Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on September 23, 2010 at 10:20

The fault in Section 26 appears to run generally west to east quite near the north line. This is near the surface location which has been situated a little further south than normal but probably represents an effort by SWEPI to stay out of the fault. I guess they missed. Or the fault is located a little further south than my map shows. The Bottom Hole Location is near the south east-west line. At a guess I'd say the horizontal well bore transects the fault in a relatively small area near the heel of the lateral. Because of the surface location this is a shorter than normal lateral (3914.61'). If the lateral is only one or two frac stages less than the 12 to 14 in normal ~4600' lateral, I would expect only a small reduction in productivity. I don't think we are talking anywhere near 2/3 of the section here but we'll have to wait for the completion report to know for sure.

Permalink Reply by La Bonne`Chance on September 23, 2010 at 10:40

Thanks Skip, I appreciate your reply. I wonder why seismographic info. did now show this.

Permalink Reply by Skip Peel - Mineral Consultant on September 23, 2010 at 10:52

I imagine it did. From the well plat it seems obvious that SWEPI was siting the surface location in an attempt to avoid the fault and still drill a reasonable length lateral. The fault is well known and appears on numerous maps. Every fault is different and the operators will deal with them in a number of ways. At least this one didn't run through the middle of the section. Some lessors have knee jerk objections to larger than 640 acres units but unless such is allowed when dealing with faults, their royalty income will suffer accordingly.

Permalink Reply by La Bonne`Chance on September 23, 2010 at 11:05

Thank you
Skip!! I wonder what the total acreage in section 26 is?

Permalink Reply by Skip Peel - Mineral Consultant on September 23, 2010 at 11:42

The acreage is not on any plat or application that I know of but it appears to be a standard governmental section so it should be close to 640 acres.

Permalink Reply by La Bonne`Chance on September 24, 2010 at 7:11

THanks again!!