Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on January 18, 2021 at 11:24

Patterson UTI #238 will likely be assigned to the Russell 33-28-21 in the next rig report.  It was conditioning the hole in preparation to run the final casing string on the Kenner 21-16 HZ #1 as reported on the 13th.

http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo2...

Permalink Reply by Terry Johnston on July 20, 2021 at 12:17

They started frac job on this well on May 27. No test reported yet on SONRIS. Anyone have any information on test? We have received two offers to purchase our mineral rights which are located just east of the well path, but in adjacent unit(s). 

Permalink Reply by Skip Peel - Mineral Consultant on July 20, 2021 at 12:21

Once the well is completed and "flowing to sales"  it could be some weeks to a couple of months before the Initial Production data is available on SONRIS.  And some additional months before mineral lessors receive royalties.  The offers do not come from anyone that knows anything about the Initial Production of the well.

Permalink Reply by Terry Johnston on August 6, 2021 at 10:47

The well was tested on July 17 at 30,044 Mcf/d with 8,732 psi ftp. I suspect that the people making offers knew this when they made the offers. 

Permalink Reply by Skip Peel - Mineral Consultant on August 6, 2021 at 11:20

A possibility but that would be rare in my experience. Most mineral buyers don't wait to see IP data and even the well operator doesn't know the initial flow and/or flow after clean up until after the well is turned to sales.  Most buyers simply go by alternate well applications and/or well permits.  There is so much basic rock data at this point in development that there is no need for a reservoir opinion by a professional.  Most buyers sending offer letters are low cost almost boiler room operations.  They spend little on the front end besides the envelope and stamp.  It cost nothing to look at the applications and permits at the end of each day on the database.  I do.  Takes about two minutes.

I have run across a few mineral companies that have some inside information but it is usually site and operator specific.  Mineral companies like to be good lessors because their business model is built on a ROI the sooner the better.  For that reason their operator may provide them with proprietary info.  I've dealt with somewhere around forty mineral companies and only know for sure that one had inside information and that was limited to where the operator planned to drill next.