1982vett":38l9mgwn said:
Brute 23":38l9mgwn said:
Probably old shallow wells. I wouldn't get too excited, just my opinion, based on my experience around here.
Alot of times small companies will go in and re-enter these old wells that were plugged back then and try and get a little some thing out of them.
In wells like that if you don't have a clear history on them there could be a list of problems so the O&G companies arent going to pay much in lease money and stuff like that, there is alot of risk for little return. Its kind of like, the hole is there, so they will check it out. If there is still some thing every makes a little, if not the O&G company isn't out alot.
THose wells would have to do REALLY well to inspire them to drill on your place.
One thing about the old depleted fields, the easy money and oil have been made. Doesn't mean their isn't oil that one day will be economical to go after. The majority of wells around here mostly produce in the 7000 - 9000 feet range but they are now taking another look around 20,000 feet. Recent drop in crude prices will push out development until it returns to a profitable range. Same thing happened in the mid '80s and early '90s when oil dropped from $25 down to $8. Crude got so cheap they started abandoning and plugging wells. Late '90s they came back, released, re-pooled and started drilling again. When it got to $70 last year, the work-over rigs and drilling rigs were back. Since oil has gone back thru $80 they have disappeared. When crude prices don't support production cost they will leave it in the ground till the time arrives that prices will support production.
Funny thing about slow and steady. If you own 1/8 of a well producing just 10 barrels a day. when oil was $140 a barrel, the owner of that 1/8th would gross $175 a day x 30 days a month = $5250. I'll guarantee, no matter how small the check, I bet you would cash it.
Yes a total different company could come in and try to drill deep, but the company re-entering those well has nothing to do with that. Like I said if they are kind of shallow the company re-entering may only lease from surface to 6K, then no one may have a lease from 6K to 10K, then another company has from 10K down.
YOu have to base what your lease money off of what is going on. Shallow re-entry wells don't pay in lease money like some one going after stuff at 20K, or like stuff in the Barnet Shale, or Lousianna. With the way they pull wells now, most shallow stuff doesn't last long so they will not pay for that like what they will pay for an area where they can lay out horizontal.
Kind of off the subject but, I have some wells right now in an area that are around 10K and they are laying out horizontal for around 2K ft or so. There will be two wells on one location maybe 30-40yds apart, one may lay out toward the east, and the other toward the west. The first ones that came on like that were making about 600-800 barrels of oil each and probably around 6mil in gas. We have a compressor that pulls off the three phase seperators and produces a million in gas alone. Can you imagine if they were on your place?
One location we actually went in and drilled right next to an existing well of another company, same loction. We went down to 10K and their wells were producing around 8K I believe. Made a good well.
Its funny now though because the people in that area are starting to set their standards pretty high. Have another well not far from the ones that were making all that oil and it was producing about 2 mil, choked back, and 100 bar. of oil a day (still a good pay check). But I talked to the land owner and he was like, "well I guess these aren't like the ones across the road huh? some people just have all the luckm, going on and on about it." He has like 3 wells make 2mil gas each, around 100 bl. of oil each and still complaining they didn't turn out like the others.
It blow my mind because there are people who would kill to have one well that produces half of what his do. Kind of make me sick...
