the Gas to Oil Ratio. For example, the Ford, West (Wolfcamp) and the Phantom (Wolfcamp) field. Many of these wells then qualify as high-cost gas wells and no severance tax is due on the gas sales. Severance tax is still due on the oil sales.
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