Jay: Let me give it some thought. I'm unsure what third place is worth for April '09. Particularly if I drill down and find that a substantial number of your township's units have a vertical in the middle of them. LOL! Oops. Sorry.
Kenya. It's a very good place to "have land". Congratulations. In Township 16N - 15W, Sections 1-3, 6-8,11,14,16-22,26,28-31 have unit orders or applications to Chesapeake. Fossil has unitized Sections 34-36. A number of Chesapeake's early HA wells are in this township. And although those early HA wells were modest, each successive well has been a little more productive. Demonstrating the progression of completion design, ie. longer laterals, more frac stages, etc.
The well in sec 20 16n 15w is#238575 completed 2/20/09 initial test 6866MCFD. Production for 02/01/09 was78630MCF. The well in the section south of you sec.29 has been producing since 2006 .The second well in sec.29 is one of the first horizontal wells in the area, and has been producing for over a year.
danny. For the location and the lateral length, the IP seems short of expectations. Kenya, It's a decent well. We have become jaded as a 7 to 9 million cubic foot a day well used to be considered a very good well. Now with some HS horizontal wells coming in at three times that amount, 7 to 9 appears to be a little below average.
Kenya. You can use the SONRIS database link i provided previously (http://sonris-www.dnr.state.la.us/www_root/sonris_portal_1.htm) to get the information on this well and the others in your section. The well file for your well serial #238575 that danny and I are posting about will tell you the production information. You can take that production information and figure your portion based on your acres and royalty interest. Or just go on-line and plug the values into a royalty calculator and get an approximation of your royalty income.
Kenya. Based on 80 acre spacing, Chesapeake can probably qualify to drill 8 total HS wells in your section. As they learn a little with each one they drill, the later wells should have some improvement in their production. You receive royalty payments for every well in the drilling unit you participate in.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More