This is a post by New Trader_1984 on HC...
The flow rates aernt much so far but the well is atleast flowing at different intervals which is better than having no flow out of all zones. If they can get maybe 0.5-1mmcf on the next 2-5 intervals depending on how many they plan to test compared to what they have told us so far it would make the well productive for the company.
Looking at the Lisbon field they have a lot of wells many producing and many were plugged and abandoned. They have a total of 225 feet of net gas pay which has produced over 1tcf of gas plus oil. Now 1 tcf of gas from 225 feet of net pay is about 4.4bcf per foot of gas pay.
The flow rates at Lisbon are different anywhere from 0.1mmcf per day to several mmcf per day. If gdn can get several mmcf per day from the well it would be a good start also if they say its commercial they would have to be confident of a minimum of 50bcf from the field.
GDN picked this spot to test as many different formations as possible, which it did, they found 60 feet of gas in Leadville which may have been a good producer if water wasn’t there. It was a deeper well then expected considering many other wells in the same area reach Leadville around 10-12000 feet instead of 15000 maybe in future wells they wont need to go so deep to reach Leadville. The information the company received from drilling this wildcat well is able to help better select future well places to best target certain formations whether they are ismay and desert creek or Leadville.
If this well can be commercial then that’s better than most companies can get on their first well. I realise it cost a lot but if they can recover the 9 million Australian from whetherford then that reduces the costs to about 11 million for the well, yes more expensive then meant to be but a large number of wells always go over budget.
Many oil and gas companies they have projects in many countries or different states of a country? GDN has 10 000Ha or 25000+ acres of land in the paradox basin utah. This first structure covers 2000Ha of that field. That leaves 8000Ha of land to drill which could contain 2-4 more structures in similar size or bigger. We don’t know how big this field is currently and flow results aernt giving us the best results but that can change on future wells if in better positions to reach formations. Also horizontal drilling has been used in utah and can help produce a lot more gas then vertical wells which could help the cane creek formations where it was too tight for successful flow rates. Having so much land in one area saves a lot of travelling and can also mean they are able to build reputations with the drillers to become very successful. The litigation may hurt them possibly if sue12 is right that if you upset one group you wont get any help with drilling, but you cant just let companies walk all over you either and let them take your money when you have proof that they received a faulty casing.
Earlier I mentioned the Lisbon field has produced over 1TCF of gas with only 225 feet of net pay. If we now look at gdn’s well at the 2 intervals that has flowed successfully there is a total of 73 feet of gas pay even though low flow results in better positions for those formations flow rates could increase, the main thing is the gas is flowing. If we use 1bcf per foot of net pay then that means gdn currently has 73bcf of gas. If used 2bcf that’s 146bcf, If they only have half of the two intervals as net gas pay that is still 37-73bcf of gas. If you look at the original intervals and compare to the two that were flowed they both increased in size not sure why this happened or what it means but I’m assuming it means more net gas pay for each interval.
They plan to test 2 more intervals we have been told about for a total of 32 feet more of possible gas pay which if going by last 2 intervals could be increased in size still. They then have 3 more intervals which were mentioned to be likely productive zones back in October last year. If those 3 intervals were added it would add another 85 feet of possible gas pay, currently those 3 intervals no one is aware if they will be tested or not.
So if we can add the 32 feet as likely to flow in this well on top of the 73 feet that already has flow rates even though small its still productive, that gives a total of 105 feet of gas pay. If we only have 1bcf per foot that would then mean 105bcf of gas and using 2bcf per foot is 210bcf of gas for the field.
Im only using the number of bcf per foot and only using half of what is produced in Lisbon and considering almost same size in structure it should be closer to 3bcf per foot I would have thought.
I realise if there was a 100bcf in the field with current flow rates it would take a very long time to produce and the daily earnings wouldn’t be much but since success on a first well doesn’t happen often a commercial well for gdn would be a good start. Future wells can increase flow rates by targeting the formations in better places.
Something that has been mentioned a lot is the types of gas that is being produced, I don’t know why people are bringing it up when they don’t ask the same questions on other oil and gas companies that is producing commercial amounts of gas. Why ask about gdns types of gas when wont do the same for other companies?
This isn’t ramping either, I know the flow rates are small but other companies can produce wells at similar flow rates so it suggests its still productive just needs to increase to be worth producing into the pipeline. The bcf estimates gives me an idea of likely size of the field based on successful flow rates so far and just thought to share it.