Quote:
Originally Posted by Eric 951
A few indicators to look at regarding the possible investment.
|
1. Where is the well--state and oil field? How deep is the well?
----Texas,
GE partners with Vess Oil to acquire East Texas oil and gas reserves - PennEnergy
I suspect it's one of the ones mentioned below that's been worked since 2011.
Quote:
|
The Eaglebine area has been drilled vertically for years as the play is home to a number of other pay zones, such as the Austin Chalk, Buda Lime, Bossier Sands, Deep Bossier, Edwards, Freestone Trend, Georgetown, Glen Rose and Wilcox formations. Drilling activity in this region had been fairly active since at least 2011
|
2. Who operates the well and who is the current buyer of the oil? Is the current buyer locked in to a long-term purchase contract?
---- There are 4 places that are paying royalties, currently
3. Are you responsible and for what percentage of maintenance/repair/operating expenses on the well?
---- Don't seem to be.
4. If yes to above, what are the current operating annual operating costs.
---- nada
5. Is the investment just for the single well, or a portion of the overall play(total acreage where the well is currently) are you buying into any type of future consideration if other wells are developed in that play?
---- was a partial owner of some acreage. Sold the property, but retained the bulk of the mineral rights
6. Is well pumping at current maximum capacity(doubtful), what was the peak production rate, what is average monthly production rate?
---- No idea
7. What is the water cut of the current BO--are you responsible for any of the processing fees for the oil to be market ready? Are you responsible for water disposal after separation(Usually into an injection well which will have a per barrel expense.)?
---- still no idea
8. What are similar wells producing in the area and expected reserves in that particular field where well is located?
---- I got lots of no idea
9. Is it a traditional vertical shaft well or is it a fracked well with multiple horizontals?
---- I think it's traditional, but I could totally be talking out of my butt.
10. How does the lease read where the well currently sits? Does the land owner get a percentage? how much?
---- tiny, like 1 or 2%
Wells can be a gamble--it can produce for less than a year, 10-15 years, or 50+ years--usually at a diminished return over the life of the well.
This would essentially double the current portion.