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1) we own 3% of this well
2) oil prices are down
Moroni 11M-1107 Well Production
Go To Link
http://oilgas.ogm.utah.gov/Data_Center/LiveData_Search/prod_lookup.htm
Put In API Well Number:
4303950005
Sun7,
No idea what is going on in Utah. I presume we are still in the well clean-up phase and we are waiting on that for news on well production rate.
I think this is a buying opportunity based on Eagle Ford, Bakken and Colorado holdings. At some point oil and gas prices will recover some. Imports from Canada are slowing the oil price recovery. I don't know exactly when but when Compressed Natural Gas Exports kick in it is going to spike natural gas prices.
chilar4567,
I sure hope this one doesn't turn out like "PBLS".
Platypus,
Thanks for the update. Sounds like good news. Are there any restrictions on how much gas we can flare or oil or water we can produce? Thanks again.
Nothing unexpected.
Gentlemen,
I did not see Natural Gas Absorption Technology mentioned in the filing. They mentioned several including "Gas To Wire" which I think is great long term for stranded gas with no pipeline. I own a company that does exactly this ( http://ener-core.com/ ) stock symbol ENCR. Evidently there are some problems getting a contract with the local power company.
In the interim I would like to suggest that Whiting sell some of this high BTU gas rather than flaring it using this companies Natural Gas Absorption Technology. Also it is lower pressure than the 3000 psi mentioned in the filing.
http://energtek.com/
Oilcard,
I think this is the report you are looking for.
http://www.redchip.com/assets/reports/ROILPresentation%2011-26-13.pdf
Guys,
I admit that I was wrong about the large silver object in the photos. It is very well accounted for on page 17 of the filing.
I am going to do some rough calculations here and speculate that the shut-in tubing pressure of this well using static head of water = 11,391 ft depth ÷ 2.31 + 122 psi flowing pressure at surface now or 5053 psig after 14 day pressure build up.
This is good because API 10,000 and API 15000 PSI Wellhead, Valves and Equipment are readily available.
Additionally horizontal wells curve of decline in pressure and production is steep when first going online.
See fig. 5, 6, 7 & 8
http://pubs.usgs.gov/of/2013/1109/OF13-1109.pdf
I am attaching a link for those such as myself that are not familiar with all the oilfield lingo.
http://www.geomore.com/porosity-and-permeability-2/
PlatypusRx,
Again thanks for your DD.
The link you posted contains a lot of good information. First let's take a look at this company listed as an owner in the link
you posted.
International Petroleum Limited Liability Company
4834 Highland Drive, Ste. 200
Salt Lake city, Utah 84117
In my post #525 they are mentioned as applying for a permit to drill a well in the same area to be considered in the March 25 board meeting.
Another firm, International
Petroleum, LLC, has
requested a permit from the
OGM to drill another well
in the same area. That request
will be considered at
the OGM’s March 25 board
meeting.
Now let's take a look a the well analysis ( Exhibit "A" ).
For those unfamiliar with oil and gas measurement:
1 (one) barrel (bbl) of liquid = 42 gallons of liquid
BTU = British Thermal Unit
MBTU = Thousand British Thermal Unit
MMBTU = Million British Thermal Units
SCF = Standard Cubic Foot
MCF = Thousand Cubic Foot
MMCF = Million Cubic Foot
1 SCF = 1 MBTU ( normally used for gas calculations )
1 MCF = 1 MMBTU ( normally used for gas calculations )
Natural gas closed on the NYMEX today at $2.66 per MCF or MMBTU.
According to the well analysis we have high BTU gas ( between 1422 and 1447 BTU per SCF or between $3.78 and $3.85 MCF / MMBTU )
Whiting says the well is currently producing 400 - 500 MCF of gas.
We do not know the oil flow rate of the well but we can calculate the gas, water, other (liquid hydrocarbons) ratio of the well. Using a current flare rate of 450 MCFD.
According to the well analysis the well is producing 20.85 gallons of liquids per (1) MCF of gas and 1.75% of this is water.
450 x 20.85 = 9382.5 gals liquid divided by 42 = 233.39 bbl liquid per day
233.39 bbl times 98.25% = 229.31 bbl per day liquid hydrocarbons
233.39 bbl times 1.75 % = 4.08 bbl water per day
Sun7,
The $100 million is just a W.A.G. on my part. I would guess Whiting has already spent at least $20 million on this well. From what I see in the photos I am assuming that Whiting is planning on a "Facility" similar to some I have worked on for Apache in the Eagle Ford in South Texas. These facilities have multiple horizontal wells flowing to them. A 1200 BOE IP rate well down there is a big one. These wells only have around 200 ft of vert. pay and have to be hydraulicly stimulated (frac'd).
To the best of my knowledge this is a vertical well drilled through 1000 - 3000 ft of naturally fractured rock. The fractured rock in both cases needs "proppant" (special sand pumped into the fractured rock in the pay zone to promote the free flow of hydrocarbons).
