Comment

Comment by gary smith on January 20, 2013 at 1:52pm

cabot oils president called it a test well when he revealed cabot was in on it with range.

Comment by Berk on January 20, 2013 at 1:26pm

RJS,

Take a look at the plat it's hard to make out, but there appears to be a darker line as if it is the boarder for the unit. Is all of your land within this boarder? I was very amazed to see the unit was only 248 Ac's.  

Comment by sldouglass on January 20, 2013 at 1:19pm

A 330' circle? Does that mean this is only a vertical test well rather than a horizontal production well that might run 3/4ths of a mile [more or less] NNW-SSE underground and hopefully show some significant volume when it is fracked? One needs to be a petroleum engineer with some detailed knowledge of the geology and the operation to begin to make production estimates. Better to think of underground rectangles rather than circles for production wells that are drilled maybe 500 feet apart and efficiently draw gas from maybe 250' from the well bore. I think it is a wild guessing game for a newbie to try to make estimates. The smartest guys in the business make mistakes.
About all the landowner needs to know it the fact that someone wants his/her property and bargain from there.

Comment by sldouglass on January 20, 2013 at 1:06pm

Nothing negative. I am just trying to find out how royalty is calculated when there is a rich mixtures of product that is separated out and sold separately at higher prices. These higher prices are positive.
And unless I am missing the point, the Henry Hub price for dry gas seems over simplistic - and perhaps is not even the best measure for the dry gas component since the NYEX might be the more likely market for gas this close to it.
I wonder what kind of numbers the producer will use to "hit the street"?
Of course the landmen will be at people's doors at some time - and then again and again. That is their job.

Comment by Oliver Perry on January 20, 2013 at 1:00pm

RJS,

Is there any hint on the plat of where the unit boundary will be? Is that what you refer to with the 330' circle? Also could you post the plat here in pdf for the benefit of everyone? You can post pdf files in the discussion section above. Thanks. 

Comment by j. rick on January 20, 2013 at 12:53pm

my oh my, mr. negativity strikes again. rjs post what ever you want this is a forum and people like to hear things like flare stack. and see pics also.let the numbers from that well hit the street very soon. then we will see more activity from the oil an gas folks at your door.

Comment by sldouglass on January 20, 2013 at 12:51pm

I wonder whether the New York NYEX price might be closer to what you want rather than the Henry Hub. Are these prices just for dry gas? Does anyone know how the oil and separate wet gas components, the "thanes" like ethane, butane etc. are separated out and sold? How does the royalty owner get credit for these separate prices after the parts are separated out? After all, the higher prices for these separate parts is the reason the Industry is running from dry gas areas to wet gas and oil shales - more money. How does that get figured in the royalties?

Comment by sldouglass on January 20, 2013 at 12:38pm

Your answers are helpful. But people tend to think one well means a horde of wells will follow; that would be exciting. The last I looked 40% of the Pennsylvania well pads had only one well. Many more had 2, some others had 3 etc. - suggesting there are many more to come someday.
As for flares. It is my understanding that the industry is trying to get away from this waste and pollution, but this is less than possible with early test drilling before infrastructure is in place. Hopefully,if things move forward,there will not be flares lighting up the sky. That will be a good sign for the royalty owner as well as the producer who wants to sell gas. But the flaring seems to confirm that these are early test wells.

Comment by RJS on January 20, 2013 at 12:09pm

Uhhh....OK.  I thought I was just answering the questions asked of me and learning something.  I thought that was the point of a forum.  Not sure how that translates to a "Curb your enthusiasm" comment.

Comment by sldouglass on January 20, 2013 at 10:40am

Interesting stuff to learn about a well development which is useful for understanding and for historical purposes.
But a well here and there does not make a drilling program. A horizontal well may only milk 40 to 50 acres after they blast the gas loose with the hydrofrac.
How fast the other wells in a 2 square mile init is anyone guess.
As the TV show title says: "Curb your enthusiasm." On the other hand they may drill like crazy as they have done in some other areas. But there are generations of drilling to do.

• ‹ Previous
• 1
• …
• 77
• 78
• 79
• 80
• 81
• …
• 151
• Next ›
• Page