Drilling/workover companies

Inquiry…two years ago we were approached by an outfit out of Arkansas about performing “workovers” on wells drilled on our land back in the late ‘40’s. My family and I signed the leases and this group succeeded in reworking one of the wells which is producing today. These leases were 1 year contracts signed in August of 2009. These wells were shallow 2300’ +/-. Prior to signing the leases I added an addendum stating the maximum depth of these projects would be no deeper than 3000’ and this was found to be agreeable.

 

This addendum came in handy as Pinebelt approached us this year wanting access to areas 3000’ and deeper. As it has turned out all my family members signed their lease…as of now I have not.

 

For anyone who has unsigned mineral rights you might want to keep this in mind.

 

Back to my inquiry, though we do have a well producing on two sections of our land nothing was ever pursued on the remaining two sections therefore lapsing two of the signed leases…we are seeking legal counsel on this.

 

Getting to my question…if we do have two parcels of land that are out from under lease (3000’ and shallower) we have decided to invest in trying to bring in other older wells that were drilled back in the late 1940’s ourselves.

 

Like I said, these are wells that have been produced but were abandoned not because they ran out of oil but the price of a barrel of oil could not warrant further production at that time. How would we, as a family, go about finding a company who would like to talk to us about this venture? Possibly even in a partnership position?

 

Thanks

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Permalink Reply by Skip Peel - Mineral Consultant on June 18, 2011 at 11:57
Herman, no one can answer this question accurately without the s-t-r of the minerals you are seeking to develop.  I think I know where they might be located from your previous posts but you need to provide the specific location in this discussion thread.  If you wish to receive accurate answers to your questions it is advisable to provide as much detailed info as you can provide.
Permalink Reply by Herman (Chuck) Plonnigs, III on June 18, 2011 at 12:48

Sorry about the lack of information. We are talking about Union Parish 34/22N/1W and 3/21N/1W. As I’ve said these are involving well’s that have been drilled and produced decades ago.

 

Go through Farmerville, past the chicken processing plant (I forget the name at this time as it has changed) then take a left.

 

At this point we’re not taking commitment…just want to discuss this circumstance with someone.

 

Be glad to meet them and show them the potential sites.

 

Thanks again

Permalink Reply by Two Dogs, Pirate on June 18, 2011 at 16:10
You had shallow production, less than 2500 feet, not much going on there, you may pick up the money from the middle of the road and hall a$$ to the bank and cash the draft. If you can work out something with a small recovery operation then go for it but only let them have from the surface to 2500 feet. I don't think that you will see some great deal out of these folks with wells that could maybe produce a couple of barells a day. Save all deep rights, don't give no-one a lease longer than 3 years with a 2 year option to extend. Good luck to you and I hope that the Great Spirit shines his lite on you.
Permalink Reply by Herman (Chuck) Plonnigs, III on June 19, 2011 at 9:31

Thanks Mr. Pirate...I guess the more direct question would be...how does one go about locating a small recovery team for purposes of initial discussion?

 

Thanks

Permalink Reply by Two Dogs, Pirate on June 19, 2011 at 14:33
If I were you I would use Sonris, go to Sonris Lite, go to wells by Section, Township and Range, only put in the township and range, don't put the section number in, this will pull up all wells in the T-R, look at all the status 10 wells, look mainly at the ones that are drilled to around the depth of the wells you are interested in, find the ones that have minimal production or have been reworked recently, check the original ID for the company operating the well, then contact them. You will also need to check the adjacent T-R and keep moving out farther to find some recovery team. Most likely the company operating the well will be someone that you never heard of. Even if it is a couple of townships or ranges away from you, they may be still interested in picking up your one or two barrel a day well. Money is money.
Permalink Reply by P.G. on June 19, 2011 at 14:49
Who owns a well that has been plugged and abandoned?
Permalink Reply by Two Dogs, Pirate on June 19, 2011 at 14:59
Maybe  you?
Permalink Reply by Herman (Chuck) Plonnigs, III on June 19, 2011 at 16:02

Thanks again Mr. Pirate,

 

I appreciate your observations and as you say money is in fact that …if it’s there, it’s there. As of 06/01/2011 we have sold 1088 barrels of oil. from a year ago.

 

If we could increase that from an established source why not?

Permalink Reply by Joe Aldridge on June 20, 2011 at 2:39

Herman, 

The way I read your original question is: You want to look at the possibility of producing the the well yourself. If that is the case then you need to first talk to an Independent Consulting Petroleum Engineer and pay him a few dollars to do an evaluation on completing and outfitting the well for production. That would be the first step. You also need to consider forming a LLC to manage the well(s) and deal with the State and make the sales of any production. Sounds like a fun project. Good Luck I hope you make a well.

Permalink Reply by P.G. on June 20, 2011 at 3:37

Maybe  you?

 

So the original driller gives up any claims to such wells then..huh?

Can a P&A well even be reworked?

Permalink Reply by Joe Aldridge on June 20, 2011 at 3:53

PG.

My understanding of Louisiana Mineral law is that once a well is abandon it is no ones until someone claims it by re-permitting it for some purpose. So yes it can be re-entered and used for disposal, production or what ever. Also, of note. Its also my understanding that when a well is abandon it is to be left or abandon in such a manner that it can be re-entered in the future by drilling out the cement plugs and picking up the mechanical plug. So yes when the "original driller" abandons a well he give up all claims to it.

Permalink Reply by Herman (Chuck) Plonnigs, III on June 20, 2011 at 11:00

Mr. Aldridge…Thanks so much for your insights, advice and suggestions. I’m sure I’ll be lobbing future questions as this is something I’ve never considered perusing before. Oil will be going back up in value, in my humble opinion, as WTI will soon start closing on Brent so I’ve been led to believe.

 

I was involved in the oil industry for about 20 or 30 minutes back in the early ‘80’s. Should anyone ask you what happened to the oil industry back then you can say “well I have communicated with the guy who did it.” Yes indeed…I got into it and Lafayette turned into a ghost town!

 

But I was never involved in the investment or land ownership end of things. I was a mud logger then a mud engineer.

 

Enough of this…if you happen to know an Independent Consulting Petroleum Engineer or where to find one that would be great!

 

And thank you again Mr. Pirate…I will try to wade into Sonris very soon as advised.

 

As usual, this website is an amazing source due to individuals like yourselves and others I have communicated with.

 

I will keep ya’ll advised as to where this thing is moving if you would like me to…if not tell me to shut up and I will.

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