Can you post the article or a link to the article?
Carroll County. I believe details were released in their quarterly earnings call last week.
I thought it said peak production..is that a daily production rate or a one time peak rate?
I think it said "Peak 24 hour production" specifically. Since these calls are usually to make investors interested and/or happy, I think the results can always be considered to be "buffed" to be as shiny as feasibly possible.
700 barrell pr day x $105. =$73,500. pr day x 30 = $2,205,000. pr mo. divided by 640 acres = $3,445. 20% of that would be $689. pr mo. pr acre for landowner. That's just the oil. can anyone figure the gas they said was 3mil. pr day?
I ran it through the oil and gas royalty calculator on the left top side of the GOM home website with oil being only $100 bbl and using 70 acres and come up with $64,194 for gas and $558,906 in Oil royalty for a total of $621,640 first year.
Your math is bit fuzzy. We aren't talking about oil production here, we are talking about the liquids that are associated with gas production, which is a far different matter. The liquids associated with "wet gas" typically sell for approximately half of what a barrel of oil sells for and that is before you pay for the transportation to deliver these barrels to the point of sale.
Don't get me wrong, there is surely nothing wrong with these wells but if you are expecting royalty payments along the lines of what you laid out you're going to be a little disappointed.
Jim I did not see where they seperated the oil from the NGLs so I wonder what the oil output was for a better calculation. HELLO GOM we need a NGLs calculator, lol.
The Shaw 20-14-5H and Burgett #7-15-6 8H wells produced at peak average production rate of more than 700 barrels of oil and 3 million cubic feet per day of natural gas. Both wells are located in Carroll County, Ohio.
Does anyone have the specifics on these wells? The Harrison well had a lateral of over 6,000 feet. but it was 9.2MMCFT/day and 3000BBL/day
Read carefully company announcements. The Buell well in Harrison Co. OH produced 9.5MMscfg and 1,425bpd of NGL and oil. The 3,010bpd was figured by dividing 9,500Mcfg by 6Mcf/bo to get 1,583 barrel oil equivalent. This is a typical conversion used by financial folk for news and annual reports for comparison purposes. CHK started with a natural gas focus, I'd expect a conversion to Mcfe, but now emphasis is oil. It also states that maximum ethane recovery is expected so this is a calculated rate as far as NGL are concerned. You must run it through a stripping plant to get it all.
Ok Ill still take the above production :)