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Permalink Reply by Les Bamburg on August 9, 2011 at 13:52

Mike, I estimate this well would have likely tested at 20+ MMcfd on a 24/64" choke.  I am fairly certain this is a Bossier Shale completion.

 

By the way, this looks like an excellent well.

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Permalink Reply by Mike on August 9, 2011 at 15:33

I appreciate it Les.

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Permalink Reply by Krkyoldhag on August 10, 2011 at 4:02

off topic:  BUT is anyone else watching the price of Oil and Gas?  Does anyone have a guess/opinion as to why gas is down or up pennies while oil is dropping by dollars?

 

Just wondering if this might be indicative of a move upwards of Natural gas prices after the market settles?

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Permalink Reply by Skip Peel - Mineral Consultant on August 10, 2011 at 4:13

Oil is a different commodity.  A global one.  Natural gas is a regional commodity.  In other words there is limited sale and transport overseas.  LNG is a small portion of sales and because of transportation constraints it can not take advantage of short term volatility.  The current U.S. economic difficulties may have a negative impact on the rest of the the world economies which could depress the demand for crude oil.  The U. S. natural gas prices may decline slightly but considering the heat wave and record setting demand for electricity, the short term prices should remain relatively stable.

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Permalink Reply by Les Bamburg on August 10, 2011 at 4:39

KOH, if you are referring to daily NYMEX gas futures this can be driven by speculators and/or persons in the market looking to hedge future gas sales/purchases.  Daily cash prices for natural gas are a function of persons looking to balance their next day's deliveries/takes of natural gas.

 

The recent drop in crude oil prices is more a function of perception rather than fundamentals as global crude oil demand has not decreased. 

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Permalink Reply by Krkyoldhag on August 10, 2011 at 5:19

I am watching the prices on the main page of the GHS site..and figured it was well head price

 

Guess I looking thru rose colored glasses..but its encouraging to me to see the price of NG hanging steady...and interesting that oil keeps dropping.

Of course I hoping NG prices will end up over $5 ...the pad and road and pits the drilling company prepared on my land is just sitting there...no drilling going on.  If prices go up maybe they will come back and drill

 

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Permalink Reply by Les Bamburg on August 11, 2011 at 2:49

KOH, that price appears to be the NYMEX gas futures for September so more an indicator of next month's price may be.  Wellhead prices would be lower than this value.  

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