Replies to This Discussion

Permalink Reply by G Meaux on August 2, 2012 at 14:18

Is it reasonable to expect the production to double if they can achieve a lateral twice as long on a well?

Permalink Reply by Rock Man on August 2, 2012 at 14:44

IMO not really based on my experience with the Eagle Ford

Permalink Reply by Terry L. Antee on August 3, 2012 at 3:57

Why would they shut in a well for a pressure build up? 

Permalink Reply by tony allen on August 2, 2012 at 16:52

Mark,

I understand that the gas part of the Boe is currently not as valuable as the oil part but I have been noticing on all the new plays the O&G cos. are starting to use that term to compare results. I hope US gas price will eventually become more in line with international pricing. I remember last month in the AIX discussions when you said the value that NGL added to the revenue stream. Do you think the high btu content will add NGLs from this well? I am unfamiliar with the NGLs but a local operator said the NGL added a significant amount of revenue to his wells.

Permalink Reply by Rock Man on August 2, 2012 at 17:04

Hi Tony,

I know that companies all use the same BOE nomenclature (i.e. ^ MCF:1BO conversion ratio)- this can mislead some people when they see "BOE" and treat the entire volume at a $/BO value.

Actually pretty misleading  - some companies in the past used a much higher MCF to BO conversion to reflect the actual value, but that seems to have become the exception and not the rule in reporting flow rates and EUR's.

Personally, I would just quote the individual commodity volumes instead of combining, i.e. say "X" Bo and "Y" MCF

Higher BTU gas will add an NGL component and value to the production stream - key to final revenue for NGL's is the processing agreement that the operator has with the gas processing plant that is stripping out the liquids. Plant will charge a fee (e.g. they keep a % of the stripped out NGL's) and then give the remnant "net" NGL volume to the operator.

NGL yields vary depending on the qualty of the gas - the more heavies (higher carbon components), the more $$$ the NGL will bring. I have seen a wide range of NGL yields over a pretty close area in some plays in Texas, e.g. 30 to 100+ BBLS NGL per MMCF of gas produced (prior to processing plant fees).

A couple of weeks ago, there was a lot of press out about the major drop in NGL prices over the past year due to the glut of natural gas on the market (and the associated NGL's). The average price being cited for NGL's now was in the $30 to $35 per barrel range.

This is less than half what the NGL prices were a year ago.

Hope this helps

Permalink Reply by tony allen on August 2, 2012 at 18:34

Thanks Mark. It does help.

Permalink Reply by Rock Man on August 3, 2012 at 4:23

SI for bottom hole pressure build up test. Gives them idea of permeabilty and reservoir quality / considering it is a tite reservoir, the SI period could be pretty extensive.

This will help them as to drainage area per horiztonal and EUR numbers. As well as further drilling and well spacing.

Permalink Reply by Paul Peterson on August 3, 2012 at 8:57

The flare returned wednesday night does this mean the SI is over? Also the flames were really high last night.

Permalink Reply by B Kenner on August 9, 2012 at 10:11

Who has to pay for all the gas going in the air?

 

Permalink Reply by Aubrey C. Sanders, Jr. on August 9, 2012 at 11:53

NO ONE. Landowners indirectly.

Permalink Reply by obed w odom on August 9, 2012 at 14:00

I think I remember SWN saying, when they requested permission to flare gas for the Roberson, and maybe also for the Garrett, that royalty owners would be paid for the flared gas, but I could be wrong.

Also, I see that the SONRIS Lite Scout report of 8/07/2012 for the BML well says it was still shut in as 0f 8/06/2012, but SONRIS may have the date wrong:

8/6/12, WELL IS SHUT-IN FOR A PRESSURE TEST.

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

Permalink Reply by Bill Dailey on August 10, 2012 at 10:06

obed, I also remember that being the case for Roberson.  But, like you, I'm not sure if that's the case for Garrett.  Perhaps the rules are different regarding flaring in Arkansas vs flaring in Louisiana?

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