Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on August 19, 2014 at 13:23

Reported by Halcon as 715 BOE/D, 2873' EFFECTIVE LATERAL LENGTH.  I've just been explaining to one of my tracking spreadsheet subscribers why the production reported by the operators is so different from the data in the state Initial Production test Form 3.  It appears that the operators are reporting Peak 24 Hour Flow Rate and adding in the gas to get a BOE figure that looks more impressive than the BBL (oil only) first 24 hour rate.

The Form 3 is not yet available on the HK Blackstone 4H #2.  Here are some comparisons between what the operators are reporting for Initial Production in their press releases and corporate presentations and the data contained in the state completion reports.  The Encana Pintard 28H #1 is reported by Halcon which has a Working Interest in the well as 1254 BOE/D while the MS O&GB Form 3 completion report (attached) states the IP as 106 BBL/D.  The ECA Lyons 35H #1 is reported by Halcon as 618 BOE/D but the Form 3 (attached) has 268 BBL/D.  The official state tests are obviously less impressive than the operators would care to report publicly.  Their BOE/D figures are likely Peak 24 Hour Flow Rates converted to BOE/D in order to look more impressive. 

Permalink Reply by tc on August 19, 2014 at 15:29

In the press releases the operators are clearing stating that their numbers are peak 24-hour production rates.  The MS numbers are useless, unless you want a frac water IP.  First peak production would never happen 1 day after start of production.  1st flowing date 5/21, date of test 5/22.  As the data shows the well is still producing mostly frac water 672 bbl vs. only 106 bbl. of oil.  Finally a choke size of 10 is almost unheard of during an IP test.

Permalink Reply by Skip Peel - Mineral Consultant on August 19, 2014 at 15:34

I also find the peak 24 hour test to be more relevant than the state test.  However in a black oil play stating 24 hour rate in BOE/D is gilding the Lilly.

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