Replies to This Discussion

Permalink Reply by William C. Morrison on July 20, 2019 at 6:44

New approved perforation zone for Brunswick well.  The new approval is for 13,588 to 13,598.  Current max depth is 13,770 and is cased all the way to the bottom.  No report status that I can find on the original perforation zone.  

Permalink Reply by Rock Man on July 20, 2019 at 6:58

I find it difficult to believe that they will get an economic well from 10' of perforations - even with a frac. I figure that they are just trying to salvage something from this drilling operation and get some $$$ back.

Wilcox well will give you some decent rates (even with thin zone) - probably in the 100 BOPD range. But "tank" size will probably be limited.

50 MBO of total production will net the operator about $2 MM assuming 75% royalty and $55 oil prices (non discounted and no LOE figured in).

So royalty owners get some $$$ over time.

Permalink Reply by William C. Morrison on July 20, 2019 at 8:36

Thanks.  That is the second perforation, the other is 20 feet vice this one a 10 feet.  Our lease is 20% royalty down to Austin Chalk and 25% royalty for Tuscaloosa Trend below the Austin Chalk.  And of course, they did not go horizonal nor did they go on down to the Tuscaloosa Trend or even into the Tuscaloosa Marine Shale.  They did not even go to the permitted depth of 17,000 plus feet.  For whatever the reason, they drilled fast and pulled the rig out of there.  I am sure it was a costly operation and they have other wells to drill.  Your sense of what has happened is probably right on the spot.

Permalink Reply by John Matherne on July 20, 2019 at 9:20

Locking up acres under production 

Permalink Reply by Rock Man on July 20, 2019 at 9:33

True - depending on lease details, oil unit would be 40 to 160 acres depending on depth (I am betting it is 80 acres in this situation).

HBP down to 100-200' below producing horizon once primary term expires. So deeper AC / TMS not HBP.

Permalink Reply by William C. Morrison on July 21, 2019 at 1:35

Well I have seen a lot of 40 acre units in Texas or Kansas but the smallest unit I have ever heard of in Pointe Coupee is 640 acres and the newer ones are running over 2000 acres.  I think it would be great to have small units but that ain't gonna happen in Pointe Coupee.  I have been fighting to keep it at 640 acres (and been losing too).

Permalink Reply by Dion Warr, CPL on July 21, 2019 at 6:58

Mr. Morrison:

Agree with RM on this one - a vertical Wilcox well seldom is determined to drain > 160 ac (prior units fitting the criteria have been unitized in the 80-160 ac. range).  If one could prove up a larger contiguous and communicating reservoir you could have more - but this is unlikely given the strata without other wells / well data to support for a unit formed under R.S. 30:9.  In the case of a reservoirwide unit (more wells, more geology / geophysical data) and use of R.S. 30:5 one could create a sizable reservoir unit.

Permalink Reply by Craig Wascom on July 20, 2019 at 11:53

So true John again another case of getting the early well in a play not being a good thing.

Permalink Reply by Rock Man on July 20, 2019 at 12:03

True - but without those early wells, there will be no possible future and better wells.

The cost of being an O&G operator - this touches on how much $$$$ they have to spend to prove up a play! Or to determine if it doesn't work and when it is time to "stop the $$$ bleeding".

Permalink Reply by Craig Wascom on July 20, 2019 at 12:12

I agree Rock I just don’t want to be the one.

Permalink Reply by William C. Morrison on July 22, 2019 at 10:25

Two pieces of information on EOG.  They are running a power line to the Brunswick well.  The second piece of information is that they are drilling a Salt Water Disposal well in the near area in the Morganza Field, relatively close to the Brunswick well.  So I figure they have hit something but what it is remains a secret.

Permalink Reply by Rock Man on July 22, 2019 at 10:58

Good field info / electricity could be for artificial lift equipment (ESP? Surface pumping units?).

Having their own SWD well will save a TON of money versus trucking out water @ whatever the local rate is (I have seen as high as $4-5 per BW trucked).

Thanks for the update!!!!!!!!!!!!

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