There is a lot of things we don't know about what is going on here. For instance what is Utah's laws regarding well spacing?
We do know that Whiting is permitting a well 2-miles north of the Moroni well and another 2-miles East of that one. These are called step out wells. If these are successful there will be "infill" wells drilled between these and the Maroni well.
I do see STTX price going up a little on news of a successful well primarily because it will be on trend and closer to STTX 100% owned acreage.
As for as share price I see this as accumulation time. I own a couple of other stocks that are still drilling wells and claim that they are profitable at $20 oil. Their share prices are stagnant as well.
The blue tanks (water) and the tan tanks (dirty oil) are there for frac fluid recovery and are temporary. The fluids have to be hauled away by truck because they are full of chemicals from the drilling and cracking operations. I don't know if this oil is sellable or not but if it is it isn't worth much because of its dirty condition.
All the eguipment you see in the foreground is temporary. Look at the first photo on the extreme right side and behind the blue frac tanks and you will see another set of 6 tan tanks. These will be permanent and are the first sales oil tanks, there will be more added later.
In PlatypusRx first power point presentation he said there was a copy of Whitings "Facility Permit Application". This tell me that Whiting feels that the production from this well justifies an expenditure of near $100,000,000 give or take depending on size and guantities of equipment (single or multiple trains), pipelines to turn the oil and gas into a sellable product. If there is not a water injection well available to them (contract with the owner) they will have to drill their own. This is probably another $10,000,000 or so for the holding tanks, filtration equipment, high pressure injection pumps and the well.
The facility will likely be rectangular in shape and will extend from the near side of the well to beyond the permanent oil tanks (about 900 ft long by 300 ft wide).
The distance between the well and the permanent oil tanks will be filled with processing equipment (coolers if required, 3 phase separators (water, oil,gas), heater treater's, dehydration equipment, gas compressor, pipeline pumps if there is an oil pipeline, utility and instrument gas or air system, MCC building for electrical equipment, computer control center, etc.)
I believe the two photos were taken opposite of each other (about 180 degrees apart)
Another photo and newspaper article about our well.
http://news.sanpetemessenger.com/wp-content/uploads/sanpete-messenger-latest.pdf
PlatypusRx,
Thanks for your due diligence as well.
My opinion is the the large round object on the left side of photo is actually a shroud over the wellhead.
If you look at the shroud about 10 ft off the ground you will see multiple flowlines exiting the shroud (indicates high flowrate from the well.
If you look at the first photograph you will see that the snubbing unit is on the well and the shroud has been set to the side.
If you look at the second photograph you will see that the snubbing unit is gone and the shroud is in place over the well.
Must be a hell of a well because Whiting and partners are hiding everything.
Additionally if the object were a flare it looks to be too close to those vertical separators to meet state regulations and/or radiant heat requirements.
Oilcard;
Could you post a link to the tank photographs you mentioned.
I think I read that under Utah law Whiting (operator) could wait up until one year after completion to release results of a "tight hole".
Sounds like you have visited the wellsite, do you live in the area?
This article is from the March 5, 2015 edition of the "Sanpete Messenger". In the article Whiting says the Moroni well is nearing completion and they are getting ready to "frack".
That was 8 days ago. Maybe we will have news on well results soon.
MANTI—The Sanpete
County Commission has approved
spending $150,000 for
a new high tech aerial mapping
system designed to help locate,
measure and appraise property.
At a meeting in February, the
commission also approved an
easement so power lines could
be run as the next step before
the fracking begins at the new
oil well east of North Sanpete
Middle School in Moroni.
How will life change in
Sanpete County, if it all, when
low flying planes, or drones,
start taking photos from the sky
above, and hydraulic fracturing,
or fracking, starts breaking up
various layers of shale, or other
stone, underground?
The answers to both questions
are unclear. Assessor Ken
Bench expressed the hope that
pictrometry “will be a major
improvement over what we do
now” and explained how its use
would save his office the cost of
having to send so many staffer
members “into the field to take
so many measurements.”
To emphasize potential benefi
ts, Bench related a story from
a nearby county where the use of
pictometry brought in additional
property tax revenue because two
previously unseen “sheds” built
in a very distant, hard-to-reach
place turned out to be large and
valuable structures.
Bench then told the commissioners
that Sanpete County
Sheriff Brian Nielson had agreed
to contribute $10,000 out of his
department’s budget. The sheriff
confirmed this, but took care to
explain that he intended to use
pictrometry “only” for emergency
management purposes and
“not for us to be looking in or
spying on anyone.”
The flight of aerial mapping
is expected to start approximately
two months from now—before tree
leaves start obscuring the ground.
Next, the commission heard a
report from the sheriff that touched
on the state’s proposed expansion
of the 800 MHz public safety radio
system now used by police and
other first responders in Utah’s
most populous areas., and how a
statewide system is in process of
being put in place. In the sheriff’s
it will be a long time before the 800
MHz system becomes affordable
for less-populous counties and
cities that have a big investment
in the current VHF system.
