Replies to This Discussion

Permalink Reply by Jack Blake on November 24, 2010 at 3:05

How long has the well 237344 been producing. With all the wells starting overpressured it must be a pretty dramatic decline curve. 500 mcf/d ain't shit! With only 1264# the well will soon not flow against P/L backpressure without compression.............
500 mcf/d at $4/mcf at 25% cost free royalty is about 78 cents per acre per day for the landowner.
So for 20 acres the landowner would get aout $468.00 per month before taxes and about $300.00 after taxes.
ngpricessoarto$10/mcfwastherallyingcryoftheday

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Permalink Reply by Jack Blake on November 24, 2010 at 3:16

Now I have a question. Al the zeros mess me JB up.
Jacks calculator only goes up to 99,999,999
If the well has made 2.7bcf at $4/mcf gas and 25% cost free royalty how much total money did the landowner get per acre before taxes?
hhhmmmmmmmmmmmmmmmmm said Jack Blake

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Permalink Reply by Henry on November 24, 2010 at 4:15

By my calculation, $4200 per acre.

(2,700,000,000 cubic feet) X ($4/1,000 cubic feet) = total revenue from well = $10.8 M

Divide that by 640 acres, to get total revenues of $16,875 per acre.

Give the landonwer 1/4 of that to get about $4200 per acre in royalties.

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Permalink Reply by little ole 1st grade teacher on November 24, 2010 at 11:34

Hey, I could live with $4200 per acre in royalties....How do we get someone to notice that we need to be leased again????

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Permalink Reply by Lee on November 25, 2010 at 5:17

Thanks for the cumulative and current production figures for this early well. Are you surprised by the extent of the second year decline? Given the current total production (2.7 BCF) and the current production rate (500 MCFD), this well will have to continue to produce at that rate for another 21 years to reach Petrohawk's claimed "average" well EUR of 6.5 BCF. That is based on the shaky assumption that the current production rate holds steady for another two decades. With an initial production of 17+ MMCF, this well would seem to be safely in the "average" category, so what gives? Is my math wrong or are these numbers suggesting that Arthur Berman was right when he said most of these wells would not reach the EUR's claimed by the companies? Please tell me "no" on the latter and thanks again.

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Permalink Reply by w.r. frank on November 24, 2010 at 3:21

Thanks Jay. I will probably sign up after Thanksgiving.

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