Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on October 7, 2013 at 14:17

Shirley, we need to know more information, like where the property is located in what Section-Township-Range?  If you  are in Texas then provide the survey information. I really don't understand anything about hiccups and running smoothly?

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Permalink Reply by Oklahomachic on October 7, 2013 at 14:45

An analyst is done before a WO is started and then the AFE's are sent to each interest owner... At times they come across a WO that has mud etc.... (or problems that result in 3x times the amount of a normal cost of a WO.) In my case the WO is average 75,000.00.  The hiccups I am referring to is it resulted in 2-3 that amount of 75,000.00.  

Is there not an average cost for a WO?

300% for not electing, but its a crap shoot if you WO the wrong well....

AR is where the property is at.....do not feel comfortable disclosing where... sorry...

Am I clear as mud :) 

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Permalink Reply by tony allen on October 9, 2013 at 6:59

Shirley,

Are you sure you don't have a Working Interest in the well? Most mineral owners do not receive an AFE on a workover  for a previously producing well. As far as cost, I have mineral interest in a production unit that is doing 3 workovers totaling  $1.2 million for all 3 wells. I did not get the AFE but the working interest owners did. I noticed you asked about selling minerals on another thread. They may be trying to buy your WI. That is happening quite often in S. Ar. now.

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Permalink Reply by Spring Branch,mineral owner on October 10, 2013 at 7:08

I believe Shirley does have a small working interest in the field which she inherited.  I am not aware that Bonanza Creek Resources, the Operator, is making unsolicited offers to buy working interests, though I suppose it is possible.

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Permalink Reply by Oklahomachic on October 11, 2013 at 8:44

So do you have a WI in this area? Yes, I inherited in Cotton Valley among several more, my Grandfather and Father were both Landman. Both deceased. I kinda beg to differ on what is small interest...lol I have had to hire a Landman and a attorney on this to handle my affairs...the growth in the area is going strong....from 10 spacing now to 5 spacing..WO being done and new wells opening...looking at over a 1000 acres..
Unfortunately, upon my Dads death this was dropped into my lap..I feel I'm on the right track now that I know someone that can see through all this muddy water. In my opinion no non-Landman (I'm sure that is not a word.) should ever be in a WI, because I have been very confused...

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Permalink Reply by Oklahomachic on October 11, 2013 at 8:55

That post to Norma? Unrelated to
my issue..not sure where or why that ventured into that direction..I definitely know for a fact that BC does buy WI...just an FYI..

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Permalink Reply by Dion Warr, CPL on October 7, 2013 at 17:50

Shirley:

Yep... Clear as mud. I'm not sure there is a such thing as a "plain old vanilla workover".

It would depend on what the operator is looking to do. Are they going to squeeze and reperf? Do some sort of treatment on the well? Sidetrack? Cleanout? Repair? A couple of those? You could be anywhere between $50K and a $1MM. One needs to know what will be done or attempted to be able to better answer the question. Where and how deep would help too, as that could have an impact on the equipment used.

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Permalink Reply by Oklahomachic on October 7, 2013 at 21:38

It states that it is a clean out... so no, no-one knows how much a workover would be correct roughly..  if so that's fine, I thought there may be a estimated cost....  1M? That is more like a new opening of a well..... 

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Permalink Reply by Spring Branch,mineral owner on October 8, 2013 at 3:21

I believe the workovers that shirleysewell is referring to are taking place in the Arkansas Dorcheat -Macedonia Field and consist primarily of adding new Cotton Valley Pay zones to existing wells.  Additionally there have been several workovers that consist of attempting to bring back into production wells that have not produced in a long time because of mechanical issues and/or were not economic at $15 oil.  Bonanza Creek Energy out of Denver is the Operator. 

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Permalink Reply by Dion Warr, CPL on October 8, 2013 at 4:19

Shirley:

Sounds like an pretty extensive cleanout!  However, if as SB said, this is a well with some fairly serious rehab to be done (chemical, mechanical, formation debris / sediment removal), I wouldn't suppose it's out of the realm ($200K).  If they plan to add/delete a couple of perfs that would add in to the costs, too.

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Permalink Reply by CB on October 11, 2013 at 8:12

I know this might be comparing apples to oranges,but.  I have WI in two wells in very shallow water (6') in S La which were recently worked over. One WO had an AFE of $2,000,000, landed up costing $4,000,000. The other had an AFE of $600,000, spent $2,000,000 and they junked the well.

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Permalink Reply by Oklahomachic on October 11, 2013 at 8:46

I know right...you just don't know until you get down there..

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