mcf question

IF SOMEONE TOLD YOU YOIR WELL WAS PRODUCING 4200mcf a day would that be good or bad?

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0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on February 12, 2014 at 12:52pm

Good, but then again that term is subjective.  That's great for a landowner but may not be so great for the producer.  Lots of variables.

Permalink Reply by DONNA M SELLERS on February 12, 2014 at 12:57pm

Thanks seems the more I read and the more I ask the more I don't know..  lol

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on February 12, 2014 at 1:04pm

So on a 12.5% LOR and a wellhead price of $3.50 that's $1,837.50/day.  If that's in a 640 acre unit it's $2.87/acre per day.  If your unit is small, 160 acres, it's more like ~$11/acre per day.  So it depends a lot on your circumstances.  

Permalink Reply by DONNA M SELLERS on February 12, 2014 at 1:15pm

Thank You

Permalink Reply by ryan c on February 13, 2014 at 3:47am
Good wells in ohio are running 30,000 mcf a day
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on February 13, 2014 at 4:25am

On the first day.  On the 30th day it's more like half of that.

Permalink Reply by william r rinehart on February 13, 2014 at 6:16am

What if annaul production is 290 what does that mean? 290,000 cfm or just 290 cfm, reading a ODNR production report?

Bill

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on February 13, 2014 at 6:20am

Production numbers are usually displayed as representing MCF.  290 MCF yearly production is basically a totally dead well.  

Permalink Reply by J.D on February 13, 2014 at 6:47am

Marcus,

Do you mind explaining what you mean by "a totally dead well" ? Also, at what level of yearly MCF production would wells fall into this classification and not be deemed economically profitable to the producer?

Permalink Reply by Nancy Mosley on February 13, 2014 at 6:59am

JD that is an excellent question and one everyone should consider when negotiating a lease. How do you know when the well or wells are non-productive?

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on February 13, 2014 at 1:01pm

Well 290 MCF wouldn't run my house for the year, so I think that's a fair enough barometer to judge a well's economic viability.  Beyond that, production needs to outpace the LOE, which varies by company.  

Permalink Reply by Paul Martinelli on February 13, 2014 at 7:28am

my last statement read 55MCF  for the month.

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