McDanel and CTG well activity

The last few days I've noticed activity at both gates, but can only see the McDanel well. There have been a strange looking trailer moved in, a bobcat, and misc other things i can't get close enough to see. I suspect the same thing is happening at the CTG well. I have to wonder if they are getting ready to clear the well of frack water and back flow then maybe finally flare? They plan on doing the gathering lines later this year I think.  Dunno, but I might drive in one of them and ask questions some day.

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Replies to This Discussion

Permalink Reply by craig on July 17, 2014 at 8:11pm

Michael, I'n not so sure that Range would have these wells online yet either.... because of the lack of infrastructure.  

CHK was forced to drill a lot of these wells or else they would have lost a bunch of big land leases. We all know they don't need to lose anymore money. Things are tight for them, however they are making progress hooking up the wells as evidenced by the big pile of pipe reported near the Powell well. Patience my friend!!!

Permalink Reply by Michael on July 18, 2014 at 9:33am

Yes, I know I need more patience. Thanks for the update.

Permalink Reply by Michael on July 22, 2014 at 11:16am

Well it appears that the collection lines may be going in soon for CTG and McDaniel. There are some signs posted indicating the access for Benson. I assume that is the company that will be drilling. And a couple other small signs that mentions the collection lines.

Permalink Reply by craig on July 22, 2014 at 1:38pm

Yep, saw the same  thing, but was gonna wait to say anything until dirt started being moved. ; )

I can say that the really big pile of pipe at the Powell well area is their storage area for all gathering line pipe. They are going to dig somewhere soon and these wells as well as Rolling acres and Maga are the only ones that have completed the permitting process and not installed, from what I can find.

Permalink Reply by craig on July 24, 2014 at 8:00pm

I just took a ride around and find that no dirt has been moved yet for the gathering lines for these two wells. However the few spots of trees that are in the ROW for the gathering line are being cut and cleared as I type. Porta-Johns were moved onto the McDanel site today as well, so we are close to dirt being moved!

Permalink Reply by Michael on July 25, 2014 at 8:49am

That's a good sign. My wife noticed more signs were put up where those other signs are at that I mentioned the other day. Frack baby frack, drill baby drill.

Permalink Reply by craig on July 31, 2014 at 10:01pm

An update for those that don't have the opportunity to drive around the area.

About 80% of the ROW to the CTG and McDanel well sites has been cleared and ready for topsoil removal and trenching for the gathering line. I suspect in the next few days they will be finished and we can expect the digging to begin. Before you know it the line will be finished. I also see where the final (i believe) permit needed to start the line going to Rolling Acres and Maga wells was approved.

Things will only go faster in our area now!

Permalink Reply by Michael on August 20, 2014 at 7:30pm

Question, Does anyone have a "rough" idea of how much per month a royalty check is? I realize that it's 12% or 18% of the net, or something to that effect but how does that compute to a monthly check, how much an acre, $50 an acre, $100 an acre, more, anyone have any idea?

 

By the way Craig, I talked to a guy this evening who I working on CTG and McDaniel wells and they're suppose to be in production in a couple of weeks, what he told me. He said It would be 6 months before you saw a royalty check.

Permalink Reply by craig on August 20, 2014 at 9:36pm

I suspect it will be more than a couple weeks before it makes it to production. The line from ctg/mcdanel is going to join the line that goes out to Rolling acres/maga wells, then all head to Lime Kiln for processing and selling to Dominion's line right there

He probably meant (or he just doesn't know) the line will be completed and tested to where it connects to the other line headed to Lime Kiln. They just started the line from Lime Kiln to Rolling acres/maga, so until they make it that far there is no where for the gas to go. That's what I understand from various sources. 

He is right about not receiving royalty checks for up to 6 months. Some have received checks 4 months out and some are up to 6 months.

I've seen check stubs all the way from $70/acre to $22/acre per month. Production is a hard thing to wrap your head around as many factors come into play. First there is the number of days of production in the time period. Currently not all the wells that are hooked up produce every day, it appears that in the past wells are sequentially stopped for others to produce. I'm not sure about now days.Then factor in how far back they are choking the well. Then the price comes into play, then the deductions. I'm looking at a stub right now from april for the Tharp well. This individual had 15.8% of the gross royalty deducted for gathering etc.He netted $23/acre, but I don't believe it produced every day. Don't count your chickens before they hatch! 

Thanks for your input... the more we share the more informed we can be.

Permalink Reply by Michael on October 7, 2014 at 8:35am

Hey Craig,

What's the latest news on our wells here?

Permalink Reply by craig on October 7, 2014 at 6:41pm

Gathering lines are in for our two wells. They appear to have passed the leak test. The line to lime kiln and from rolling acres/maga has been buried to old blackhawk road from Rolling acres. They are drilling under the road right now and then will continue burying that line to ours then to lime kiln.

Mind you that no large amount of water is listed as being produced at either of our two wells. So i'd say they gotta get the frack water  out and flare it next. Then production.

Gotta go

Permalink Reply by craig on November 30, 2014 at 10:04pm

Finally took a walk over the proverbial hill to see if the equipment at the McDanel well was processing  any gas. I could hear the heater treater running to be sure. I'm fairly sure I heard gas flowing through the pipes, but there was a corn dryer running 1/4 mile away... plus the fact that i couldn't get any closer than 70' or so.

If the heater treater was running they must be producing. Unit holders should see a check in 3-5 months knowing CHKs history. Of course the well may not produce every day, or month either. Only CHK knows at this point.

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