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Permalink Reply by Skip Peel - Mineral Consultant on June 30, 2022 at 7:19

I had some time so went looking for the wells J mentions.  These are Trinity wells, two named Matador and 2 named Tippen.  One Matador well is producing from sections 33&28 and one from 34&27, 19N-16W.  Both wells had good initial monthly production reports but now just over a year later have declined significantly.  Trinity wells usually exhibit low flow on the initial well test seemingly because the company rushes to perform the test well before the well has "cleaned up".  New version, long lateral wells can take weeks to reach maximum flow.  The Tippen wells had original permits which expired.  A new permit for each was issued the first week of June.  One will be drilled in sections 36&25 and one in sections 35&26.

All these wells are located in the bottom third of 19N-16W and Trinity has not applied to the state for any wells north of there.  I'm not a geologist but it has been some time since all the wells went through the spacing and permit process and there have been no follow up applications for units further north in 19-16.  It's my guess that this is as far north as Trinity goes.  Another six months of reported volumes from the producing wells may bear this out.  The decline in production looks steeper than that of wells further south.

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Permalink Reply by Skip Peel - Mineral Consultant on July 1, 2022 at 6:37

Economics of the HA RA SUHH;LA TIDE CO 2H #1:  Lifetime production to date - 1,258,407 mcf.  Well cost - $7,422,382.  $7,422,382/1,258,407 = $5.90.  That is how much the well would have had to average per mcf each month to recover the cost to drill and complete.  The $7.4M doesn't include the royalty burden, severance tax and Lease Operating Expenses for the 94 months of operation.  With most recent reported monthly production down to 5200 mcf, this well will never pay out.

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