Timeline: From Rig Set-Up to Finished "Christmas Tree"??????

Due to the initial limited number of rigs. About how long does it take to set the pad, bring in the rig and drill, then set-up the final gas "Christmas Tree" and move on to another site. I'm trying to determine how many acres that the current big players can sensibly lease and service within the three year lease terms???

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Permalink Reply by Moe on July 29, 2008 at 13:53
Thoughts???
Permalink Reply by JW on July 29, 2008 at 14:09
I have some concerns that the leasing will slow down due to the fact that I don't feel that they can get enough of the wells drilled to hold leases. This is the same concern that everyone has I'm sure. What are the chances of them drilling verticle wells that will produce enough gas to be considered production? Can they come back later and redrill those horizontally? This may be create a lot of additional costs but if they only have to do that for one well per section, it would be much cheaper than paying the second round of lease bonuses. I am sure that 3 years from now people will turn their nose up at $25k and 25% royalties. I can only assume that by them paying $20k per acre on land that they potentially will not be able to drill in 3 years, we have not come close to the true value of this land.

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