2010 exit rate 2732 boepd.
EFS - 601 boepd
Marchellus/Triad - 1700 boepd
Williston - 384 boepd
Louisianna - 55 boepd
Note: Louisianna production not flat as previously described. Eagleford 4 wells producing grand total of 601 boepd - thats's 150 boepd avg per well- could this be right? Marcellus Triad production has not changed since 4rd qtr presentation numbers despite 2 new marcellus wells on production - I guess old triad wells are declining more then I thought they would.
Gary best give a great operational update here or this thing is gonna get creamed by the market.
>>>>Eagleford 4 wells producing grand total of 601 boepd - thats's 150 boepd avg per well- could this be right?<<<<<<
Are you using 4 "gross" number of wells, or should you be using around 3 "net" number of wells? The two Gonzo wells are 50 percent owned, and the first Gonzo well only had 9 of 11 frac's done properly. The two Atascosa wells are 96 percent owned, and these two appears to be low producers. If a "net" of three wells, than the average is around 200.
The two Atascosa wells appear to be low producers of around 160 with more water. The second Gonzo well, the Southern Hunter #1-H, appears to be a high producer.
IMO, these companies should apply to the US Dept of Energy to get grants for research on developing improvements on the costs and production of such shale wells.
"Press Release dated November 10, 2010.
Eagle Ford Shale Drilling Update
Magnum Hunter's first well drilled in the Eagle Ford Shale oil window of Gonzales County, Texas was the Gonzo Hunter #1-H.... the well had an initial production rate ("IP") of 605 barrels of oil equivalent per day ("Boepd") and 412 Bbls per day of water on October 11, 2010. Currently, the Gonzo Hunter #1-H is flowing to production without artificial lift at approximately 197 Boe per day and 43 Bbls per day of water..... currently estimates the economic ultimate recovery ("EUR") for the Gonzo Hunter #1-H to be 362,000 Boe. Magnum Hunter is the operator of the well and owns a 50% working interest.
The Gonzo Hunter North #1-H was spud on December 31, 2010 ......
The Company's Southern Hunter #1-H is located approximately 7 miles southwest of the Gonzo Hunter #1-H. The well was spud on October 14, 2010 and was drilled 11,779 vertical feet plus 4,460 horizontal feet. After a 14 stage frac job, flowback commenced on January 7, 2011. Currently, the Southern Hunter #1-H is flowing to production at approximately 1,335 Boe per day and 212 Bbls per day of water on a 13/64 inch choke with flowing tubing pressure of 4,300 PSI. The currently estimated gas-to-oil ratio ("GOR") is below 1,000 and the crude oil flowing to production has an API gravity of approximately 43 degrees. Based on current production characteristics, the Company believes the Southern Hunter #1-H's EUR to the 100% working interest is estimated to be in the 500,000 Boe range. Magnum Hunter is the operator of the well and owns a 50% working interest.
On November 2, 2010, the Cinco Ranch #2-H well was spud ....
The Cinco Ranch #1-H was spud .....
The Company's first well in Atascosa County within the Eagle Ford Shale is the Lagunillas Camp #1-H...... Currently, the Lagunillas Camp #1-H is flowing to production with no artificial lift at approximately 159 Boe and 368 Bbls of water per day...... Magnum Hunter is the operator of the Lagunillas Camp #1-H well and owns a 96.875% working interest.
Magnum Hunter's second well in Atascosa County within the Eagle Ford Shale is the Lagunillas Camp #2-H. ......The Lagunillas Camp #2 well is currently producing approximately 163 Boepd and 245 Bbls per day of water. ....... The Company is the operator of the Lagunillas Camp #2-H well and owns a 96.875% working interest."
I am looking at the March 2010 presentation. It states that they have the first well drilled, it was producing 80-90 boepd (gross). MHR's fractional interest was 62%, giving them 55.8 boepd net to MHR. That is pretty close to the 55 boepd you listed as the year end exit rate.
With the two deals pending I am having difficulty finding what would be a reasonabe "guesstimate" on what the production would be for MHR after the deals close as opposed to now. Also what percentage would be oil vs gas both before and after?
I would appreciate any info you could add.
Couple of observations; I think only 1 of the Marcellus wells was producing and that was late December when it came online. The second well I think did not get completed and turned onto sales until January.
As for the EFS, I expect that you are deweighting the fact that some of those wells are not 100% owned by MHR, right?
East Chalkley - It is on the auction block. If I remember, we only own about half, I think the 55 boepd is about right.
Anything else whiner?
Baffled, 1st question is what is your source of this information since you clearly don't know what is going on and are clearly in error?
At YE2010 there were (2) EF wells on production (1) Marcellus well from MHR's pre-existing acreage. YE2010 exit rate would also include any producing wells in the Wetzel county properties of PostRock that closed 12/31/10.
Those wells were:
EagleFord - Gonzo Hunter #1-H w/ 50% W.I.
EagleFord - Lagunillas Camp #2-H w/ 100% W.I.
Marcellus - Weese Hunter #1001 w/ 100% W.I. & 84.3% NRI
I direct you to the 1/18/11 reserve update, under management comments -
"However, with only two PUD's booked in the Marcellus and four PUD's booked in the Eagle Ford at year-end, we have plenty of room for reserve growth in years to come due to our significant land positions." (2)PUD's for each PDP well above.
I would be pleasantly surprised if Magnum's EF net production was 600 boe/d based on these 1.5 net wells, I just don't see that as anywhere near a possibility. So I again ask you what is your source as these numbers were in no presentation or press-release? Did you just pull them out of your A$$?
Other wells that came online after 12/31/2010:
Eagleford - Lagunillas Camp #1-H - 1/2/2011
Eagleford - Southern Hunter #1-H - 1/7/2011
Marcellus - Weese Hunter #1003 - in the last week of Jan
Marcellus - Wetzel #1-PostRock - online mid Jan
Other wells that should be online this month:
Eagleford - Cinco Ranch #1-H - w/o frac 2/13/11
Eagleford - Cinco Ranch #2-H - w/o frac 2/20/11
Eagleford - Gonzo Hunter North #1-H
Marcellus - Weese Hunter #1002 - should be online now?
Marcellus - Ohio Monroe County
Marcellus - Wetzel #2-PostRock
Other wells have been spudded or been permitted but not enough information at this time, also from PostRock CC stated 4 wells in Jan/Feb in Wetzel county (2 listed above) & 2 wells under J.V. in Lewis county.
Those trying to get a handle on combined production after acquisitions should read presentation:
"Current daily production in excess of 6,000 boe/d (approximately 55% oil / liquids)"