I have two wells drilled by Riley in December, 2011 and January , 2012. that are between two producing wells. These two new wells are caped, no frac has been done. The company does not reply to my request for information.
These wells are 3 miles north of Helena. Any information about Riley and why they are not putting these wells into production.
I wish I knew the answer here. In looking at Riley Exploration, LLC, they have 22 wells in Karnes County starting in 2009(from the Tx RR site). I know a well started in October, 2011 right before what I assume to be your two is still not fracked. One well they started in either May or June has been producing since July. An earlier well very close remains "un-fracked."
The logic escapes me. I hear about a large number of wells waiting to be fracked and that there is a pecking order by company size. Maybe that's the reason. It doesn't make sense to have a 11 month old well waiting.
Are these the Benchlake Farms wells off of FM 1354?
If so, less than 2000' from a Riley well that has produced over 167,000 BO & 145 MMCF that is still making over 200 BOPD.
Regardless, several reasons come to mind as to why these wells have been sitting there un-fraced
The last option may be the core reason for what is happening here (and probably in other areas). I have heard rumblings that Riley has had their Eagle Ford assets up for sale for some time. There could be capital issues within Riley that are limiting their spending and/or they are trying to minimize spending and will allow buyer to lay out the capital needed to frac these wells.
Would be interesting to look at Riley assets across the S Tx area to see if this is happening elsewhere.
Not surprised to hear this.
Riley and other companies who have "scattered" acreage in the EF trend tend to end up being at the mercy of the larger companies who surround them as to pipeline hook ups and related mid stream issues. The EOG's / Chesapeake's/ Pioneer's et al control the pipeline systems in their areas and can charge some pretty high tariffs to allow third party operator's gas to be put into their lines (plus any other construction costs for pipeline hook up, meter runs, and taps).
Just did some checking on Riley's EF production.
Total of 27 Eagle Ford wells on line as of June 2012.
Riley had max EF production of about 110,000 per month in late 2010. Total EF production down to about 30,000 BO per month as of last full month (June 2012).
With oil prices in the $90-$100 per BO range, one would think that frac'ing and bringing more wells on line would be logical thing to do to generate more cash flow.
Their not doing this (i.e. frac'ing) makes me think that something is up as to possible asset sale
Mark, I think your #3 option is correct. the benchlake unit 1 #1 was finally connected to a gas pipeline about 4 months ago. The gas had been flared for over year. Several of my other leases have been purchased by PXP and two by Marathon Oil. Problem is that Riley has such small acreages that it is not of much interest to the big players. Marathon did just purchase the Paloma Properties and continued with proposed drilling on two units I have an interest in near Davie on the Karnes DeWitt county line.
Yes, this production is just east of 80 on fm1354.
Thanks for the info and comments. I understand the Tx RRC is cracking down on flaring so this will continue to be an issue for companies like Riley.
Not a legal opinon here, but assume you could file a suit - but getting blood out of turnip may be easier to prove. Best bet may be to just wait and see if whoever inherits the interest drills the wells / of if acreage expires, who comes in to re-lease and drill
FYI to all interested in Riley's fracing update. I spoke with Mr. Riley in person this past weekend. They have started fracing Banduch 1-H on Oct. 30, from there they will travel to BenchLake Farms to frac those 2, then move to Bednorz 2-H. Riley will continue from there to others that have not been fraced, after the 1st, Riley will continue to drill more wells in Karnes and Giddings area. Good luck to all.
Thanks for the info Glen. I knew a Bednorz family in Yorktow, Texas, Steve and Max bednorz. Might be distant relations. Very good people but both deceased.
Riley let the two Benchlake wells sit for 10 months. I have an interest in the spendlove unit well 1 H, also a Riley well, but have not seen a div order even though it was producing when I was last in Texas in Sept of 2012. Maybe someone else in the Spendlove unit has some info.
Hope the other owners in the unit are doing better.