Wow good news. Thanks Bob for sharing. Looks like they are filling in where they did not have units around Cocodrie Lake east of Forest Hill.
Well is that good or bad news? Are they anticipating alot of SW waste or coming from wells or does it take alot for new fracking techniques? Confusing since 5 more units applied for.
It's not the frac water. It's the produced water that is the concern here. If operators can not limit produced water by wisely choosing the best lateral landing zone then they will need to have SWD wells to help manage the cost of disposal. It is a major post-completion cost.
Cost of disposal varies but I think this is a reasonable cost average estimate and shows the savings that an operator gets from disposing of its own produced water as opposed to paying a disposal company. From what we have seen to date regarding produced water volumes, managing disposal costs will be a key to profitable wells.
For a saltwater disposal well that is operated by an Oil and Gas Company for disposal of the brine produced during normal operations, the average cost of disposal is often less than $0.25 per barrel of fluid disposed. A commercial SWD well will typically charge between $0.50 and $2.50 per barrel of fluid.
You HAVE to have a SWD. Trucking the water would destroy the economics. Here is a sample of a well from Masters Creek. Cumulative Production of Oil 1.1 MMBO. Cumulative Production of Gas 4 BCF. Cumulative Production of Water 8.2 MMBW. Do the math.
When we studied the area, we built in a SWD for every producing well into our model. The amount of water AC wells make is huge.
Thanks Jay! That is good to know that it's part of normal AC well production.
Wow Bob! Was just looking at the Sonris Map on these two SWD & they are very close to one another. Only one section away.
Where can I find this map?
Can you be more specific, Darrell? The map of the drilling units? Or, the map of the SWD well location?
Sorry that I wasn't specific, Map of drilling units is preferred.
Go to the top of the page and click on the link in blue that starts with SOUTHWIND%20AC. It is right under "Back to Austin Chalk Discussions". Those were the first units if memory serves. There may be links in other parts of the discussion to subsequent unit applications. If you don't find what you are looking for, let me know and I will provide instructions on how to access the applications in the database.