Rex just released the 5 day sales rates for the J. anderson wells.
It states in part:
The five-well J. Anderson pad, located in Guernsey County, Ohio, was placed into sales from its resting period at an average five-day sales rate per well (excluding downtime) of 1,886 Boe/d (40% NGLs, 40% gas, 20% condensate) assuming full ethane recovery and an average natural gas shrink of 12%. The five wells produced with an average casing pressure of 3,293 psi during the five-day sales period on an average 18/64 inch choke. The five-well pad was drilled to an average total measured depth of approximately 12,873 feet with an average lateral length of approximately 4,250 feet and was completed in an average of 28 stages, utilizing the company's 150' "Super Frac" design. Based on composition analysis, the gas being produced averaged 1,257 BTU.
The full release is here:
Looks good for SE Guernsey.
So are these decent wells. Doesn't look like there's as much gas as belmont or Monroe but maybe there's more of the other stuff that's valuable. It's hard to compare it to the Shugart in Belmont or Yontz in monroe
Those are good wells. They're not mind-blowing like Yontz, but I'd take those numbers all day long.
It will be interesting to see if these numbers affect the price of the offers to buy our mineral rights.
Do you think they will drop or stay about the same Philip
I would say that they will go up. It would be great if one the Excel pros could convert these numbers to royalty per acre assuming 20% gross.
That what I was hoping. I forget who done it before but it would be nice to know what royalties you would receive with a 20 percent .. come on people
Evan....my back of the envelope calculation come out about $65,000-75,000/day per well as revenue with the 18/64 choke........so with 20% royalties that would be about $13,000-15,000/day/well for the land owners to split....I have not looked at how many acres are in this unit, but say it was 640 acres......and using $14,000/day for land owners royalties should be about....... $14,000 divided by 640(acres in unit)...or about $22/acre/day......or 30 days about $660/acre/month........now remember this is for one well....there are 5 wells producing on the pad....so 5 X $22/acre/day would be $110/acre/day...or $110 X 30 days would be $3300/month/acre. If a person had say 50 acres....they should receive about....$3300 X 50 or $165,000 for a month. Remember this is for the 18/32 choke on all 5 wells.......upgrades to thinking and math would be welcomed ....ALL IMHO
The plat map says 503.95 acres in the production unit.
Ok....504 acres...thanks....so just multiply my expected revenue numbers 640/504...or about 1.27.....or 1.27 X $3300/acre/month equals $4191/acre/month......50 acres X $4191/acre equals about $210,000/month. Thanks for the upgrade......
TM...I assume that is for one well?....if so we are about equal if we multiply your number by 5......5 X $38698 = $193,490/month...thanks.