Replies to This Discussion

Permalink Reply by Les Bamburg on April 13, 2012 at 3:16

Tom, it is highly unlikely that Chesapeake plans to perform an additional fracture stimulation since the original job addressed the entire lateral.

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Permalink Reply by Spring Branch,mineral owner on April 2, 2012 at 10:16

Depletion means used up or drained  through production.

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Permalink Reply by Skip Peel - Mineral Consultant on April 2, 2012 at 10:21

From the first day of production the formation pressure drops and the amount of hydrocarbon produced begins to decline.  That's one reason we like to see high pressures in Haynesville well Initial Production reports.  Obviously the higher the initial pressure the longer the well life and generally the greater the Estimated Ultimate Recoverable (EUR).  Operators can manage the rate of depletion by utilizing a choke but that is only slowing the natural progression of depletion.  Oil wells have lower formation pressures and typically flow for a short period before being placed on a pump that provides artificial lift.  Operators try to manage formation pressure to increase the amount of recoverable hydrocarbon.  Theoretical  recovery factors vary from 5% to 75% for oil reservoir drives and from 60% to 85% for gas reservoir drives.

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Permalink Reply by Les Bamburg on April 13, 2012 at 3:12

Skip, formation pressure is related to depth and other factors so an oil reservoir can have the same pressure as a gas reservoir at a similar depth.  The reason for artificial lift for oil wells is the higher head pressure of the oil column in the well versus a gas column (ie fluid density).  This is the same reason a gas well producing water can load up.  Gas wells also utilize artificial lift - natural gas compression to lower the surface pressure.

 

Natural drive mechanisms for oil and gas reservoirs are similar - water drive or expansion drive.  Expansion drive in gas reservoirs is more effective due to being a more compressable fluid.  Recovery factors for gas reservoirs can be as low as 25 to 30%. 

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Permalink Reply by Spring Branch,mineral owner on April 2, 2012 at 10:12

Combination of depletion and price!

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Permalink Reply by P.G. on March 31, 2012 at 5:36

When will processing NG start costing more than what it can be sold for?

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Permalink Reply by Les Bamburg on March 31, 2012 at 13:41

PG, most natural gas has a variable operating cost well below $1.00 per Mcf.

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Permalink Reply by DrWAVeSport Cd1 on March 31, 2012 at 5:49

Per shutting in wells...

Remember GHS Friends & Neighbors, these O&G companies have VPPayments for which up front $$$$ where "loaned."  There are also many wells with "partnerships" attached to them.  And, least we forget the Billions of Dollars on "some" Producers' balance sheets. 

It's going to make it quite difficult to shut in too much while developing additional Plays.  As pointed out, depletion of existing wells, $2/mcf, VPPs, MLPs, Loans, and on-going development of Utica, Marcellus, etc., etc. Plays. ????

IMO, They can't stop now.  They will just negotiate/acquire more debt/partnerships/JVs.

Or...  Face Selloffs/Buyouts/M&As/Much lower stock prices...  IMO

And, lessors will be at these "mercies."

Riding the Shale Waves, quite nauseous.

Washington Yahoos and O&G Leaders...including the Majors of the Oil Industry...need to put the "hurt" on Congress now.  Never will there be a greater "stick" than $4 and $5 gasoline prices. 

It's Now or Never, IMMostHO.

Demand, Demand, Demand.

DrWAVeSport Cd1 3/31/2012

 

 

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Permalink Reply by Bobi Carr ("parker") on April 3, 2012 at 5:12

I liked the sound of $2.75 much better than sub $2.00 but...........GRRRRRR, it doesn't look like Deutsche Bank is gonna be right.

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Permalink Reply by DrWAVeSport Cd1 on April 3, 2012 at 5:29

parker,

Well.... It looks like I need to "rewind" my previous comments "per shutting in wells."

I received March 30 CHK Revenue check...  ZERO Production for February 2012...

That's not the worst part.

CHK's "deducts" are the same for Feb. 2012 as they where for Jan. 2012...And, Jan. 2012 Production was 63,082 mmcf/mo.   Funny how lease operating expenses for "producing" wells can be exactly the same for "non-production" month...?????

Must cost a helluva lot to get someone to turn the "choke" off. LOL

I called the Shreveport LOC Office.  I asked if They had any clue as to how many HS wells were "shut-in" for February 2012.  They still don't have number as of this a.m. 4/3/2012.  But #s should be in in a few days.

"GRRRRRRR" is right!  LOL

DrWAVeSport Cd1 4/3/2012

 

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Permalink Reply by Parkdota on April 3, 2012 at 11:15

On the Haynesville Play site the author, who is pretty sharp, makes the following statement:  "In some articles about the gas storage/price situation some analysts suggest that providers might give gas away (presumably for logistical reasons)."  Is this possible????????

 

 

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Permalink Reply by Les Bamburg on April 12, 2012 at 15:11

Parkdota, highly unlikely.

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