Unit sizing

Is there a general rule of thumb on how far from the horizontal hole that a unit boudary is drawn. I know it probably depends on geology, but when they frack there must be a common distance from the bore where they draw the unit size when they are doing their pre-drilling planning.

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Permalink Reply by t j on April 4, 2013 at 12:15pm

Question ,If they just have (example ) 50 acres and drill and hit wet gas do they have to include the surrounding arerage or can they just use whats under their pad? Since they hit the wet gas vein they won't have to frack?

Permalink Reply by Jack Straw on April 4, 2013 at 2:08pm

RE: "Since they hit the wet gas vein they won't have to frack?"

A good frac job is more important for wet gas than dry gas.

As a general rule of thumb; the smaller the molecule, the better able to pass through a tight (low porosity/permeability) space. The constituents of wet gas (Natural Gas Liquids) are larger sized molecules than the methane (dry gas) molecule. Therefore, fracing is as (or more) critical for the production of wet gas as for dry gas.

 

JS

 

 

Permalink Reply by Jack Straw on April 4, 2013 at 2:42pm

RE: "Since they hit the wet gas vein they won't have to frack?"

An additional comment.

You used the terminology "wet gas vein".

Gas (wet or dry) does not reside in "veins", like gold; instead, it is distributed throughout the shale in myriad tiny pore spaces.

There are natural fractures in the shale (referred to as joints).

Fracing helps open these joints; and with proppants, hold these joints open.

Fracing also creates additional fractures that proppants in turn hold open.

These joints and fractures (propped open with sand or ceramic balls) provide a high porosity avenue for the Natural Gas and any Natural Gas Liquids present and any Oil present to move out of their pore spaces ... and into the bore hole.

 

Without the permeability induced by fracing, hydrocarbons (dry gas, wet gas, oil) could not be produced in economic quantities from the shales.

 

 

JS

Permalink Reply by t j on April 5, 2013 at 1:59am

Jack, Thanks very much this clears it up for me. I am less than a 1/2 mile from where they are building the cryogentic  plant in new middletown  and was hoping they put a well on that property.

Permalink Reply by Robert J. Smith on April 11, 2013 at 3:44am

For all who have 640 acre units in their lease  contract CHK is trying to convince us to go for 1280 acre drilling units.  That way they can tie up more leaseland within the contract time limits with less wells.  There selling point is that there may be more minerals in the 1280 than just taking a chance on the 640.  When you ask them what they are offering to go with the larger drilling units they say "Nothing".  This is all a one sided bet in CHK favor.  It can be stopped only by refusing to go with the larger drilling units unless CHK comes up with more cash.  This is an opportunity for those who got little from CHK for their lease to substantially increase increase the lease amount per acre by writing a new contract. 

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on April 11, 2013 at 4:13am

The problem Robert is that CHK is pretty unlikely to pay for any of these modifications.  They can drill a 640 unit and just deal with it.  Do they want 1280?  Sure.  But I doubt they're willing to open up their wallets (which are currently empty) and pay for something that they don't strictly need.

Permalink Reply by Robert J. Smith on April 11, 2013 at 5:00am

Then there is the other side of the coin.  Since CHK does not have funds to pay for the alteration of the contract what makes you think they have the funds to drill two wells instead of one to tie up the 1280 acres.  The cost to drill the extra well to lock in the 640 acre leases would cost a lot more than paying to alter the contracts. Besides, once these contracts come near to expiring CHK will have to come up with a chunk of money to extend if they have not drilled. CHK is going to have to decide what will cost them less.  I am betting they will pay to alter contracts.  I also see no advantage to us to give CHK the 1280 drilling units for nothing.     

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on April 11, 2013 at 5:59am

They're not paying for the bulk of the drilling cost within their JV acreage, so that's not really an issue.  And there isn't any real advantage for you if you grant them what they want for free.  Welcome to dealing with CHK.

Permalink Reply by John OBrien, landowner advocate on April 11, 2013 at 10:19pm

landowner,

In ohio they tend to drill horizontals to the NW and SE of the surface entry point.  There is the 500' rule.  However they seem to be doing units in odd sizes, not necessarily 640 acres (often times much less), and almost never a perfect rectangle.

These are the misnomers landowners have run into.  They are sold on signing a lease thinking, "Gee, I have 100 acres, so I should get X dollars."  When the truth is they may get only a small portion of their acreage included in a unit.  It is all up to the O & G companies geologists.  This is why the up front money means so much.

Good Luck

Permalink Reply by landowner on April 26, 2013 at 6:17am

Looks like the Caesar Unit just got recorded 1028 acres.

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