Replies to This Discussion

Permalink Reply by monty deruyter on July 23, 2011 at 12:05pm

Robin, you may have better luck getting a response if you post this in the forum section. I'd like to know as well.

Permalink Reply by craig on July 23, 2011 at 2:34pm

Joined your group so I can reply.....

I live fairly close to the Thompson well. There is only speculation, no hard facts or public projections of any kind so far. The only projection I've heard from Chesapeake is that through the lifetime of the wells here they expect 7 billion (If i heard right) cubic feet of gas per well, sounds high but what do I know!  Not sure how they are basing that though.  The most popular speculation is that the well is heavy in condensate along with some crude oil.  They started hauling water for fracing purposes about 3 weeks ago and I believe the frac job should be done soon. The well is connected to the onsite processing facility and the processing facility is connected to the 30" main pipeline that runs through the same area, for distribution. We won't know the numbers for sure until the first checks start arriving.....but who knows when that may occur.

 

Permalink Reply by Robin Hood on July 24, 2011 at 2:59am

7 billion sounds right. Any lower and at $3-5million  well cost, it wouldn't be profitable. At 5 dollars a million btu-MMbtu(that's the quantity the nyse uses) that well would bring in $35,000,000 over its life time. At 15% royalty that would be $5,250,000 divide up proportionally among the landowners. If there's oil then these numbers increase drastically, currently, a factor of three times as much. So the leasing is small potatoes.  However, once the numbers are out on the street and are good, that will be another tool in our back pockets for those of us who haven't signed a lease as yet to hold out for the best deal. To me that would be the largest royalty percentage.

Do you know did they drill all six horizontal legs? Or just 1 to tie up the leases until they build the infrastructure?

 

Permalink Reply by 2s72s0k9mm8gd on October 22, 2011 at 11:07am

A voice of reason amongst all the "naysayers"! Thank you Jill for this logical take on the "HELD BY PRODUCTION" Boogyman! I will gladly take smaller royalties now for the sake of bigger royalties later for a longer period of time. Thanks again.

Permalink Reply by Utica Shale on November 4, 2011 at 7:49am

Drill Baby Drill,

 Unfortunately, the Thompson Well in the picture posted by Robin Roberts is in Beaver County, PA not in Ohio. Therefore,  there no information at the ODNR website for that well.

 

 Maybe,  you can get some information regarding PA Oil & Gas Wells from here ...

 

http://www.dep.state.pa.us/dep/DEPUTATE/MINRES/OILGAS/oilgas.htm

Permalink Reply by craig on November 4, 2011 at 1:33pm

Yes I am familiar with the DEP site. However, DNCR of Pa is where you get well completion reports from. I'll make it a point to email their contact and see if they have the well completion reports for the Thompson well. As of mid Sept they didn't have it yet and was told to ask again in a month or two. 

Reporting in Pa is different than Ohio and I forget how often they have to report, will look into that again as well.

I DO know that the well is producing, or was the last time I was over there. I also know that the unit members should get their first checks in Dec sometime. I should be able to see the report from a friend when they do get their first check.

One thing interesting though is that CHK claims it is a dry gas well, however they added 6 400 barrel tanks to the mix sometime ago, as well as two others that are now gone. I can't imagine what they need those 6 for : )

 

Permalink Reply by Utica Shale on November 4, 2011 at 9:08am

Robin,

 as of Sept 28 ...

 

 The Thompson 3H in Beaver County, Pennsylvania was drilled to a lateral length of 4,322 feet

 and achieved a PEAK rate of 6.4 mmcf per day of dry natural gas.

 

 That is good.

 At $3.00 per 1,000 Cubic Feet that is $19,000 of gas per day.

 At 12.5% Royalties that is $2,375 PAID to the landowners in the Drilling Unit per DAY !

 

 The question is how long can that very high production rate be sustained ?

 And that production is with only 1 horizontal leg.

Permalink Reply by Robin Hood on November 4, 2011 at 12:43pm

How many acres is this drilling unit?

If the lateral length is 4322' in one direction. Another in the oppsite direction is a total of 8444'. I would guess this unit would be a 1280 acre. Anyone concur?

 

 

Permalink Reply by craig on November 4, 2011 at 1:52pm

Just checked our county website. The Thompson well is listed as exactlyl 809.961485 acres.

I did see where they filed an amended unit for this well, but right now I can't get access to it.

There is only one lateral headed NNW, no others. 

Originally they filed that the lateral was to be 6182 feet. They must have ran into more than they bargained for.

 

Permalink Reply by Utica Shale on November 5, 2011 at 7:38am

Craig,

 Please post the web link to the data.

 809 Acres is a huge Drilling Unit for a Horizontal Bore of only 4,322'.

Permalink Reply by craig on November 5, 2011 at 9:49am

Mr shale : )

The unit was actually changed in Oct to 841 acres.

Here's the link to get to the page to find the unit declaration document.

http://www.searchiqs.com/pabea/

NO password needed, just hit login then next page I agree, Then type in the instrument #  3397904 at the bottom of the page. Hit search and there ya are.

The well completion report is not available yet from the state DCNR. The 4322 lateral is what CHK posted in their news item. The original filing with the DEP for a permit had it as 361 acres to start with..and it shows only one lateral. 

 

Permalink Reply by Utica Shale on November 7, 2011 at 3:46am

Craig, 

  Many of the newer leases in Ohio prevent Drilling Units from being over 640 acres. Typically, in Ohio, Chesapeake draws a 500' border around only the existing Horizontal Bore (no other "future" wells are included). So, a typical Drilling Unit in Ohio includes the 1 mile long (horz bore) plus another 500' on each end and then 500' on each side - creating a rectangle of roughly 6,280' long x 1,000 wide. This creates a Drilling Unit arround 150 acres - 200 acres in Ohio.  There are some old leases in Ohio that may allow larger size Drilling Units, time will tell.

 

  I see that the Thompson Drilling Unit in PA is about 2,000 feet wide and includes land from South East of the PAD for the proposed horizontal bores that are not even drilled, yet.  All 809 acres are now Held-By-Production as long as that first well is producing. Any idea when Chespaseake will drill the other 5 wells or even the next well at Thompson?  My guess is,  since they have this acreage Held-By-Production the Drilling Rig has moved on to a new location and won't be back for some time.

 

 In Ohio it would take about 4 or 5 wells to "Hold" 809 Acres.

 

 I read, that some Geologists believe that Hyrdaulic Fractures can be created up to 1,000' from the Horizontal Bore but the natural gas can only be extracted from the inner 500' because the outer 500' collapses when the water pressure is removed. 

 

 Interestingly, in Ohio Chesapake is using a 500' perimeter but in PA, at the Thompson site at least, they are using a 1,000 perimeter. Maybe a State Regulation is involved here.

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