Roy Moore, representing
Whiting Oil and Gas Company,
told the commissioners
that the new well, drilled near
Moroni, was “almost finished”
and that the “fracking” would
soon begin. As a prelude to that
process he sought and received
approval of an easement that
would enable Rocky Mountain
Power to install a short length
of overhead power line across
a little piece of county-owned
land before beginning
Boone Pickens guesses six more weeks until bottom then slow rise to $70+ by end of year. Since no one can predict exact dates I plan to start taking small bites as cash allows. I work in the oil business and this slowdown has cut my income in half.
To All,
Listened to Mr. Boone Pickens being interviewed about the price of oil on CNBC this afternoon. He discussed rig counts and the rate of decrease per week. Based on his numbers oil price should bottom out in about six weeks then creep up to $80-$90 bbl by end of year. This is based on no geo-political events.
Off Topic:
LNREF (.15) just announced that the last 3 wells they drilled in the Eagle Ford (Gonzales County Texas) had IP rates of over 1000 boepd each and that they are proceeding with drilling another three wells. They have a 50% interest in these wells.
AMAZ (.03) Pecos County Texas, 70,000 acres.
Just completed a conventional well 2000 ft deep, 120-130 boepd, 10 acre well spacing, well cost $400,000. Do not intend to stop drilling. Shale plays at deeper depths. 1-40 reverse split announced.
I have owned SDCJF for a long time also. Bought it at 12 cents.
What's up?
Wildcat Driller,
If someone wanted to how much money would it take and how would you go about buying an interest in Superior's wells that are being drilled?
No news, nothing to say, just waiting.
I am counting on oil going back up. Stocks such as "OEDV" and "STTX" there in Oklahoma and some others in the Permian Basin are on sale right now and I have been buying.
My intention is to keep buying as well. I really don't understand the lack of interest here. I am in some other pennies in the Permian Basin and the lack of interest is there too. I guess that is good tho, it will allow those of us that are interested to accumulate larger positions before the price goes up.
It looks like oil prices are going back up.
I have not found out much out production rates in Pecos County but I did see where Aegis Oil has discovered the Woodford Shale in Pecos County.
I bought 39,900 today at .025 and I will continue to buy when I can. Did some research this weekend and it looks like leases in Pecos County are running around $500 to $1000 per acre. Use $500 acre times the 70,000 acres and this gives us a value for the company of $35,000,000 or $1.75 per share based on the estimated 20,000,000 shares of the new company post split.
This estimate does not take into consideration Amazings existing production or leases in other counties nor Gold Crest's gold mine leases,etc. nor debt of either company.
maverick,
amazing/g.c. completed (see fri. g.c. 8K filing)
Do you guys know what's become of Geopressure?
News:
Form 8-K for GOLD CREST MINES INC
17-Oct-2014
Other Events
ITEM 8.01 OTHER
On October 14, 2014, we incorporated a wholly owned Nevada subsidiary corporation by the name of Amazing Energy Oil and Gas, Co. On October 15, 2014, we merged the foregoing wholly owned subsidiary corporation into Gold Crest Mines, Inc. and, pursuant to Nevada law, without the need of shareholder approval, changed our name to Amazing Energy Oil and Gas, Co.
ITEM 9.01 EXHIBITS
Exhibit No. Document Description
2.1 Articles of Merger
Add GCMN to Portfolio Set Alert Email to a Friend
Eagleford
There has to be a choke in the system to control the flow rate and pressure to downstream production equipment and the pipeline to shore.
The new A/S could be used for acquisitions.
We own app.10% of the production from this well. I think this well will come online near 10 million cu ft gas and 300 bbl condensate per day. Using today's commodity prices and producing for 300 days our 10% will put our first years revenue around $9,000,000. Without deducting anything for debt or other expenses it looks like our EPS is agoing to be about .04.
Using a PE of 5 this would make us worth about .20 per share on the "I-1" well alone.
Silvermere is saying that it is going to be a 6" departing pipeline. I think I remember WGAS saying it was going to be 10". Anyone know for sure?
News and photos on WGAS website----the deck was being set tonight.
Gentlemen,
Let's discuss the term "full production".
The L-1 platform is a "test facility" for multiple wells.
The platform only has one well to produce at this time (the L-1).
There will be well bays on the platform for the drilling of future wells. There will be a multi well manifold with a "production header" directing flow straight to the 10" departing pipeline and a "test header" directing flow to a 3-phase test separator which meters the oil, water and gas from the particular well being tested. After metering the oil, water and gas is recombined and sent to to the 10" departing pipeline whhich is sized to handle production from multiple wells.
My point is that this platform will not reach "full production" until the flow through the 10" departing pipeline has been maxed out.
Geo,
Getting ready for an offshore project?