Replies to This Discussion

Permalink Reply by Terry L. Antee on September 8, 2009 at 5:43

My guess is they are just getting more science by flowing the well and taking pressures, gas liquid ratios and gr. If they move in a rig to drill the horizontal then get excited.

Permalink Reply by Allen67 on September 10, 2009 at 13:00

Im wondering if they are backing off of the horizonal by doing this flow test. This is definately something I know nothing about. Does anyone know what this might mean? And also they havent done anything yet so they can change what they do anytime

Permalink Reply by Skip Peel - Mineral Consultant on September 10, 2009 at 13:42

Allen. What's the current situation regarding leases filed of record with the Clerk of Court for the area of this well?

Permalink Reply by Allen67 on September 11, 2009 at 6:21

They are filing a tremendous amout right now. Borders got their butt in a crack by not filing the leases they got. They held the leases for 7-8 months before filing them. Some landowners sold or transferred ownership before the lease was filed! In Arkansas that means the lease is void if Im not mistaken. Apparently once you get a lease signed you are supposed to file it immediately to avoid this problem!!!!!

Permalink Reply by Skip Peel - Mineral Consultant on September 11, 2009 at 7:06

Allen, I am not sufficiently familiar with AR. mineral law or civil laws governing validity of conveyance documents filed or unfiled. LA. is a "race" state. First one to record a lease has the right to develop that/those tracts. In the case of a company executing the earlier of the leases but failing to record it for public record before a later effective dated lease being recorded, they would not hold a valid lease. They would however have a good claim for a lawsuit against the Lessor. And could possibly tie up the tract in litigation for some protracted period of time. Borders was negligent in waiting 7-8 months. The royalties on the recorded leases, the term lengths and the section-township-range in which the leased tracts are located would be valuable information to post for the mineral owners of this portion of S. AR.

Permalink Reply by Allen67 on September 11, 2009 at 8:27

Arkansas is a race state also. The only one interested in this property is Borders . They dont want to lose it, but court may be there only option. Although tying it up in court will not set well with E.O.G. I assume they will be hot! I know they value this property and I assume it must have significant oil or gas under it. Now they cant get it without settling this. They are probably going to have to pay to release it again!! Thats the quickest answer.As far as leases go, the royalties here vary. Nothing like LA. Typically 20% on a 3 year lease with 2 yr option. Not great but will do until something big happens( if it ever does)

Permalink Reply by Allen67 on September 9, 2009 at 10:12

I haerd they were putting in a pipeline on the state line, which isnt too far but as of right now I believe the closest is in Bolinger, which is just north of Plain Dealing . That would make it about 12-15 or more miles away.

Permalink Reply by Aubrey C. Sanders, Jr. on September 10, 2009 at 11:55

Allen67,

I would guess you hit the nail on the head! I enjoyed talking to you by phone while I was down there. Got back to Phoenix last nite.

Permalink Reply by Allen67 on September 10, 2009 at 12:57

Hello Mr. Sanders. Glad you had a safe trip and hope you caught alot of fish while you were here!!!

Permalink Reply by Terry L. Antee on September 16, 2009 at 9:55

The latest info I have is that the well is low perm and porosity and will need a long horizontal and big fracs to see if it works. Like I said before get excited if a horizontal rig moves on and then wait and see what a frac does. This well drilling horizontally may be a dificult well because of lost circulation due to the open fractures. Generally oil in a tite formation is not good for EUR's (estimated ultimate recoveries)

Permalink Reply by Aubrey C. Sanders, Jr. on September 17, 2009 at 14:24

Consider this. When you drill a 12,000 foor deep well vertically you may have a potentially productive pay zone of say 100 feet and that may be tight. Now consider the fact that if you can find that optimal zone and drill a lateral say 4,000 foot long. you now have penetrated 4,000 feet of potentially productive zone instead of 100 feet. Thus the horizontal well may be the equivalent of 10 or more verical wells. It all depends on the drainage radius of each well. Many wells may have drainage radius of 600 feet or even less.

Permalink Reply by Skip Peel - Mineral Consultant on September 17, 2009 at 14:50

I'm keeping up, Electro. And I'll believe in accurate extrapolation when someone proves it to me. Not in general, not in theory but as a specific projected IP proven by a completed well. I doubt even those who do it for a living have a very impressive record of accuracy. LOL!

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