Fracking your own property - GoMarcellusShale.com2024-03-28T11:24:30Zhttps://gomarcellusshale.com/forum/topics/fracking-your-own-property?commentId=2274639%3AComment%3A737383&feed=yes&xn_auth=noIt sounds good in principal.…tag:gomarcellusshale.com,2016-06-17:2274639:Comment:7381612016-06-17T17:15:25.870ZKen Marxhttps://gomarcellusshale.com/profile/KenMarx
It sounds good in principal. All the previpus comments are quite valid. I know a couple of guys (a landmark and geo who did just that). They hired a rig, something went wrong, they were sued and lost all their personal savings. Be careful.
It sounds good in principal. All the previpus comments are quite valid. I know a couple of guys (a landmark and geo who did just that). They hired a rig, something went wrong, they were sued and lost all their personal savings. Be careful. All great points John and I d…tag:gomarcellusshale.com,2016-06-15:2274639:Comment:7381392016-06-15T21:12:10.112ZDaryl Brownhttps://gomarcellusshale.com/profile/DarylBrown
<p>All great points John and I don't know why I didn't think of this earlier but the reality is you as a mineral do have the ability to drill your own well and frack your own property using the skills of all the experts by simply electing to participate in the well verses accepting a lease from the evil oil and gas company. This is probably the most efficient means of you doing just what has been contemplated here although that is no longer an option if you accepted the lease bonus and signed…</p>
<p>All great points John and I don't know why I didn't think of this earlier but the reality is you as a mineral do have the ability to drill your own well and frack your own property using the skills of all the experts by simply electing to participate in the well verses accepting a lease from the evil oil and gas company. This is probably the most efficient means of you doing just what has been contemplated here although that is no longer an option if you accepted the lease bonus and signed the lease way back when. The downside to this of course is you must pony-up your pro-rata share of the money to drill the well. No here is where the trouble comes in because you suddenly begin to contemplate the enormous level of risk associated with the business when you have sit down and write out that check. Well now......... guess being a royalty owner isn't so bad after all huh?</p> Excellent remarks Daryl. The…tag:gomarcellusshale.com,2016-06-15:2274639:Comment:7379742016-06-15T14:40:08.952ZJohn Marshallhttps://gomarcellusshale.com/profile/JohnMarshall
<p>Excellent remarks Daryl. The drilling and completion cost, expertise needed, regulatory cost and burden, marketing and maintenance all are formidable. And someone needs to be the decision maker. If there is a group or coalition of mineral owners, who has decision making power? Another consideration: the unconventional business is a law of averages game. One well is too risky. Out of 10 wells (roughly $50 million D&C cost, depending on depth and lateral length), 3 may be very good, 3 may…</p>
<p>Excellent remarks Daryl. The drilling and completion cost, expertise needed, regulatory cost and burden, marketing and maintenance all are formidable. And someone needs to be the decision maker. If there is a group or coalition of mineral owners, who has decision making power? Another consideration: the unconventional business is a law of averages game. One well is too risky. Out of 10 wells (roughly $50 million D&C cost, depending on depth and lateral length), 3 may be very good, 3 may be dogs, and 4 may be average. Or all may be dogs, depending on rock quality and drilling and completion technique. One more thing. If the mineral owner is a holdout, and all the offsetting owners have leased, how much land does the holdout control? All laterals are not created equal, and a lateral less than 4000'-5000' would most likely not be economic. Recommendation would be to lease to a good operator and collect your royalties.</p> Amen Erik.
If this were such…tag:gomarcellusshale.com,2016-06-14:2274639:Comment:7380362016-06-14T15:29:49.718ZDaryl Brownhttps://gomarcellusshale.com/profile/DarylBrown
<p>Amen Erik.</p>
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<p>If this were such a profitable deal as all these folks seem to think then why are so many E&P's going bankrupt. </p>
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<p>When you have a simple mind and merely wait for the postman to deliver your check each month you tend to the think the world is a very simple place to live in when in fact it is extremely complex and risky.</p>
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<p>I can only imagine the comedy of errors and missteps a landowner group attempting to obtain permits, insurance,…</p>
<p>Amen Erik.</p>
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<p>If this were such a profitable deal as all these folks seem to think then why are so many E&P's going bankrupt. </p>
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<p>When you have a simple mind and merely wait for the postman to deliver your check each month you tend to the think the world is a very simple place to live in when in fact it is extremely complex and risky.</p>
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<p>I can only imagine the comedy of errors and missteps a landowner group attempting to obtain permits, insurance, ROW, capital, knowledge and the list goes on and on and on that it takes to successfully complete a well and monetize the hydrocarbon it produces. Even the smallest of companies have dozens of very skilled professionals doing all these complex and technical aspects. </p>
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<p>If however you are inclined then call a townhall meeting and organize your own E&P company and learn for yourself. My prediction is you would quickly go back to watching for the postman each month.............. far easier.</p>
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<p>Here's an idea for you......... instead of seeing an oncologist and spending all that money why not just develop your own cure for cancer............ seriously has anyone considered this..........Eureka</p> Thanks for adding a few more…tag:gomarcellusshale.com,2016-06-12:2274639:Comment:7378642016-06-12T04:04:59.039ZErik V.https://gomarcellusshale.com/profile/ErikV
<p>Thanks for adding a few more costs to the horizontal drilling. You asked about the target formation for a Utica well. It depends on what area that is being drilled but mostly we go for the Point Pleasant because it has a higher limestone content and therefore fracks better. </p>
<p>Thanks for adding a few more costs to the horizontal drilling. You asked about the target formation for a Utica well. It depends on what area that is being drilled but mostly we go for the Point Pleasant because it has a higher limestone content and therefore fracks better. </p> I also forgot about plugging…tag:gomarcellusshale.com,2016-06-11:2274639:Comment:7376852016-06-11T22:44:00.306ZKARhttps://gomarcellusshale.com/profile/bradr
I also forgot about plugging costs. You better set aside money while the well is producing because it's not cheap to plug even an old "vertical" conventional well. An easy well can cost between $15k-$40k and if you experience problems that number can quickly grow to over $150k. Now take those numbers and at least double/triple or quadruple for a horizontal well...
