Replies to This Discussion

Permalink Reply by Drew Carlton on November 3, 2011 at 20:16

What does that mean?

 

Permalink Reply by dbob on November 5, 2011 at 15:46

Drew - 

 

Basically, it means they hit gas in what appears to be in paying quantities, but for whatever reason, have chosen not to bring it online yet, and the well is shut in.  

The temp at the bottom was 389 F - pretty hot - someone with more geology background will need to tell us what that means, but I think it means no liquids, and probably good chance of high CO2 as was previously noted by Bosco

The well was logged with 18.5 lb mud - someone here can translate that into a maximum pressure - I take it as a good sign

 

The productive interval is listed as 17076 to 18402 - If its actually productive across that interval, its a heck of a potential well.  

 

There are shallower formations there that might be of interest - Buda is at 8074 - but for whatever reason, we don't get information on the formations below 11952 - It could be that the RCT form only has the space for 6 formations, or it could be that some of the things they found between the Pettet and the target were also of interest.  The conspiracy theorist inside of me likes that.

 

Permalink Reply by dbob on November 8, 2011 at 14:08

One of my Apple Springs contacts mom lives near the intersection of Hwy 94/FM 357 and says there has been continued movement of equipment to the site in the past few weeks.  Some of what was described sounds like a decent sized vertical separator.  No word on any pipeline activity or on any transports carrying liquids.  

Permalink Reply by dbob on November 29, 2011 at 17:45

Ok, new filling on 11/22/2011-

 

The well is listed with an IP of 1300 MCF/day with 176 bbl water and no condensate.  

Static pressure is 11,415 psi, flowing pressure of 2040 psi.  

no details of a frac - is it possible this is the open hole flow rate, with no frac?

 

eye witness says they are building or have built a fairly large gas processing plant - probably an amine unit and glycol dehydrator - much larger than would be justified by 1300 mcf/day. Also, someone said they saw trucks working for the electric cooeprative that direction a few weeks back.  

 

Permalink Reply by Drew Carlton on November 29, 2011 at 17:56

dbob,

 

 

Is this good news for the lease holders nearby?

Permalink Reply by dbob on November 29, 2011 at 18:03

I think the gas processing plant that appears to be going up on site is good news - it suggests Leor might be active in the area.  The pressure is excellent, but the decline between static pressure and flowing pressure suggests they need to either frac it, or refine the frac used.  

 

At this depth, its going to be dry gas, and i don't see a huge rush unless someone comes up with liquids at a shallower depth - there won't be any way to know what Leor found shallow unless or until they try to produce it.  I have ancedotal comments suggesting some of the other wells in the area have found unconventional liquids in the past, but no way to confirm.  

 

If I were leasing minerals in the area, I would focus on getting a short term lease (no more than 3 years) with good royalty.  I'd strongly avoid long leases such as the 4+4 leases that were done in the smackover, and i'd tend to push for a high royalty rate - 1/5 to 1/4.  I don't know if anyone will get that, but anyone willing to give a 3 year lease @ 25% is planning to drill.  

Does that make sense?

Permalink Reply by Drew Carlton on November 29, 2011 at 18:15

It does dbob...All the leases including mine will expire in August of 2012. I have 100 acres located 7 miles SE of Forestar#1. I guess now its a waiting game to see if Leor wants to explore around me. If not, I hope someone else does! Thank you so much for the information!

Permalink Reply by dbob on December 13, 2011 at 17:16

Mike,

To my knowledge, on speculative wells like this, no one ever constructs the gas processing plant or pipeline prior to the well test.  Possibly makes some plans, but you won't know the gas composition and the design parameters of the plant until you have the well tested.  

The level of construction I've seen pictures of strongly suggests a high level of confidence on the part of Leor.  Frankly, it doesn't add up unless they expect something more out of this well.  My read on the current situation is that they have made the decision to not fully produce this well to allow more time for leasing.  Its the only thing that makes sense in the current low gas price scenario.

Permalink Reply by dbob on December 13, 2011 at 17:17

Oh, and I've got multiple reports of heavy landman activity at the Trinity County Courthouse, with multiple companies involved.  

Permalink Reply by dbob on February 24, 2012 at 17:34

Looks like Kinder Morgan will be running the gas processing plant at the Leor well - Can anyone provide some context to this?

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Permalink Reply by Dry Hole on February 24, 2012 at 18:20

 Can you go to the RRC site and find  out if they now control the pipeline and gathering system also ? ----------- Why would a big company like Kinder Morgan be taking on a single 1.4 mmcfd well that is off the "beaten trail" ? 

Permalink Reply by dbob on February 25, 2012 at 2:53

I've never been very successful in getting pipeline details.  Maybe someone else can track that down.  I'll make an attempt later today.

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