Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on March 12, 2013 at 8:19

TD,P, considering the condensate, the pressure and the choke I'd call it a good well.  Let's see how it does over the next 3 to 6 months.

COMPLETED 3/5/13 AS A GAS WELL IN THE AUS C RA SUG RES;PM F 3120 MCFD; 1042 BCPD; 5900 FTP; 5900 SITP; 2700 CP; 16/64 CK; 1320 BWPD; 2994 GOR; 48.1 GRVTY; PERFS 12293-19917' (ST: 10)

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

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Permalink Reply by Andrew on March 12, 2013 at 8:34

I've heard that these Austin Chalk wells rival Haynesville wells in their propensity for dramatic decline rates. Let's hope APC has figured out how to alleviate that.

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Permalink Reply by Skip Peel - Mineral Consultant on March 12, 2013 at 8:55

241312 has over two years production reported.

LEASE\UNIT\WELL PRODUCTION

RPT DATE	LUW CODE	STORAGE FAC	DOC USE	WELL CNT	OPENING STK	OIL PROD(BBL)	GAS PROD(MCF)	DISPOSITION	CLOSING STK	PARISH
12/01/2012	616332			1	252	2662	18063	2605	309	VERNON
11/01/2012	616332			1	434	2257	18373	2439	252	VERNON
10/01/2012	616332			1	386	3474	20333	3426	434	VERNON
09/01/2012	616332			1	205	3635	20509	3454	386	VERNON
08/01/2012	616332			1	226	3489	23107	3510	205	VERNON
07/01/2012	616332			1	364	4012	26372	4150	226	VERNON
06/01/2012	616332			1	440	3721	26932	3797	364	VERNON
05/01/2012	616332			1	579	3640	27235	3779	440	VERNON
04/01/2012	616332			1	399	4163	30577	3983	579	VERNON
03/01/2012	616332			1	142	4166	31652	3909	399	VERNON
02/01/2012	616332			1	213	3898	28625	3969	142	VERNON
01/01/2012	616332			1	134	5550	34571	5471	213	VERNON
12/01/2011	616332			1	139	5216	33299	5221	134	VERNON
11/01/2011	616332			1	67	5142	33513	5070	139	VERNON
10/01/2011	616332			1	326	5583	36565	5842	67	VERNON
09/01/2011	616332			1	32	6179	38276	5885	326	VERNON
08/01/2011	616332			1	82	6598	43917	6648	32	VERNON
07/01/2011	616332			1	306	7572	52268	7796	82	VERNON
06/01/2011	616332			1	227	9140	58800	9061	306	VERNON
05/01/2011	616332			1	368	10726	71476	10867	227	VERNON
04/01/2011	616332			1	288	12337	77594	12257	368	VERNON
03/01/2011	616332			1	178	14052	78862	13942	288	VERNON
02/01/2011	616332			1	346	12879	81331	13047	178	VERNON
01/01/2011	616332			1	233	9937	84651	9824	346	VERNON
12/01/2010	616332			1	509	14179	104219	14455	233	VERNON
11/01/2010	616332			1	27	10213	72213	9731	509	VERNON
10/01/2010	616332			1	27	0	0	0	27	VERNON
09/01/2010	616332			1	0	4036	0	4009	27	VERNON

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Permalink Reply by Andrew on March 12, 2013 at 9:57

The severance tax relief is for a maximum of 2 years so they would have had to start paying in september of 2012. 

The decline doesn't look too bad from those numbers.

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Permalink Reply by Andrew on March 12, 2013 at 9:59

And after thinking about it, 175 MBO and 1.1 bcf would probably be over $20 million in gross production, so they probably hit payout well under 2 years.

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Permalink Reply by 1kw6x71km1v37 on March 12, 2013 at 13:40

A good chalk well used to pay for itself 3-9 months, depending on production. Not all chalk wells were good back in the day before the market was gutted. The cited No. 241312 should be paid out by now and then some unless costs have gone through the roof. The operator could now looking forward to a long period of production at minimal well costs. Or, he could be suddenly be looking at an extended period of limited production with high costs to keep the well in production. It may all depend on how that slotted liner works out in the laterals.

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