Replies to This Discussion

Permalink Reply by 0i7okn54zwbdo on December 2, 2011 at 6:58pm

Because of confidentiality I cannot tell you how I know that they did a second lateral, but they did. They will likely never make a profit on that well but the data collected will be invaluable.

Permalink Reply by 0i7okn54zwbdo on December 3, 2011 at 3:40pm

What can I say, I'm a special guy. I have some deep connections to the industry and I post on here under a pen name. I just participate in this forum because landowners often don't get the best information and it can hurt them.  This is potentially the biggest economic windfall for Ohio in decades and I'm just doing my part to make sure that people are armed with good information.

Permalink Reply by Brett R Oxley on December 5, 2011 at 1:44am

So, you know that the first unsucessful lateral is already paying out royalties?

Permalink Reply by Corey Hendricks on December 5, 2011 at 2:31am

The easiest way to tell how many laterals were drilled on that site is to look up the permit on the ODNR website under the Oil an gas database.  The Milton well is all named under GEATCHES, Buckeye energy, 3 permits = 1 vertical and 2 laterals

Permalink Reply by Brett R Oxley on December 5, 2011 at 2:59am

thank you for that information.

 

What I really need to know is if they have to depict the direction of the lateral they are seeking permits for, and if so does that show up anywhere on the permit?

Permalink Reply by Corey Hendricks on December 5, 2011 at 4:19am

They typically have to record a site map, however, I don't know that those are accessible on the ODNR site but I have seen them in the lease records available through the county recorders office.

Permalink Reply by Brett R Oxley on December 5, 2011 at 6:44am

Thank you. i know that the first lateral is producing as my neighbors on that lateral have recieved royalty checks already. The second lateral is still being flared and has been burning for over three weeks now. According to Marcus Grayson, that well is not producing. His "inside:" information about the theree wells, one horizontal, two laterals is open knowledge amongst the rest of us in the area, and those smart enough to look it up.

 

I was told/read that they normally drill NW or SE on the laterals from the well site,  as somehow that is how almost all of the deposits run.  I personally do not know if that is correct, but hope so as I am directly NW of the well pad.

Permalink Reply by 0i7okn54zwbdo on December 6, 2011 at 4:47am

You are correct about the NW orientation of the first lateral. Almost all of CHK's permits and maps show as much. As far as landowners getting royalties on the first lateral it isn't surprising nor does it conflict with my original statement. Producing oil and gas from the well does not mean profiting from it. CHK will likely never make back the money on the Geatches unit simply because it has taken so long and cost them so much. That doesn't mean that landowners won't get paid or enjoy the spoils. It just means that the investment on that well will not be profitable. Such a scenario is not uncommon. Hell, I've read studies that show only 15% of the wells in the Fort Worth Basin are profitable on their projected timeline. If you look at the Marcellus you'd find quite a few wells that are entirely uneconomical at current market price. That doesn't mean that landowners aren't making decent money, it just means that the production companies have to take a loss. CHK has admitted that many of their Marcellus wells were drilled simply to HBP the land and avoid having to resign landowners at newer, higher prices.

Permalink Reply by Corey Hendricks on December 8, 2011 at 9:41am

Brett,

I attached a PDF file with maps and completion data from the Geatches well. The lateral runs NW as you and Marcus had speculated. Worth noting is the completion log with Marcellus thickness @ 44' I would have anticipated it to be a little bit thicker. Take a look at the numbers I marked for the Utica thru BRG. As I started to poke around I noticed the Geatches site only has one active lateral permit.  There are actually a number of permits for that site but a portion of them are revisions. As near as I could find there is really only one lateral permitted on that site.

Attachments:

• GEATCHES Well.pdf, 91 KB

Permalink Reply by Brett R Oxley on December 14, 2011 at 8:31am

Thank you for that information. They finally stopped the flaring of the second lateral this past weekend, and  the flare pipe is gone and has been replaced with a "tree".  i am hoping that means it is ready to go into production$$$$$!!!

Permalink Reply by Karl Henkel on December 16, 2011 at 6:37pm

Considering Chesapeake was in a "test phase" about two weeks ago, I don't think things are that far along, are they? Haven't been there out there in about three weeks, myself.

Permalink Reply by Jim Pollock on December 18, 2011 at 4:50pm

Corey,

 

How do you find the well plat map? Is it on the odnr website?

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