W&T is following through with their statement that they are planning on drilling two horizontal wells in Terry County. As of yesterday, the RRC had approved two horizontal wells in the area along 213 west of Wellman. Hopefully these will prove more productive and generate more activity.
Thanks for the update on W&T. I went on Concho Resources website to view their second quarter results. They completed their first Horizontal well in Terry County (Red Headed Stranger) and are going to be drilling a second one. Here is a portion from their conference call with CEO Timothy Leach. Here is the link to the full transcript if you would like to read more. The references about Terry County are on pages 1 and 6 of the transcript.
http://seekingalpha.com/article/796511-concho-resources-ceo-discuss...
During the second quarter, we completed our first horizontal Cline well in Terry
County in the Northern Midland Basin and plan on spudding our second horizontal
Cline latter this year.
Operator
Your next question will come from the line of Irene Haas with Wunderlich Securities.
Irene Haas- Wunderlich Securities Inc.
Hi, I have two questions. Firstly, in the Midland basin, you are active in Terry County. Just kind of want to know the competitive landscape, who else is around. And I assume your first well is Red Headed Stranger and has it hit 30 days yet. And the second well, you’re going to drill, would you consider drilling more wells in Terry County? So that’s my first question. The second one is Pecos County. My quick question for you is, do you like it as much as Reeves County. And then, how do you pick zones that you that you like sort of 1000 plus for the feet of section?
That was more than two questions, I think Irene.
Irene Haas- Wunderlich Securities Inc.
Okay.
All right, let’s go, Terry County. We are being pretty guarded on what we say about that for competitive reasons and that is just early. So now our first well hasn’t been on for 30 days. The competitive nature of it. There are operators from very small independents to major oil companies that have acreage in that play.
Hi. I am just curious. When they say they are drilling horizontal wells, does that mean they are fracking outward from the hole? And if horizontal wells are bringing in more revenue now than the old style vertical wells, then why are companies still drilling just vertical wells?
In looking at the Texas Railroad Commission Map, the location of the wells is not yet posted on that map. There are a couple of wells that were permitted in 1980 and 1990 that appear on the map, but they were never completed.
Hi Craig. Where is the Red Headed Stranger located in Terry County? Do you have a survey or better yet a block number? I think according to railroad commission requirements, they have to start posting on the Texas rr site some completion data within a certain time of the completion.
Craig said:
Thanks for the update on W&T. I went on Concho Resources website to view their second quarter results. They completed their first Horizontal well in Terry County (Red Headed Stranger) and are going to be drilling a second one. Here is a portion from their conference call with CEO Timothy Leach. Here is the link to the full transcript if you would like to read more. The references about Terry County are on pages 1 and 6 of the transcript.
http://seekingalpha.com/article/796511-concho-resources-ceo-discuss...
During the second quarter, we completed our first horizontal Cline well in Terry
County in the Northern Midland Basin and plan on spudding our second horizontal
Cline latter this year.
Operator
Your next question will come from the line of Irene Haas with Wunderlich Securities.
Irene Haas- Wunderlich Securities Inc.
Hi, I have two questions. Firstly, in the Midland basin, you are active in Terry County. Just kind of want to know the competitive landscape, who else is around. And I assume your first well is Red Headed Stranger and has it hit 30 days yet. And the second well, you’re going to drill, would you consider drilling more wells in Terry County? So that’s my first question. The second one is Pecos County. My quick question for you is, do you like it as much as Reeves County. And then, how do you pick zones that you that you like sort of 1000 plus for the feet of section?
That was more than two questions, I think Irene.
Irene Haas- Wunderlich Securities Inc.
Okay.
All right, let’s go, Terry County. We are being pretty guarded on what we say about that for competitive reasons and that is just early. So now our first well hasn’t been on for 30 days. The competitive nature of it. There are operators from very small independents to major oil companies that have acreage in that play.
