Discussing the Eagle Ford, Pearsall and Permian plays
New at this, but I noticed EOG has a lot of tanks set up with pipeline going t well and gas flaring at the Lang 11H well close to our property in Wilson County. Does anyone have any idea of what's going on?
Would greatly appreciate info if available.
EOG has a series of wells drilled along the Wilson / Karnes County line trending in your direction (i.e the Lang well area). The Lang is on the SW end of this EOG "trend" . Horizontals are being drilled NW to SE .
Drilling on the Lang 11H was completed in late January 2012. Based on what you have noticed, they have obviously frac'd the well and are seeing some good oil volumes (explanins the tanks). The gas being flared is a short term thing - I am guessing that pipeline is coming from the NE along the county line.
EOG has two more permitted wells on Lang lease (1H and 4H) - figure they will get to these and get them drilled soon. Based on other areas, I would expect EOG to put a lot of wells into a small area - they appear to believe in dense drilling patterns.
Hope this helps
Mark: Thank you very much for the information, it really does explain a lot of things. These folks (Operators) like to kinda keep you in the dark about what they are doing. Especially folks like me who don't know much about this business. Mark I think I can speak for many of us novices, we appreciate your well spring of information and your generosity to share it . Thanks again!!
Not a problem. I would like to see lessors putting clauses into their leases that puts them on distribution list for all info just like a working interest operator. Plus get copies of all the data (logs, reports, etc.). Lessee's don't like to do it but larger lease holders can get it done.
The Lang #11-H is an interesting well. It was re-permitted to be completed in a Wildcat field, after initially having been permitted for completion in Eagle Ford. The new depth seemed to be at a deeper level (Pearsall?) than EF. So far as I know, Pearsall (at least west of here in the Maverick Basin) is known mostly for more-or-less dry gas.
Marcus, that makes it even more intriguing regarding what you say about the tanks noticed by Jesse Willingham.
Maybe they did plug the vertical at the deeper level, divert horizontally into EF, and frac and complete into what is known to be an "oily" play.
James' comments @ the Lang 11H possibly being Pearsall Shale target is legit conclusion. Even though the well was permitted (the last time) to 13,500' MD, it was actually drilled to total MD of 15,584' (4 1/2" casing set to this point). 7" casing was set to 12,133' before drilling the hoirzontal.
Eagle Ford in this area is around 9500-10,000', so deeper target makes sense.
Question is: Has EOG really completed in the Pearsall Shale or have then tested it, plugged back and completed in Eagle Ford (i.e. cut a window and drilled Eagle Ford horizontal). And have just not filed the permirts to show a recompletion.
Rumors are that EOG has also drilled a deep test (Pearsall Shale?) in Atascosa County (Big Horn #1H).
I have mentioned this in other blogs, but the Pearsall has some decent liqud potentila in its updip penetrations areas in Maverick County (over 200 BC/B NGL per MMCF yields).
Cheyenne Petroleum has two Pearsall Shale completions in NE LaSalle County with their Irwin Family #3H and Cromwell #1H. Both are Pearsall Shale completions (and techically part of the old Auld Shipman Field from the 70's). Cheyenne has reported about 200 BC/MMCF yields in their RRC filings plus with the high separator gas gravities, another 150-200 bbls NGL per MMCF can be added on.
Problem with this area is H2S content in gas and lack of sufficient plant capacity to take high flow volumes
Can't talk about EOG specifically as to timing, but you should get a division order within the next 30-90 days for the producing well. There is no delay in DO's to allow for all the wells on the unit to be drilled. My personal rule of thumb is 4 months from first production to first check.
Good thing is that, even if there is a delay of 3-4 months in getting first check, the first check should include all royalty payments up to that point. Then you go month to month,.
Note that if there are NGL's involved in production stream, there may a delay in NGL related royalties due to timing delay tied to gas processing agreements.
I am not an expert, but I think that division orders are for the unit - so if there is no change in interests tied to depth, Pearsall Shale DO should equal Eagle Ford DO (so no new one is needed for deeper well).
But like I mentioned, I am not an expert
I can speak from some experience. Permit pulled march 2011 well drilled, placed into service and still waiting on the DO and royalties for that well. Yes, thats right it has been over a year since the permit to drill the well was placed into the RRC on line database. Should be anytime now on those 2 wells.
On the wells that a DO has been completed the checks are cut within the same month. Example - DO signed the first week of a given month will mean royalty check that month and monthly there after. DO signed last week of the month equates checks starting the next month.
Just curioius - what was time frame between permit being filed and well being drilling / completed? No DO will be put together before well is completed (from my experience)
Mark, I don't remember for certain--wish I had kept a time log on all of this. But I think it was about five months from completion to DO. Anyway, the first check was for five months' production.
The five months time lag fits - I can only imagine what these major companies are going thru to get all these DO's put in place with all the wells that are being drilled
For the 2 wells that I referenced.Permits pulled in March 2011, First well started late April and finished early June. Second well same pad started June 2011 finished July 2011. Both wells finally placed into production late Feb early Marcch 2012.. Not sure why the big delay to frac and once fracced why the additional delay to place the 2 on line. Problem with the wells? Delay the Tax timeframe? Company wanting to boost 2012 numbers? Pipeline and transportation issues? I have heard all these from one person or anothere over the last year or so ;)