I also forgot about plugging costs. You better set aside money while the well is producing because it's not cheap to plug even an old "vertical" conventional well. An easy well can cost between $15k-$40k and if you experience problems that number can quickly grow to over $150k. Now take those numbers and at least double/triple or quadruple for a horizontal well... To piggy back on your list, t…tag:gomarcellusshale.com,2016-06-11:2274639:Comment:7378502016-06-11T22:19:59.637ZKARhttps://gomarcellusshale.com/profile/bradr
To piggy back on your list, those costs are just the tip of the iceberg as well... Impact fees/severance taxes, state bonding costs, title costs (you think you own the minerals but it's crazy how often you don't or even share them), maintaining the well pads/wells, hauling costs, regulatory costs, surveying, environmental/well studies done during planning, permitting costs, etc.<br></br>
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A landowner would be crazy to take on personal liability for a well. Even the old vertical wells (or new…
To piggy back on your list, those costs are just the tip of the iceberg as well... Impact fees/severance taxes, state bonding costs, title costs (you think you own the minerals but it's crazy how often you don't or even share them), maintaining the well pads/wells, hauling costs, regulatory costs, surveying, environmental/well studies done during planning, permitting costs, etc.<br/>
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A landowner would be crazy to take on personal liability for a well. Even the old vertical wells (or new for the matter). Unless you've been in the business you're going to be way in over your head. There are so many rules and regulations in place that by the time you paid for training and/or hired competent employees you'd rue your decision. Also what pipeline are you going to sell to? Just because there are pipelines in place doesn't mean anything - they don't have to let you sell into it. Also what if that pipeline nearby is for wet gas only and your well is dry gas? You're going to be paying a processing fee for nothing. How about compression? Impoundments, water sourcing? Geologic data?<br/>
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Quick question... When drilling Utica wells, technically what formation is actually being targeted?<br/>
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I know I'll get beat up for this but, I understand that some landowners think they deserve more and sometimes they do... However, without an oil and gas company to tap into your minerals they're basically worthless. Vertical Marcellus wells are out of the question. They are not economical and probably never will be so if you think you can just drill one on your property you're going to have a bad time. It's fine that you have a price on them but if all your neighbors are signed and you held out you're not going to get anything but watch them make money. If you live in a capture state where the first person there can claim right, they might be taken with no compensation. So sometimes something is better than nothing. I take your point, Mike, in e…tag:gomarcellusshale.com,2016-06-11:2274639:Comment:7378402016-06-11T19:41:41.863ZFrank Walkerhttps://gomarcellusshale.com/profile/FrankWalker
<p>I take your point, Mike, in event of third party, disinterested, gathering line ownership. Such ownership does not exist where I live. Here there is only one show, with <span style="text-decoration: underline;">everything</span> (wells, lines, compressor stations, you name it) owned or controlled by the same gas company. That's what prompted my analysis. Before the Marcellus there was no NG development here. That one gas company has built everything up from scratch over the last seven…</p>
<p>I take your point, Mike, in event of third party, disinterested, gathering line ownership. Such ownership does not exist where I live. Here there is only one show, with <span style="text-decoration: underline;">everything</span> (wells, lines, compressor stations, you name it) owned or controlled by the same gas company. That's what prompted my analysis. Before the Marcellus there was no NG development here. That one gas company has built everything up from scratch over the last seven (plus or minus) years. I doubt they would be welcoming of interlopers drilling in the middle of their carefully-developed patch.</p> I work for one of the large d…tag:gomarcellusshale.com,2016-06-11:2274639:Comment:7378342016-06-11T16:32:23.353ZErik V.https://gomarcellusshale.com/profile/ErikV
<p>I work for one of the large drilling companies. We drill Marcellus and Utica wells. By the time we get done paying the landowner lease bonus, royalties, gas/oil transportation costs, fracking costs, taxes, wages, reclamation fees, permit fees, pipeline right of ways, etc. combined with the drastic decline rates of the wells (especially the Utica) we aren't sure at this point that many of the wells will even break even. Why would anyone want to drill their own? Take your lease bonus and…</p>
<p>I work for one of the large drilling companies. We drill Marcellus and Utica wells. By the time we get done paying the landowner lease bonus, royalties, gas/oil transportation costs, fracking costs, taxes, wages, reclamation fees, permit fees, pipeline right of ways, etc. combined with the drastic decline rates of the wells (especially the Utica) we aren't sure at this point that many of the wells will even break even. Why would anyone want to drill their own? Take your lease bonus and your 12.5% to 20% royalty, kick back and be happy.</p> Too much risk to do a single…tag:gomarcellusshale.com,2016-06-10:2274639:Comment:7375722016-06-10T21:17:00.806Zbungalow_stevehttps://gomarcellusshale.com/profile/bungalowsteve
<p>Too much risk to do a single well, no one would fund it. Companies/investors expect a certain percentage of wells to go bust, so you need a minimum of 100 or so wells before it's palatable.</p>
<p>Too much risk to do a single well, no one would fund it. Companies/investors expect a certain percentage of wells to go bust, so you need a minimum of 100 or so wells before it's palatable.</p>