60 acres would restrict the depth you could drill
how would you get product out to market?
pipeline runs right through it, and some could be tanked out i would think. why would 60 ac restrict depth ?? explain
I believe that the deeper you go....the more acres you need in the unit.....cause you would/could potentially be draining
from the neighbors.
Someone's pipeline runs through it.....who says you would get access to it.
Don't forget the liability if it leaks.............
Don't see how you can leave costs out of the equation....wouldn't this well be drilled to make a profit?
As Jon pointed out, liability would be the biggest concern here, for sure.
Would the well be for NG/NGLs or oil?
You could probably drill a vertical well.....but why would you? If the gascos aren't seeing any profit upside to a vertical well, I would take that as a big fat NO, they are not profitable.
And don't forget the cost of plugging a well when it stops producing.
Good point about the access to the pipeline; I would guess the operator would make you jump through hoops to get hooked up. If it is not a lower pressure gathering line, you would need your own compressor station to hook into a high pressure transmission pipeline.
This is all in my most humble opinion, and I wish you well (pun intended)!
i like your Pun. Well, i use that loosely.... there are a few smaller unconventional drillers who say it is tottaly possible to drill a very profitable well on smaller parcels. Second meeting i a few weeks......to be continued.....
Can you? Sure. Should you? I doubt it. If you don't care about cost and making a profit, go for it, but good luck.
There are so many aspects to planning/drilling a well that no one knows about. I don't think it would work out well for you unless you have very deep pockets and all the time in the world to plan the operation and hire all the different contractors you'd need, among other things.
By the way, I assume you are talking about a deep horizontal well. If you are talking about a vertical well, then yes, that is more reasonable.
Go Big or go home..... i am not running the bit myself. there are local Ohio drillers who will develop smaller tracts and it is an option if you get left out of a unit. Why all the negativity, i thought this would be good news that we, meaning land owners can still develop our land with out the Giant Companies steam rolling us. do i want to be included in a large unit , yes but if they let me go or cut my property in half like they did down the road i want to have options...... the American dream im trying to MGGA Guernsey. :)
That is interesting....partner with a 'wildcatter' to tap their expertise, and supply some/most/all of the needed capital for development. You get a percentage of the net.
Get yourself an EXTREMELY competent O&G attorney and equally competent CPA...just my two cents.
How would one go about checking their success rate.....their references, if you will? I would want to speak with people in your situation that have used the O&G company you choose.
Not trying to be negative here, as I am neither a pessimist or an optimist....I prefer the term realist. LOL,,,,but always willing to learn. Thank you for sharing this concept...it just might catch on in other places!
I admire your spirit and willingness to explore the option. Getting the gas (if it is a gas well) out to market could be a challenge....an oil well may be less problematic, as you mentioned the trucking option.
Please keep us posted, and the best of luck to you!
It can be done, but a lot will depend on the area. I am assuming this will be a vertical well, as 60 acres is not enough to do a deep horizontal in the Point Pleasant and I strongly doubt that a vertical Point Pleasant would be profitable meaning that you will be targeting shallow, more conventional horizons since you mention the local Ohio Drillers. I caution you to make sure you are aware of your target zones! These shallower zones are more dependent on local geological features. You may want to hire a geologic consultant to evaluate the area.
60 ac was just a hypothetical, i have 250 ac. lets say they leave half out of a drilling unit like they did down the road. they just let it go and it is not leased. i now have a large parcel to be developed by as you say a wildcat operator, except the guys im looking at have drilled many many wells. it is a very possible option if you do not want to wait for the big boys. Again, i do want to be ALL included in a deep unconventional well but that does not always happen. So why let my valuable unleased acres just sit around....... #MGGA
Absolutely possible! Do the operators have experience drilling horizontal wells as it is definitely a different ballgame? Have they drilled the Point Pleasant and do they know what zone to target within that section, as it as not as simple as laying a horizontal anywhere in the zone and getting a return. I am not saying it can't be done and should be explored. I am just providing some insight from as a geologist. Would you be hiring this company to drill the well or would they have a vested interest, i.e. a working interest partner!
Another big obstacle is getting the gas to market. Sometime getting capacity in a pipeline and a tap along for a single well will destroy the economics for well. Although this could be mute if the companies you are working with already own the capacity and have a market for the gas. If I owned 250 acres, I would also want it to be used and made profitable if it was not included in a unit.