Robert
It is Block 4x Section 11 EL&RR RR CO 12.3 miles NE of Brownfield
Robert Tilden said:
Hi Craig. Where is the Red Headed Stranger located in Terry County? Do you have a survey or better yet a block number? I think according to railroad commission requirements, they have to start posting on the Texas rr site some completion data within a certain time of the completion.
Craig said:Thanks for the update on W&T. I went on Concho Resources website to view their second quarter results. They completed their first Horizontal well in Terry County (Red Headed Stranger) and are going to be drilling a second one. Here is a portion from their conference call with CEO Timothy Leach. Here is the link to the full transcript if you would like to read more. The references about Terry County are on pages 1 and 6 of the transcript.
http://seekingalpha.com/article/796511-concho-resources-ceo-discuss...
During the second quarter, we completed our first horizontal Cline well in Terry
County in the Northern Midland Basin and plan on spudding our second horizontal
Cline latter this year.
Operator
Your next question will come from the line of Irene Haas with Wunderlich Securities.
Irene Haas- Wunderlich Securities Inc.
Hi, I have two questions. Firstly, in the Midland basin, you are active in Terry County. Just kind of want to know the competitive landscape, who else is around. And I assume your first well is Red Headed Stranger and has it hit 30 days yet. And the second well, you’re going to drill, would you consider drilling more wells in Terry County? So that’s my first question. The second one is Pecos County. My quick question for you is, do you like it as much as Reeves County. And then, how do you pick zones that you that you like sort of 1000 plus for the feet of section?
That was more than two questions, I think Irene.
Irene Haas- Wunderlich Securities Inc.
Okay.
All right, let’s go, Terry County. We are being pretty guarded on what we say about that for competitive reasons and that is just early. So now our first well hasn’t been on for 30 days. The competitive nature of it. There are operators from very small independents to major oil companies that have acreage in that play.
Horizontal means they drill down to a specified depth and then directionally turn the drill bit and go horizontally for several thousand feet through the shale. So if you have 600-feet of pay zone in the vertical well, you can get up to several thousand by drilling horizontally with the zone. Guess they thought the wolfcamp in Terry county would produce better than it has. Vertical wells are much less expensive than horizontal wells.
Robert Tilden said:
Hi. I am just curious. When they say they are drilling horizontal wells, does that mean they are fracking outward from the hole? And if horizontal wells are bringing in more revenue now than the old style vertical wells, then why are companies still drilling just vertical wells?
In looking at the Texas Railroad Commission Map, the location of the wells is not yet posted on that map. There are a couple of wells that were permitted in 1980 and 1990 that appear on the map, but they were never completed.
Oh okay. Thanks Craig. I see where it is now. There is also another well permitted in the area about 2.3 miles southwest of Red Headed Stranger near the north end of Rich Lake. That well was permitted in Feb. 2012 to a company called Raw Oil and Gas out of Lubbock. I don't know if that company has plans in the near future to start drilling there. Good to see that there is some interest in actually starting to drill in northern Terry County. Thanks again.
Craig said:
Robert
It is Block 4x Section 11 EL&RR RR CO 12.3 miles NE of Brownfield
Robert Tilden said:Hi Craig. Where is the Red Headed Stranger located in Terry County? Do you have a survey or better yet a block number? I think according to railroad commission requirements, they have to start posting on the Texas rr site some completion data within a certain time of the completion.
Craig said:Thanks for the update on W&T. I went on Concho Resources website to view their second quarter results. They completed their first Horizontal well in Terry County (Red Headed Stranger) and are going to be drilling a second one. Here is a portion from their conference call with CEO Timothy Leach. Here is the link to the full transcript if you would like to read more. The references about Terry County are on pages 1 and 6 of the transcript.
http://seekingalpha.com/article/796511-concho-resources-ceo-discuss...
During the second quarter, we completed our first horizontal Cline well in Terry
County in the Northern Midland Basin and plan on spudding our second horizontal
Cline latter this year.
Operator
Your next question will come from the line of Irene Haas with Wunderlich Securities.
Irene Haas- Wunderlich Securities Inc.
