Recently received an AFE from Goodrich Pet. for 2 CUL's, Graham 15&10HC 1-ALT & Graham15&10HC 2-ALT & curious if others here might have received a sim. AFE?
I've declined the opp. to be a WI owner previously, always went the OR route except a single WI & OR in CHK 634404 Talbert 10-14-16 H-1 plus a # of other OR's in secs. 10 & 15. Only mentioned as I may go WI this time & also trying to determine how these 2 CUL's may/may not impact my other OR's in secs. 10 & 15.
A little explanation may be in order here. Mr. Gilster is a lessee, not a lessor in one or both units with the proposed wells. AFE stands for Authorization For Expenditure. An AFE is a document that lays out the operators projection for well costs, drilling and completion. The lessee may approve the AFE and pay their prorated share of the well costs or go "Non-Consent". Going non-consent involves not paying for the prorated well costs and not receiving any revenue from the well until it has returned at least 200% of the cost to drill and complete. That's a very general opinion on a law that has many exceptions based on specific details. Anyone who wishes to dig deeper may Google Louisiana well risk penalty.
Did I get that right,Michael?
Mi amigo you nailed it as always but it’s what I’ve come to expect of an SME (subject matter expert) like yourself.
My apologies for not ‘splaining things better but since you’re here would you care to comment on the quality of rock in secs. 10&15? Also how might these 2 proposed CUL’s (cross unit laterals) impact already producing wells in those sections, additional revenue streams created for existing royalty owners there, set me/us straight por favor.
Good rock. The Bethany-Longstreet Field is a prime portion of the fairway. The question that comes up most often in Bethany-Longstreet is, does a specific location have prospective Bossier reserves in addition to the very good Haynesville interval? Section 15 - 14N - 16W is in a gray area but of course that economic reserves line varies up and down going west to east. Pretty much all of the 13 north townships should have economic Bossier but it would take some digging to get an idea regarding economic Bossier that far north in 14 north. It's difficult to estimate frack interference possibilities. Usually companies will shut in "parent" wells and allow pressure to build before fracking "child" wells in close proximity. I think that frac hits (well communication) are more common than what is found in the public record or that companies will admit to. A subject for reservoir engineers, not a landman.
Per SONRIS's last report on 2 November, completion/fracking began on both 001 & 002-ALT's but no reports filed since that date. Will the next SONRIS report be filed when both wells have finished their frac. procedures & are producing, set me straight Skip as that sequence seems a tad simplistic.
With 97 and 99 stages to frac and only two reported complete, there might be another report before an extended wait for IP results. The completion ops could take a while.
TY much, my bad for not listing the # of stages per well & an early Happy Thanksgiving to you.
And to you, Michael.