We finally got a check for June and July. Nice surprise. As NMOILBOY said they produced a lot of water in the first few months. It looks like the three “shallow wells” are increasing oil output monthly as the water flow eases. Still below the 400BPD per well estimated in the applications. Maybe they will come up a bit in August. I hope we are not yet at the peak month and starting the steep decline typical of horizontal wells. The “deep well”’, 90H, is still producing a lot of water, very little oil, and virtually no gas. The water flow was over 100k barrels three months in a row. I am hoping we see oil flow somewhere near the 400BPD estimate in the application, just take a bit longer to get there. I am intrigued by this well. It seems a like Spur is testing the Lower Yeso to see how productive it is. I think they have approval for a fifth well if they think it’s worth it to drill another deep well. Maybe the experienced hands have more informed thighs about this than I do.
I got one also. I’m hoping it is just the beginning and life changing. I can dream. Lol. I know they decline fast but here’s to hoping.
Can you please post the section township and range for the Trudy wells? We believe these are the wells that we passed on SPUR’S lease offers and failed negotiations.
Thank you.
Never mind posting the s/t/r info. I looked up online. I was mistaken.
I have a small interest in the Spur South Boyd wells to the SE of there. It’s probably slightly better rock but should be comparable behavior. The peak oil rate occurred about 100 days after they started flowing back.
So:
Month 3-4: peak rate Month 12: 40% of peak rate Month 24: 20% of peak rate Month 48: 13% of peak rate etc…
Average well (of 5) something like this below.
Well that’s sad. I was hopeful for a little longer return…
Eye of the beholder I guess. If you were expecting a money tree, then sure, this isn’t it. But it’s pretty good IMO.
You’ll make > $25k/NRA. But yeah in 5 years you are going to be getting 10% of the highest month. That’s the modern oil business for everyone involved. It’s a lot better than having no minerals.
I posted this before, but here is projected cash flow from a single NRA in a 320 acre unit with 4 wells. From the peak onward. $75 oil. Scale to however many NRA you have.
Thanks for the info. Very helpful, as usual! So it looks like August or September will be peak months. July oil sold at $74.20 (mostly). Looks like August price might be $80-82 or so and September might be $85-86. Even if August volume isn’t higher we should get about 10% more. September could be up 5% or so from there. Not so bad! I am glad to have peak production at these higher prices.
One question: What do you make of the “deep well”, 90H? I think it was the last well drilled. So far it has flowed back a lot of water, more than any of the other wells, but not much in oil or gas. It seems like Spur was testing the lower Yeso, as if they weren’t sure about its potential. Or is there some other reason for drilling it? Thanks?
Great info as usual @NMoilboy!
Some sort of cartoon plus info from an old Percussion deck. Below. South Boyd wells and where they said they were going to drill the Trudy wells. For the South Boyd wells…Percussion (now Spur) drilled a Glorieta well (14h), its been ok, but very gassy. Had the best early oil but dropped off very rapidly. The 18H and 19H have been the best wells. The water cut (barrels of water per barrel of oil essentially) gets higher as you go deeper (in our wells). The Boyd 13H and 20H are decent, but the 20H is the worst of the bunch (50% of the 19h) and makes the most water.
So I’d guess your Trudy 90H will be similar to the Boyd 20H. Fine, and should make oil, but not as good as the other wells and thus may take longer to “dewater”. Assuming whatever is going on in Sec 7 correlates with what is going on in Sec 34. I would guess Sec 34 is better, but I’d expect wells to behave similarly in relation to each other in both places.
Our “deep” 20H well has made 213,000 barrels of oil. Still makes 30 bopd. I’m sure at $80 oil that makes Spur a good amount of money.
I did forget the Trudy wells are 1.5 miles long. So in theory the wells should be 1.5 times better than my 1 mile wells. But a single NRA only gets 2/3s as much value so the $/NRA chart should be unchanged.
Hi Rick - where did you find this? I am fairly new to this
This is actually Justinfo. I did not do this. NMoilboy is the person who did this. He has access to a lot of info bc he is in the business. As a newbie myself I have learned a huge amount about the business thanks to his generous sharing of information and his patience with my rookie questions.
IF you were asking me, I get a lot of this info from Enverus or IHS which are paid services. I get access through work. Which makes it easier to know what is going on in places where I own things outside of work. A number of other people on this site have similar access it would appear, but its not many.
The NMOCD has all the info you need in it somewhere, its just the paid services take that info and put it in useful/organized formats where it is far far easier to analyze (and maps, etc).
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