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Sandal's Journal

  • 114 Replies
  • 38371 Views
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gassyguy

Re: Sandal's Journal
« Reply #30 on: July 15, 2009, 03:50:40 PM »
Quote
%RO is~2.5 way out of the oil window.

Thanks, I didn't think there was any oil, but what did you mean by this statement?


He is referring to the vitrinite reflectance (%Ro), it's a measurement of maturity of the formation, how much of the organic matter is transformed to hydrocarbons, higher equals more gas less oil, deep marcellus is very mature ( and the really deep stuff maybe too mature) this picture is good

http://www.oilandgasgeology.com/oil_gas_window.jpg

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funk50

Re: Sandal's Journal
« Reply #31 on: October 22, 2009, 12:24:07 PM »
Quote
%RO is~2.5 way out of the oil window.

Since there is really no history on the Marcellus decline rates(at least I haven't read of any), I've been carefully tracking the decline of mine. From what I have seen charted for the Barnett Shale wells, those are declining 60-65% in the first year. I'll let you know.



Hello Sandal,

Thanks for sharing your experience with this forum. Recently Dr. Engleder published a Marcellus decline curve that if my memory serves was a power law, based upon 5 Chk horizontal wells:

http://www.geosc.psu.edu/~engelder/references/link155.pdf


I'd be curious to see if your decline curve matches any of those in this article.
« Last Edit: October 22, 2009, 12:54:31 PM by funk50 »

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hillbilly1

Re: Sandal's Journal
« Reply #32 on: January 02, 2010, 08:27:21 AM »
I am in the Friendsville group, what happened to the old format that I was reading just the other day, where everyone was talking about not receiving their checks.

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virtuallyme


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Backcountry

Re: Sandal's Journal
« Reply #34 on: February 02, 2010, 09:02:30 AM »
Thank you Sandals for sharing your story.  No imformation is more believable then some when who went through it first hand.  Could you please let me know how long it took after they first entered your property to when you got your first royalty check?

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sandal

  • 338
Re: Sandal's Journal
« Reply #35 on: February 06, 2010, 12:00:44 PM »
Thank you Sandals for sharing your story.  No imformation is more believable then some when who went through it first hand.  Could you please let me know how long it took after they first entered your property to when you got your first royalty check?

Pad preparation began in March 2008, and the first check arrived in May 2009 after some changes in the unitization, and included payment on the production for Feb. through April.

Hope that helps,

sandal

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MoMountainMo

Re: Sandal's Journal
« Reply #36 on: February 06, 2010, 01:42:33 PM »
Good Job Sandal and another round of Thanx. They're gearing up to drill 3 wells on my property in the next few months and between you're input, a great meeting with 2 down to earth pipeline land men or should I say land persons, and the forum itself, I think I finally have the whole situation pretty well figured out....Thanx Again

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Gayle

Re: Sandal's Journal
« Reply #37 on: February 06, 2010, 02:07:52 PM »
Va Fungool:

Congrats..did you say where your property is?

Thanks.

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MoMountainMo

Re: Sandal's Journal
« Reply #38 on: February 06, 2010, 04:37:10 PM »
Lycoming County, Mcnett Township

Re: Sandal's Journal
« Reply #39 on: April 22, 2010, 12:13:01 PM »
How is this well doing today?  Is the production rates comparable to what was believed for the drop off?  Has your royalty payments been received on a regular basis?

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sandal

  • 338
Re: Sandal's Journal
« Reply #40 on: April 22, 2010, 12:20:37 PM »
How is this well doing today?  Is the production rates comparable to what was believed for the drop off?  Has your royalty payments been received on a regular basis?

Decline is significant, but about what I expected.

Cabot sends a check promptly around the 25th of each month.


Re: Sandal's Journal
« Reply #41 on: April 22, 2010, 12:48:37 PM »
Would you be willing to offer up what significant is? And, has the decline leveled off, after the initial drop off, or does it continue to decline each month? Thanks.

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DoeRun

Re: Sandal's Journal
« Reply #42 on: April 22, 2010, 12:54:28 PM »
Following up on the decline rate, what was the initial flow rate and what is it currently?

Thank you for your insight.  It is a valuable asset to all landowners.

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Humphry444

Re: Sandal's Journal
« Reply #43 on: August 01, 2010, 04:25:50 PM »
fwiw if teh unit has more well potential, 2 wells decline and then
# 3 and 4 come on  stream, in yr 5, the original wells are refarced.

it will be hard to predict  royalty flow.

Bigger key is how much is coming out lifetime per acre.

Sandal's area, miight be 6BCF / 100 acres.

at 5$ gas that is 30 million , 300,000 / acre. gross revenue

RH

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dreamdog1

Re: Sandal's Journal
« Reply #44 on: November 03, 2010, 03:40:16 PM »
$700 bonus?  You did say $25 an acre on 28 acres.   Your unit was 640 acres?

12.5% Royalties.  Ten year.  13 MMCF  per day ,  with a well head gas price of $5.15 MCF.

The PA State calculator projects,  213K over 10 years.  Using Barnett gas flows.

Seems like a nice return.   However I'm wondering why Mr. Sandal didn't negotiate anything in the boilerplate lease.   $25 an acre sounds like a speculative bonus,  even though other wells in the area were producing.  And 12.5 royalty is the least allowable by law.    Did he feel like he had no power to negotiate since all the neighbors signed the same boilerplate?   Did the neighbor that had two indemnities rejected sign the same lease?

I'm just wondering what  his opinion of doing this again would  be if the well/s came in at 4MMCF for the unit?   66K over 10 Years?   

 

 
« Last Edit: November 03, 2010, 08:53:32 PM by dreamdog1 »