Replies to This Discussion

Permalink Reply by onesock73 on June 23, 2012 at 11:01

If a well is producing good. What are the chances another unist is formed directly ajoining it. Or will it be spaced out more.

Permalink Reply by Skip Peel - Mineral Consultant on June 23, 2012 at 11:07

The chances are generally good.  However units are likely to be formed based on the expiration of lease terms.  In other words operators may drill lands where leases are closest to the end of the primary term.  That way lessees do not have to pay extension bonuses.

Permalink Reply by onesock73 on June 23, 2012 at 11:11

Looks like I am just outside the Ash unit. Missed it by few hundred yards.

 

 In other words operators may drill lands where leases are closest to the end of the primary term

But the lease is getting close to the end of the primary term.

 

Thanks this info helps.

Permalink Reply by Skip Peel - Mineral Consultant on June 23, 2012 at 11:20

That improves the chance of getting a well sooner.

Permalink Reply by Bernell McGehee on June 26, 2012 at 8:12

Okay...learned today that the Joe Jackson was held up for a few days "cleaning out the hole," but is now back drilling.  Apparently somewhere around 15,000 feet.

 

Was also told the Weyerhauser issue has been resolved and they are back drilling, also.

Permalink Reply by Blaine S Lusk on June 26, 2012 at 9:15

that's good news Bernell.

Link to an interesting article for a slow news day.

http://www.zerohedge.com/print/449951

Permalink Reply by Andrew on June 23, 2012 at 14:46

Encana announced they intend to drill 12 more wells in the play this year. At that rate they will probably need another rig or two to handle the work. Hopefully they can keep the decline rate gradual and replicate the success of the Anderson wells. They are likely to drill more wells in pairs like the Anderson and Ash wells because it keeps their service costs down when they complete.

Permalink Reply by Bernell McGehee on June 23, 2012 at 17:29

They said they planned to "complete" 12 wells in 2012.  IF you include the three previously completed and add the two they are drilling, that would be 5 completed by late August with 7 more to go.

Yet, one of their schedules showed only two rigs in the TMS.  

I don't see any reasonable way they can drill and complete 7 wells from August to December with just two rigs.  It only makes sense that they will have to bring in at least one more rig to get to 12 this year...and they need to get that third rig on in here soon.

We shall see.

Permalink Reply by Blaine S Lusk on June 24, 2012 at 10:38

Here's a vid from Goodrich. Sorry if it's been posted already.

http://www.youtube.com/watch?v=QwdjyLdSBFg

Permalink Reply by onesock73 on June 24, 2012 at 12:32

Thanks for the link.

 

Sounds like they want to develope wells on all the acreage they hold in leases. Is this correct?

Permalink Reply by tc on June 25, 2012 at 1:46

As a stock owner of Goodrich what I like is that they learned from the Haynesville leasing disaster and went to large lease blocks with continuous developement drilling provisions.  They can hold 50,000 acres with drilling only 1 well every 180 days.  In the N. LA. Haynesville to hold 50,000 acres you may have had to drill 80 wells in a 3-5 year timeframe before the leases expired.  That drilling flexibility is critical in todays volatile O&G and capital markets.  I also like that they want to sit down with Encana and create a sensible developement program. 

I think that Goodrich will drill a test well on all their islands of acreage blocks, but some of those islands are on the fringes of the current TMS activity, and time will tell if this outer area is economical to drill

Permalink Reply by Bernell McGehee on June 25, 2012 at 3:03

Eventually, I believe they will figure out how to get oil over a much wider area than the current target.  The knowledge gained by these exploration companies to make the prime areas more profitable will then allow them to make marginal areas profitable.  I don't believe this is a short term deal at all. 
The Goodrich executive seemed pleased with where they are and I can't say as I blame him.

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