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Permalink Reply by Roger Pruitt on August 25, 2008 at 1:02

A well is considered on production when it is selling gas down a gas line or producing oil to a tank battery. From what I've seen on Sonris, is that the reports are usually a month old depending when you look at them. The report halway down will give a synopsis of activity and a little further down will be a spot for the production of the well by the month, oil, gas, condensate etc.

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Permalink Reply by Dion Warr, CPL on August 25, 2008 at 1:45

Tim:

The spud date will have very little to do with the actual production date. Actual production date reporting usu. will come in the well reports; however, with the current state of "tight holes" in the area, some companies will hold onto their data as long as possible (incurring fines in some cases) just to keep you from knowing vital well info (well test, allowable, perfs, etc.), and by extension when the well actually went into production.

From what I've seen, the verticals are usually ready to be produced in 30-45 days from actual spud date. The horizontals run about a 30-60 days longer if the drill crew has little or no problems turning the bit to horizontal, although as the prep, kickout, and frac procedures becomes a little more routine, this time should shorten some.

Keep in mind from a lease standpoint that from the time the bit touches the earth (spud) to the time the well is completed (in conforming with continuous drilling or operations), virtually any lease is going to be held (even if drilling through the end of the primary term) and as long as the shut-in payment is made in a timely manner after well completion (which may be shown in the scout report at "36 - Waiting on Pipeline"), any such lease is going to be "made good" irrespective of the actual production date.

Apologies if this is more information than what you had asked for.

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Permalink Reply by Tim Boyet R3 on August 25, 2008 at 2:50

No the more the better. My lease has a pugh clause stating the well has to in production to hold the lease.

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