Hi, I have two questions. Firstly, in the Midland basin, you are active in Terry County. Just kind of want to know the competitive landscape, who else is around. And I assume your first well is Red Headed Stranger and has it hit 30 days yet. And the second well, you’re going to drill, would you consider drilling more wells in Terry County? So that’s my first question. The second one is Pecos County. My quick question for you is, do you like it as much as Reeves County. And then, how do you pick zones that you that you like sort of 1000 plus for the feet of section?
That was more than two questions, I think Irene.
Irene Haas- Wunderlich Securities Inc.
Okay.
All right, let’s go, Terry County. We are being pretty guarded on what we say about that for competitive reasons and that is just early. So now our first well hasn’t been on for 30 days. The competitive nature of it. There are operators from very small independents to major oil companies that have acreage in that play.
good question may be about terry and what is going on with the possible buy out of Yates buy concho
Robert Tilden said:
Oh okay. Thanks Craig. I see where it is now. There is also another well permitted in the area about 2.3 miles southwest of Red Headed Stranger near the north end of Rich Lake. That well was permitted in Feb. 2012 to a company called Raw Oil and Gas out of Lubbock. I don't know if that company has plans in the near future to start drilling there. Good to see that there is some interest in actually starting to drill in northern Terry County. Thanks again.
Craig said:Robert
It is Block 4x Section 11 EL&RR RR CO 12.3 miles NE of Brownfield
Robert Tilden said:Hi Craig. Where is the Red Headed Stranger located in Terry County? Do you have a survey or better yet a block number? I think according to railroad commission requirements, they have to start posting on the Texas rr site some completion data within a certain time of the completion.
Craig said:Thanks for the update on W&T. I went on Concho Resources website to view their second quarter results. They completed their first Horizontal well in Terry County (Red Headed Stranger) and are going to be drilling a second one. Here is a portion from their conference call with CEO Timothy Leach. Here is the link to the full transcript if you would like to read more. The references about Terry County are on pages 1 and 6 of the transcript.
http://seekingalpha.com/article/796511-concho-resources-ceo-discuss...
During the second quarter, we completed our first horizontal Cline well in Terry
County in the Northern Midland Basin and plan on spudding our second horizontal
Cline latter this year.
Operator
Your next question will come from the line of Irene Haas with Wunderlich Securities.
Irene Haas- Wunderlich Securities Inc.
Hi, I have two questions. Firstly, in the Midland basin, you are active in Terry County. Just kind of want to know the competitive landscape, who else is around. And I assume your first well is Red Headed Stranger and has it hit 30 days yet. And the second well, you’re going to drill, would you consider drilling more wells in Terry County? So that’s my first question. The second one is Pecos County. My quick question for you is, do you like it as much as Reeves County. And then, how do you pick zones that you that you like sort of 1000 plus for the feet of section?
That was more than two questions, I think Irene.
Irene Haas- Wunderlich Securities Inc.
Okay.
All right, let’s go, Terry County. We are being pretty guarded on what we say about that for competitive reasons and that is just early. So now our first well hasn’t been on for 30 days. The competitive nature of it. There are operators from very small independents to major oil companies that have acreage in that play.
rig is standing west on 213 started drilling day or so day ago horiz to north has pooling agrement
This is from the presentation that W&T Offshore gave this week:
Background
~10,800 net acres
Geologically similar to Yellow Rose
In the exploration and delineation phase
14 vertical exploration wells completed
Current Activity
Two horizontal wells planned for 2
nd half of 2012
Initial horizontal, the Holmes 23-4, is currently
drilling with a planned ~7,000’ lateral and 24
stage frac job. Estimated cost ~ $7 million.
Stopped by the rig on 213 yesterday afternoon. Spoke with the geologist onsite. he said that this well and the one east are going to determine whether or not W&T continues in Terry County. Basically if these two wells produce they will continue in the area. if the results are similar to the 14 vertical wells already drilled, they will not. Lets hope for better results.