Still no drilling! I went to the drilling pad a couple of days ago and there’s absolutely no activity. Not even a turtle crawling across the sand. I called the company to ask what their intention was to develop this lease and the response given was that they do not give out such information. Will they do on earnings calls! I find it hard to believe that Continental is not further producing this new field given the price of oil and gas. Particularly since so many economically challenged individuals are royalty owners. I have heard that the company is known for using third-party companies to buy out royalty interests but hope that they are not withholding production just to get royalty interest at a bargain price. I want to believe that Continental has more integrity than this. I received four checks but not on a monthly basis even though production is certainly economically viable. The latest Oklahoma monthly production report shows that the Seaport will only produced 1000 barrels in the last reporting month. I know through earnings calls that each new well in the springboard and Woodford projects produces over 1200 barrels per day! So obviously they are not actively producing in this new field. If someone can help steer me in the right direction to take my complaint to a higher level please let me know. Sincerely. Jay
If you are getting a check, then Continental is producing the well and that is activity. The typical thing is for an operator to drill one well in a section (or multisection) and hold all the leases by production. They will do that in an area of interest until they protect as many leases as they can. CLR has activities all over the oil patch, so they spread their limited drilling dollars where it makes the best economic sense to them as it regards their whole portfolio. Then, if further economics allow, they will come back and do infill drilling. It may be months later. It may be years later. The Seaport is actually performing as expected for that particular reservoir in that particular area. You cannot compare that well to wells in other counties as they are too far away.
Also, remember that operators are coming out of very hard two years, with price drops, loss of personnel and rigs due to drop in demand, Covid sickness, etc. They are just starting to cautiously resume operations again. They have limited capital with which to drill. Their lenders demand that they stay within their cash flow and not overextend. Operators look at their whole portfolio of potential options across many basins to decide where to drill, not just where we want them to drill.
This particular area in Carter county is a relatively new area that is being explored. Other operators in the county are proceeding in a similar style and their behavior is similar. You really do no have a basis for a complaint at this time.
Typical horizontal wells will come online with high pressure and volume. They will decline very rapidly in the first few months of production. This is normal as the first flow comes from the frac area near the bore hole. If you can envision the analogy of a tree root system, the frac makes cracks in the reservoir near the borehole and holds them open with tiny beads or ceramic or sand. Those beads are forced out into the reservoir as far as the pressure from the frac fluid can force them. As a well begins production, the first flow into the pipe rushes back in from those nearby pores-the larger tree roots in the analogy. As time goes on, the hydrocarbons have to travel farther and farther as the pores away from the well bore give up their oil and gas-from smaller and smaller pathways farther and farther away from the borehole like smaller and smaller tree roots. The pressure naturally drops and the volume naturally drops. Those tiny tree roots (pores) can contribute to the oil and gas stream for many, many decades, but at a small volume. Quite normal.
Wow, what a doozy of a message! M_Barnes, kudos on your response!
As a WI partner in both the High Line and Seaport, I can tell you those volumes are unfortunately what the wells are capable of producing. They aren’t being choked back, they just aren’t good wells. It is an exploratory area no where near Springboard or their core Woodford development. If I had to bet, you won’t see future activity in these units any time soon as those are actually not economically viable volumes to support the many millions of dollars it cost to drill and complete these wells…I wouldn’t be surprised if these wells never pay out and Continental is actually taking a loss on them. So, to echo Ms. Barnes, regrettably, your complaint has no merit in this case.
Continental Resources application for 14 & 23- 24 & more Carter Co. Maybe why! Trick of the trade in our leases; Breached stolen forged old application’s need help to recover the above.
The application is for all that was breached in many titles.
NameI am an owner of sec. 1-6-7-12-13-14& more and all are the same breached as in the responders/ owners are left out of the Orders NO EX-(A) the interests shared & & divide with applicant’s the .
If non economic wells, CLR , I would think, would P&A the two wells. But they dont. Why?. Simple. Hold by production. We have a saying in Texas and maybe Okies have heard this. Sh@t or get off the pot! CLR, are you all hat and not cattle here? I dont think so. So do something at these prices or move on!
Continental will likely keep producing the wells to pay them off as they and the royalty owners still make money, just not as much as they hoped for and it will take a longer time. CLR has many other other well activities spread out in many states. They can afford to keep these wells on production, but they may not drill any more in this section if they have other more economic areas instead. Regular part of business.