super tight spacing on CHK wells - 250'

Long wells Harrison county.......can this be right?......3 wells with lateral spacing at 250'?......they could pack 7 wells in this 416 acre unit (9 wells if the state relaxes the 500' standoff).....and these are 7,000' laterals!....they show recently drilled........good to see chk trying some different completion techniques.....will be interesting to see production numbers..........this is the tightest spacing i have seen.

Atlas' nearby Reese/Cramblett wells are at 450' spacing there should be some production data on those for 4th qtr.........a bunch of others are at 500' or more..........but 250' is tight.....super tight.

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Permalink Reply by Booger on February 10, 2014 at 10:13am

BIG - being stuck in a 160 would be a good thing if your well was one of the best producers from the pad..........it's all relative.......you wouldn't be sharing royalty with the other acres that have less productive wells - so you would actually get more royalty...........another thing - the operator would have to drill out the whole pad by the end of the lease term to HBP (vs one well holding 640 or 1280)....that could be good if you were in a hurry - or bad if you think the technology will improve results, and you didn't mind being HBP'd in a 640/1280 with a single bore for a while (like the experimenting that stated this discussion).

there are other variables too...........I am still not convinced that not amending is better than ammending.

Permalink Reply by BIG on February 10, 2014 at 10:49am

Booger- You are right about owning more of the unit in a 160. 

The way I look at it is if someone gave me a check that could be worth 2 million or someone gave me 8 checks that could be worth  600 thousand each, I would take the 8. 

Permalink Reply by pg guy on February 10, 2014 at 11:16am

To have a smaller interest in a bigger unit is analogous to diversifying your investment portfolio by buying a mutual fund rather that an individual stock.  You have lowered the possible exposure that a single well poses from a bad completion, or a downhole mechanical problem, or delay in drilling on your acreage.

Even if your acreage is in a geologic sweet spot, much can go wrong that could limit your long term revenue.  If you are in a sweet spot, it likely will extend to at least some of the other potential laterals, providing more stable, longer term payout. 

Permalink Reply by Bill Barnaby on February 9, 2014 at 10:11am
No one has any clue what royalty they will have till all ten wells are done. Your land could be a monster and the other 30 share holders could suck. This is purely opinion till the numbers flow.
Permalink Reply by Booger on February 14, 2014 at 11:17am

this is interesting..........even tighter spacing experiments in the eagleford at 175'.......and vertically staggered.

 

http://eaglefordforum.com/forum/topics/pioneer-natural-resources-fo...

Permalink Reply by lettijack on February 14, 2014 at 4:51pm

For the time being, put this under the rumor category, but the company doing seismic in Westmoreland County Pa are saying that Consol is going to experiment with 300' spacing on the Marcellus.  I've seen Consol's permit application showing 12 laterals from a single pad and, in my opinion, there is no way they can fit that many using their usual 750' lateral spacing.  I'll provide an update once I know more.  

Mike MurphyPermalink Reply by Mike Murphy on February 15, 2014 at 1:39pm

HUNTER GREEN IS PLANNING 18 WELLS ON ONE PAD IN OHIO NEAR SARDUS ......DRILLING INTO THE MARCELLUS AND UTICA FROM THE SAME PAD ......THE WELL HEADS WONT BE 500 FEET APART THEY WILL BE SIDE BY SIDE ABOUT 50 FEET APART .........ALSO I THOUGHT EVEN IF U ARE IN A 640 ACRE WELL PAD U ONLY RECEIVE ROYALTIES FROM WELLS THAT ARE DRILLED UNDER UR ACREAGE AND NOT EVERY WELL ON THE PAD .....IF UR LAND IS NOT PART OF A WELL U GET NOTHING 

........AM I WRONG ON THAT NOTE ????? I AM IN A UNIT THAT HAS A WELL DRILLED BUT MY ACRAGE IS IN THE NORTH SIDE THE WELL DRILLED GOES SOUTHEAST AWAY FROM MY ACREAGE .......CHEASPEAK HHAS TOLD US WE ARE NOT INCLUDED IN THAT WELL FOR ROYALTY PAYMENT .....SO THAT TELLS ME IF THEY DRILL 6 WELLS WE MAY ONLY BE PART OF 2 OR 3 WELLS ....MAYBE I AM MISUNDERSTANDING WHAT UR SAYING HERE .........FROM THE WAY I READ WHAT U ARE SAYING IF UR IN A 640 ACRE UNIT EVERY WELL WILL PAY U ROYALTIES  AND EVERY ACRE WOULD GET PAYED ?????

Permalink Reply by evan on February 15, 2014 at 1:54pm

Mike thats a question I have . I am in a CHK unit. They drilled one well so far.. but not under me but everyone is telling me I will get royalties. These people are very knowledgeable also.  I looked on odnr s website under the permit for that we'll and I am not listed as a person who will receive royalties. I m convinced I won't get royalties because they put together a 639 acre unit. Then when they got a permit they broke it down to 137 acres to cover the one lateral they drilled.  I will call CHK and see what they say 

Mike MurphyPermalink Reply by Mike Murphy on February 15, 2014 at 7:14pm

I  cant see u getting royalties if they are not taking ur minerals either ......only when and only wells that are drilled using ur property will u get payed 

.....if i had a well drilled under my property i wouldnt want to have to split it with the whole neighborhood 

Permalink Reply by Booger on February 15, 2014 at 7:36pm

guys - you may be held out for now but if you have a pugh clause then they will certainly put you in the unit before your lease term in order to hold your land and then you will recieve royalty...........some production units are full size right off the rip.......some not........you dont have a choice.

Permalink Reply by evan on February 15, 2014 at 7:37pm

I can't see it either but quite a few have told me I will .  Then I looked at the declaration and it says , can't remember the exact wording , that royalties will be paid to everyone in the unit according to what their decimal interest is.  I'm not counting on it though

Mike MurphyPermalink Reply by Mike Murphy on February 15, 2014 at 7:43pm

there are drilling units and there are well units ....a drilling unit could have 6-10 well  units in it only the land in a well unit will get royalties from that welllif u have only 1 acre in a 640 acre drilling unit u will only receive royalties for the one well unit  ur acre is in  Bogger u better talk to ur producer before u get ur hopes up of getting royalties off every well drilled in ur 640 acre drillling unit 

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