Everything seems to be VERY tight lipped on this well. Location is very well secured. Anyone know whats going on?
yes, I have already decided not to accept the initial offer. I have been speaking with an OG attorney and have a page of addendums to be added to the contract when I counter offer. Also, shopping my rights to other companies in the area. Everyone I talk to tells me TXO offers are the smallest, so I am being patient. And yes, I have been advised not to accept less than 20%.
I have no plans to accept the initial offer, and have consulted with an OG atty who has added several addendums to their initial proposal. I have also been advised that TXO typically offers much less than other companies in the area, so I am being patient and shopping the mineral rights. And, Yes, I have been advised by my OG attorney to accept no less than 20%. Thanks for your insight.
Leor filed a well record only with the RCT indicating the well is a shut-in producer. Completion date is listed as 9/27/2011
What does that mean?
Basically, it means they hit gas in what appears to be in paying quantities, but for whatever reason, have chosen not to bring it online yet, and the well is shut in.
The temp at the bottom was 389 F - pretty hot - someone with more geology background will need to tell us what that means, but I think it means no liquids, and probably good chance of high CO2 as was previously noted by Bosco
The well was logged with 18.5 lb mud - someone here can translate that into a maximum pressure - I take it as a good sign
The productive interval is listed as 17076 to 18402 - If its actually productive across that interval, its a heck of a potential well.
There are shallower formations there that might be of interest - Buda is at 8074 - but for whatever reason, we don't get information on the formations below 11952 - It could be that the RCT form only has the space for 6 formations, or it could be that some of the things they found between the Pettet and the target were also of interest. The conspiracy theorist inside of me likes that.
One of my Apple Springs contacts mom lives near the intersection of Hwy 94/FM 357 and says there has been continued movement of equipment to the site in the past few weeks. Some of what was described sounds like a decent sized vertical separator. No word on any pipeline activity or on any transports carrying liquids.
Ok, new filling on 11/22/2011-
The well is listed with an IP of 1300 MCF/day with 176 bbl water and no condensate.
Static pressure is 11,415 psi, flowing pressure of 2040 psi.
no details of a frac - is it possible this is the open hole flow rate, with no frac?
eye witness says they are building or have built a fairly large gas processing plant - probably an amine unit and glycol dehydrator - much larger than would be justified by 1300 mcf/day. Also, someone said they saw trucks working for the electric cooeprative that direction a few weeks back.
Is this good news for the lease holders nearby?
I think the gas processing plant that appears to be going up on site is good news - it suggests Leor might be active in the area. The pressure is excellent, but the decline between static pressure and flowing pressure suggests they need to either frac it, or refine the frac used.
At this depth, its going to be dry gas, and i don't see a huge rush unless someone comes up with liquids at a shallower depth - there won't be any way to know what Leor found shallow unless or until they try to produce it. I have ancedotal comments suggesting some of the other wells in the area have found unconventional liquids in the past, but no way to confirm.
If I were leasing minerals in the area, I would focus on getting a short term lease (no more than 3 years) with good royalty. I'd strongly avoid long leases such as the 4+4 leases that were done in the smackover, and i'd tend to push for a high royalty rate - 1/5 to 1/4. I don't know if anyone will get that, but anyone willing to give a 3 year lease @ 25% is planning to drill.
Does that make sense?
It does dbob...All the leases including mine will expire in August of 2012. I have 100 acres located 7 miles SE of Forestar#1. I guess now its a waiting game to see if Leor wants to explore around me. If not, I hope someone else does! Thank you so much for the information!
The initial completion reports appear disappointing. Although it may not be a good comparison, the results appear similar to the Ruby Flournoy well (API 005-30383 ) located in south Angelina County that was drilled by Range Resources in 2009. This was an deep Bossier Sand well (not fracked) that tested at only 2 mmcfd and has only been marginally producing since then. The producing intervals were only two 20 feet zones around 17,500 feet.
Is it typical to install a pipeline and processing plant before fracking a well (not knowing the final production)?