Replies to This Discussion

Permalink Reply by Judy Smith on November 5, 2014 at 12:53

Skip sorry I have bothered you.

Permalink Reply by Skip Peel - Mineral Consultant on November 5, 2014 at 13:05

No bother and no apology necessary Judy.

Permalink Reply by Judy Smith on November 21, 2014 at 7:04

Skip, is there a website I can go to that will tell me more about the fracking on this well and production results when it happens.  Many thanks, Judy 
Smith

Permalink Reply by Skip Peel - Mineral Consultant on November 21, 2014 at 7:11

No.  Goodrich (GDP) does not report to the state until after they have made an announcement in a corporate presentation or news release.  When they are ready they will make the status or results known.

Permalink Reply by Kevin Raybourn on November 21, 2014 at 15:46

Latest word is This well will be finished Fracturing in the next day or two.....And then on to the Williams site next....

 

Permalink Reply by Judy Smith on November 22, 2014 at 2:02

Thank you Skip and Kevin.  If either one of you get word on how this well is producing, please let me know.  Many thanks, Judy Smith

Permalink Reply by Kevin Raybourn on November 22, 2014 at 9:06

If it comes in at 1200 to 1500 BOE  We will hear that News form a lot of places ..I m anxious to find out too....Hoping it is a Big one....

 

Permalink Reply by Skip Peel - Mineral Consultant on November 22, 2014 at 10:25

The TMS wells are likely not economic in that range IP.  That equates to a 600,000 to 800,000 barrel EUR.  They need to be closer to 1,000,000 BO.  And at current crude prices that might be marginal.

Permalink Reply by tc on November 22, 2014 at 11:55

Of course predicting oil prices for the life of the well, next 10-20 years, is not easy, it would be like predicting the weather or stock market for the next 10-20 years.

The question for Goodrich in the TMS is how much current pain can they stand for future gain, if you believe that oil prices won't stay below $80 for more than a year or two.

Permalink Reply by Skip Peel - Mineral Consultant on November 22, 2014 at 12:07

TMS exploration wells aren't economic at $90/barrel.  Before the price of crude over the next 10-20 years comes into play GDP has to get through the next 12 months.  Other TMS operators have options, GDP doesn't.

Permalink Reply by Judy Smith on November 22, 2014 at 12:21

ok just one question.  Does this mean the landowners for this site, will not get royalites?

Permalink Reply by Skip Peel - Mineral Consultant on November 22, 2014 at 12:28

Just one?  Mineral lessors in the unit will receive royalty payments on production whether or not the well operator every makes a nickel in profit.  You do however want the operator to make a profit sufficient to induce them to drill more wells.  TMS units are set up for multiple horizontal wells.  If the economics are not good enough to drill additional wells the operator, or a successor, can hold the leases in force as long as the original unit well produces without drilling more wells.

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