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Permalink Reply by MJ on March 4, 2013 at 2:04pm

Julie

I asked about this on the trumbull county forum a while back and was told that the test wells can indeed be horizontally drilled and fracked at a later date.  Maybe they will be the first in production.

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Permalink Reply by Julie on March 4, 2013 at 2:28pm

Mj, I heard that a driller told the landowner that the test well on his property would never be a producing well. Trying to understand why they would tell him this unless the driller was misinformed.

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Permalink Reply by Jack Straw on March 4, 2013 at 3:44pm

What you refer to as a "test well" would be referred to as a "Stratigraphic Test" by a Geologist.

Such a well provides a lot of potentially useful information, such as:

depth to top of shale,

depth to base of shale,

log data (electric, neutron density, sonic logs, etc.)

Core data (either core barrel or sidewall cores).

 

RE: "I heard that a driller told the landowner that the test well on his property would never be a producing well."

If the "driller" was someone working at the rig site, they were there to drill the hole, at that particular time. They would not know what the ultimate intention was for that particular well; perhaps no one would know what the ultimate intention was for the well .... not until the log and core data were studied.

 

In all liklihood, the well was left in a condition such that it could be re-entered and kicked out as a horizontal well. I doubt that the driller knew what the ultimate intention was for the well.

Checking with the status as reported to the State might help resolve the matter.

If the well were listed as suspended, the intent would potentially be to re-enter.

If the well were listed as Plugged and Abandoned (P&A), then is is likely that there is no intent to re-enter.

 

All IMHO,

                  JS 

 

 

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Permalink Reply by Julie on March 4, 2013 at 4:09pm

Jack, the well has just started to be drilled!

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Permalink Reply by Jack Straw on March 4, 2013 at 4:34pm

RE: "the well has just started to be drilled!"

As (initially) a vertical well, this will be considered a Strat (Stratigraphic) test.

What is learned from the drilling of this well will likely determine whether it will (at some future date) be re-entered and drilled (and fraced) as a horizontal well.

What is learned in this well will potentially impact the perceived potential of the surrounding area.

The Operator will likely (for competitive reasons) keep the results of the well secret for an extended period of time, to protect their interests.

At this point in time, no one (especially the driller) likely knows what will be the ultimate intent.

 

All IMHO,

               JS

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Permalink Reply by Julie on March 5, 2013 at 4:15am

Jack, thank you for your detailed and helpful reply. I think it wasn't the actual driller but the lease holding company i.e. Halcon, BP, etc that said this. Does that change your answer?

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Permalink Reply by Brian Powers on March 5, 2013 at 4:33am

Julie -

Some U. S. states allowe a well's classification to be "Tight" or a "tight hole," which gave the operator/leaseholder extra time to hold and elaluate any data obtained before the data became public domain and available to any interested party. The confidentiality period varied, but in my recollection was never more than about 18 months.

 

The "driller" who allegedly told that the well would never be re-entered and produced is only a representative of the contractor who drilled the test well and would not ordinarily be part of the decision making team who after review of all data and other available investment options would potentially re-enter, drill horizontally and complete the well(s).

 

Re-entry of a test well is relatively straightforward by drilling out cement suspension plugs and drilling ahead in a normal manner. Its done all over the world everyday, onshore and offshore, and does not involve anything much different than normal are drilling issues, risks, and practices.

 

Brian

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Permalink Reply by Julie on March 5, 2013 at 5:07am

Thanks for the reply and info Brian.

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Permalink Reply by Jack Straw on March 5, 2013 at 4:41am

RE: "Does that change your answer?"

No, a company would not go to the expense of drilling a well unless they anticipated obtaining something of value.

When dealing with an O&G company, it is more important to watch what they do than to listen to what they say.

What they initially seek is information; but that information is obtained in the hope/expectation of converting it to dollars. A strat test well would be intended to provide information that would be hoped to educate them as to how to best proceed.

Decisions as to how to best proceed would be made with the input of a team of professionals that are located far from the well site. It is unlikely that a Landowner would ever meet one of these professionals, it is unlikely that any of the professionals envolved in the decision process will ever visit the well site.

I noted the legitimate reasons for drilling and temporarily suspending a "test well - pending studies of data/information obtained through that drilling.

There is another reason why an Operator might drill and suspend a vertical well - and that is to hold acreage in a cheap fashion, until such time as they return/re-enter and drill out as a horizontal well.

Drilling of the vertical portion of ahorizontal well is cheap, when compared with the costs of drilling the horizontal portion (and fracing and completing that well)". If fact, the vertical portion can be drilled with a smaller (cheaperr) drilling rig that would likely be used for the horizontal portion.

 

All IMHO,

                JS

 

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Permalink Reply by Julie on March 5, 2013 at 5:04am

Jack, It didn't make sense to me that it would never be a producing well but I am totally unfamiliar with the business of drilling although I am learning more and more each day. Thank you.

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