Posted On: 05/13/2014 4:00:11 PM
Post# of 39368
No doubt I would love for Treaty to get a lease with a possible 1000 bopd well to be drilled on it. Here are a few things to remember about a lease like those. If it was easy to acquire every oil company would have one. Those leases are VERY expensive. When you talk about hitting 1000 bopd wells (in Texas)most of the time there is a completion in a shale formation. Not only is the lease expensive we are talking about drilling 10,000+ feet. VERY difficult completion. I understand what you are saying and one day I hope Treaty has the $$ to go after one of these. Right now Treaty needs some good 15 to 50 bopd wells and then some 50 to 100 bopd wells then some 100 to 300 bopd wells. etc. etc. The thing about going after a well on a lease like that is not the cost of drilling and completing a successful 1000bopd oil well because it would pay for itself. It is spending the same $10 million+ on a well that does nothing because you missed by 100' or you hit the zone and the permeability is low and the well pulls down in pressure so fast until it is shut in and it rises. You can't frac it anymore because of the clays. It flows at 1000 bopd for 1 to 3 days and sands up to the tree. These are game enders for Treaty at this point and time. If Treaty fails on a 4000' oil well it hurts but we can try again. If we fail on a 10,000' multi lateral completion and frac job, we are done!! IMO
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