Rex J. Anderson Well Production Numbers

Rex just released the 5 day sales rates for the J. anderson wells.

It states in part:

The five-well J. Anderson pad, located in Guernsey County, Ohio, was placed into sales from its resting period at an average five-day sales rate per well (excluding downtime) of 1,886 Boe/d (40% NGLs, 40% gas, 20% condensate) assuming full ethane recovery and an average natural gas shrink of 12%. The five wells produced with an average casing pressure of 3,293 psi during the five-day sales period on an average 18/64 inch choke. The five-well pad was drilled to an average total measured depth of approximately 12,873 feet with an average lateral length of approximately 4,250 feet and was completed in an average of 28 stages, utilizing the company's 150' "Super Frac" design. Based on composition analysis, the gas being produced averaged 1,257 BTU.

 

 The full release is here:

J. Anderson results

 

Looks good for SE Guernsey.

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Replies to This Discussion

Permalink Reply by evan on December 6, 2013 at 12:10pm

wow thanks Gary..impressive

Permalink Reply by Rick on December 7, 2013 at 12:43pm

Wow! wish I was you...lol TM..lots of money!

Permalink Reply by gary SWF on December 6, 2013 at 9:57am

Note choke used 18/64 of an inch......I don't think this is anywhere close to a normal production choke.......actual production choke could produce 2x production or more,....... could be wrong, other opinions please!!!......ALL IMHO

Permalink Reply by bo boboski on December 6, 2013 at 10:56am

It"s all about the CHOKE!  And whether or not they can separate and sell the ethane/propane/butane,and all the other"tanes". What % of it is liquids. Can they separate the condensate,& sell it on it"s own? I heard that if the % of nat/gas is low, they need to choke it back more to use the pressure to push up the liquids.

Permalink Reply by bo boboski on December 7, 2013 at 1:25am

ATEX pipeline is being tested and will be in operation soon!. This allows local drillers to sell their ethane/other thanes instead of burning it off.  $$$---#s will be going up! Choke will be opened up some. Good news. Look for the Anderson wells to produce at least 2000 BOE per day per well . That should bring them $150,000. per day. per well.  About $940. a day per acre. $28,000. a month [per acre. Landowners in unit @ 20% should see $5,600. per acre per well. X 5 wells = $28,000. per month.  This all depends on your lease wording pertaining to "other" deductions/market enhancement clauses,etc. And some have sold their minerals for $7,000. to $11,000. per acre? What they would make in 2 months!

Permalink Reply by bo boboski on December 7, 2013 at 4:01am

Maybe this will get others on their calculators to see if this could really be true!. I figured they would get about $75.00 a barrel. "BOE" could be more, now that they can sell the ethane/s . Figure each unit would be 160 acres.,but I think each lateral s unit is smaller than that. Could be just one unit with 5 wells? That would change the # s on a persons royalty calc's.

Permalink Reply by evan on December 7, 2013 at 4:10am

The same person owns all that acreage on the Anderson wells so maybe they didnt break it down per lateral.. not sure. Do they usually make the unit just the size of the 1st lateral then expand the unit for the next one

015334grltd9mPermalink Reply by 015334grltd9m on December 7, 2013 at 4:17am

yes, one lateral historically takes 100 plus acres.

Permalink Reply by bo boboski on December 7, 2013 at 5:37am

Capstone Holdings is the only Owner listed. Unit is 504 acres.  5 laterals.  each averaging 2000 BOE. M/L  with full ethane sales.$22.5 mil. per mo.  divided by 500 acres = $45,000. per acre.  per mo.  x 20% = $ 9000. per acre.

Permalink Reply by bo boboski on December 7, 2013 at 6:09am

Where are all the naysayers, with calculators? Is $9000. per month ,per acre a pipedream?

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on December 7, 2013 at 6:46pm

"I figured they would get about $75.00 a barrel. "BOE" could be more, now that they can sell the ethane/s "

-bo

BOE price is hard to determine because of all of the inputs.  Last time I read any breakdowns it was for GPOR wells (sorry, don't remember which ones) and the price was right around $40.  That obviously fluctuates based on what percentage the liquids are.

Permalink Reply by David Perotto on December 7, 2013 at 6:26am

Bo,

This well is about 100 acres (rounding for ease of math). BOE might not be $75, I have read $50. So lets do a conservative calculation for $50. That would be $100,00 per day for the 100 acre well. Dived by 100 acres = $1,000 per day. Divide by .20 (20% royalty) = $200 per day royalty per acre. Not too shabby.

Considering a production curve, remember after one to one and half year the well will be producing "only" $60 per day per acre. The production curve then flattens out and you could see about $50 per day per acre for many years, which is about $1800 per year per acre.

So:

Year one: maybe $36,500

Year two: maybe $18,000

Years three through 15: maybe $1800 per year

All per acre. I have a hard time believing these numbers but maybe true.

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