Replies to This Discussion

Permalink Reply by The_Baron on September 23, 2011 at 3:11

A few facts on MS:

 

I in order to permit a well, a operator (and mainland is the operator on this well) is required to submit a bond or irrevocable letter of credit. Should they walk away , this provides the $$$ for the state to have the well pluged.

Permalink Reply by Paul M. Hess on September 23, 2011 at 4:10

Baron, as you probably know more than I about the MS OGB, can you help in regards to the thread about the potential of no production casing being set? In AR, no record of production casing being run will show up in AOGC records until the completion report is filed. Is that how it is with MS? If so, I would not expect to find any info on production casing until MNLU completes the well and files its report. Thanks!

Permalink Reply by macrobend on September 23, 2011 at 4:21

The well is cased to TD, but there will be a production string (tubing)
placed in the wellbore to produce gas through.

Permalink Reply by Joe Aldridge on September 23, 2011 at 4:49

If that is correct why will it cost 10 million to complete? Production tubing and a packer with a tree won't cost anywhere near that amount. The only way I can see the completion costing that much is if they need to pay some bills that are passed due and are moving those costs into the completion.

Permalink Reply by macrobend on September 23, 2011 at 6:08

I guess the past due bills are included in the completion cost.

Permalink Reply by The_Baron on September 23, 2011 at 5:07

It will be the same, MS is also a little behind the times on their online data access, so even if a report has been filed, it may not show up.

Permalink Reply by dbob on September 23, 2011 at 4:55

Joe,

I was of the understanding that they would need to perf it, frac it, then put in the tubing. I was under the impression the bulk of the costs was in the frac. That said, I seem to recall some rumblings about folks not getting paid.

Permalink Reply by Joe Aldridge on September 23, 2011 at 5:07

dbob,

I think its the latter case. All this other stuff is not that expensive including the frack. Some people didn't get paid and they probably have a lien on the well. Until that's cleared they may not be able to do anything without the lien holders permission. And that would open another barrel of worms.

Permalink Reply by FXEF on September 23, 2011 at 6:50

Joe,

 

Do you have any idea how many barrels of worms the Burkley-Phillips has produced so far?    

Permalink Reply by Joe Aldridge on September 23, 2011 at 7:13

LOL....................

Permalink Reply by jeff boler on September 23, 2011 at 7:36

I cannot imagine officials of the MSO&GB allowing the rig to move off location without production casing in place. That would be pure negligence, especially in the months following BP's accident. After only a few weeks, all the barite would be sitting on the bottom of the hole & 7.2 lb/gal diesel would be applying 8237 psi on a formation with a pore-pressure of over 21,000 psi... I think it's safe to say that the MNLU PR was a mistake & there is production casing (or something) cemented in place.

Permalink Reply by macrobend on September 23, 2011 at 8:01

Jeff, I got cormation from them that a production casing was set up to TD.

 

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