Replies to This Discussion

Permalink Reply by Jack B2 on July 25, 2010 at 2:32

Thanks Skip,
just to let you know we are still awake and on watch in Webster and keeping fingers crossed for T19 and T20, at least R9 thru 7 with some deep production with high bottom hole pressures in the Dykesville field. Just have to give time, time. Thanks again. cjf

Permalink Reply by Skip Peel - Mineral Consultant on July 25, 2010 at 2:53

Jack, the Dykesville and Dykesville East fields have quite a few deep penetrations, not to mention producing SMK and HA wells. It is likely that there is sufficient data down to 12,000 - 13,000'. However the township ranges you mention are not contained in either Dykesville fields. The area of 20N -9-7W and 19N - 9-7W would be included in the Homer, Holly Springs, Athens and Minden fields. With a number of N. LA. Wildcats thrown in for good measure.

Permalink Reply by Skip Peel - Mineral Consultant on July 25, 2010 at 4:22

Aubrey, if you would be so kind, please help us put the completion report in prospective from an economic stand point. The value of this well appears to be the liquids which in the current market are more valuable than the produced gas. Is 282 barrels a good well? How does the value of liquids vary by specific gravity? Though my knowledge of wells in the area is quite limited, the 15 barrels of produced water seems low which I would think is a good metric.

Permalink Reply by Aubrey C. Sanders, Jr. on July 25, 2010 at 12:13

Skip, I consider this to be a good well, especially in view of the fact that this is 4th "C" zone well in the 320 acre unit. The oldest well is more than 50 years old and it is generating $60,000 - $80,000 revenue per month. XTO will be spudding next well in unit in a couple of weeks and they have another location staked in the unit. Low water production is typical. As to value of fluids; 40 gravity is benchmark by which fluids are priced. We got $71.55/B in May.

At some future date we should produce "B" zone from this well. The 50+ year old produced from "B" zone until couplee of years ago when they started to co-mingle B & C. This old B zone well is best well in field I think.

I had expected slightly better production from recent well. But XTO seems very well pleased. Wells in Smackover tend to be long lived and decline in production rate is not too severe. Ultimately some of these wells could be re-completed uphole in Haynesville Sand or Taylor sand of Cotton Valley Group.

Permalink Reply by Skip Peel - Mineral Consultant on July 25, 2010 at 12:45

Congratulations, Aubrey. 5 "C" wells in a 320 acre unit with relatively flat decline and the potential for multiple future up hole completions sounds good. How wide an area of the state line play may expect the same or similar results?