Replies to This Discussion

Permalink Reply by JR in VA on August 28, 2013 at 3:24

Thanks George -- we had same experience. We received the first royalty payment on Phelps in mid-August, no division orders.   Let's hope for continuing strong productivity!

Permalink Reply by Bill R on September 11, 2013 at 15:39

I now have all three, the Phelps, Chinaberry and Alexander Division Orders, but again no Royalty payments as of yet... Also getting D.O.s from EOG on the other side of the County as well... and did receive a couple of Royalty checks from those wells already. Wonder if this is a trend or just some 'housekeeping'?

Permalink Reply by Bill R on September 6, 2013 at 16:43

Just received Phelps D.O. on Wednesday, however no Royalties to date...

Permalink Reply by JWD on September 10, 2013 at 16:03

We got DO also

Can someone help me with some information.  The Phelps 1H tested on 5-03-13 @ 14.289 MMcfd on a 19/64 choke with a 9230# flowing pressure.  It has ranged from 48,000mcf to 450,000mcf per month.  Is this average production for a Haynesville well or is this pretty well choked back because of the price of gas or demand?

 

Permalink Reply by GoshDarn on September 10, 2013 at 16:39

Wade:

The IP of "@ 14.289 MMcfd on a 19/64 choke with a 9230# flowing pressure" would be considered a good well, IMHO.  Not a barn-burner, but a decent mid-level well per my thinking on such.  Note:  I'm not familiar with your location or area, so you might want to take my feedback with a grain of salt.

And the 19 choke isn't what I would call a big choke back at all.  I'm no expert on this, but with my family's HA wells in a La. sweet spot -- the bottom baseline on the choke tends to be about 14/64.  So 19 ain't too bad.  And the pressure looks good, too.

But this is just my opinion, of course.

Permalink Reply by JR in VA on September 10, 2013 at 21:34

Wade,

I would also add that the 48,000mcf month was an initial partial month and the other lower

production month  (May, I believe) involved a mechanical problem at the site that reduced production.  It seems to be settling into a low 300,000 mcf pattern now. 

JR

Permalink Reply by jffree1 on September 11, 2013 at 7:46

The well has made 1.5 bcf in 4 months and a couple of days:

Mar. -   48,338 mcf (partial month, ~3 days)

April-  457,959 mcf

May-  297,096 mcf (probably partial month)

June- 368.595 mcf

July-  336,632 mcf

Permalink Reply by JWD on September 11, 2013 at 14:46

Thanks fellows for the information.  I am learning.  If you can, clarify something for me.

mcf is thousand cubic feet ?

MMcf is million cubic feet ?

bcf?

Permalink Reply by jffree1 on September 11, 2013 at 20:33

bcf = billion cubic feet

Permalink Reply by GoshDarn on September 11, 2013 at 21:07

bcf would be a darn good thing, for sure

Permalink Reply by JWD on September 12, 2013 at 6:15

Thanks fellows.  So I guess what we can expect from the Phelps 1H is an average between 300mcf to 400mcf per month, is that what you guys think?

Permalink Reply by GoshDarn on September 12, 2013 at 7:12

Wade:

These super wells come in at very high IP's.  And this one's IP was darn good, too.  And then the monthly production was way, way high, too.

But please realize that these high volumes tend not to last for too very long, if history is a barometer.

With my family's super wells in Bossier Parish, the high volumes sort of continue to pay quite well for the first six months or so . . . yet there tends to be a steady decline down.  That's how NG wells deplete.

Ergo, a conservative guesstimate would be that within a year's time, if not sooner, you'll be seeing way lower volumes, unless this is some sort of exceptional well.

Anyway, congrats on a wonderful royalty.  The more acreage your family owns in the unit the better.

Still, you need to realize that such a well will decline fairly rapidly . . . and within a few years, it will begin its graph into a much lower-volume flat line, i.e., much, much lower . . . which means that a landowner needs to be realistic and realize that the fat beau coup royalty comes and goes.  It tends not to last.

So save your money and only spend it when the check, or direct deposit, clears the bank.  Plus, do not assume the big checks will keep coming for too many years.

Hey, good luck on the alternate unit wells . . . whenever such new drilling/production becomes profitable for the operator.  But that might be yet another big unknown.

Finally, enjoy the rewards of whatever family ancestor/s invested their blood, sweat, and labor to acquire the farmland all those many years ago, if that's what, in fact, happened.

Best of luck to you. 

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