Anyone ever invest in a new oil well?

[jooger17]

Depends on what county they are drilling in. The EF varies in depth from surface from area to area. I would think 20ish days would be a good guess.

Probably a little more on a dual lateral. Probably looking at 30ish days for the drilling. Once the rig leaves location I have absolutely no idea how long that process takes. I had an engineer tell me a few years ago, that the national average from spud to turning profit was 90 days, but that's absolutely hear say.

[kyle1974]

Probably a little more on a dual lateral. Probably looking at 30ish days for the drilling. Once the rig leaves location I have absolutely no idea how long that process takes. I had an engineer tell me a few years ago, that the national average from spud to turning profit was 90 days, but that's absolutely hear say.

it just depends where they are...

I haven't heard of any dual laterals in the eagle ford, that sounds more like an austin chalk play. open hole/packer type production. 3 million is probably doable, if it's open hole, and they're not running a production string.

[jooger17]

Jeff, how long ago and where was this investment?
My understanding is the investment companies usually have a working interest and reinvest in each well. Take a look at what they are putting up and what they are reinvesting. I've heard figures that it does take a couple of million to drill, about double that to FRAC and another MIL to put into production. Technology's are advancing so quickly the cost to drill and produce is being reduced constantly. my knowledge the Eagleford has only had 1 dry hole, better investment than the stock market, that's not bad odds when you think about it... These companies get outside investers in order to complete many wells
one of the big things to consider is had the activity around this area produced good wells. The technology today is way beyond years past and the operating companies are not in this business to make dry holes. Having a lawyer check over paper work protects the written investment not the probability to produce.

tending the fire,
Bob G.

Could be 1 in the Buda and another leg in the Chalk. In North Dakota we'd drill dual lats. One would be a Threw Forks and one would be a Bakken

[bphillips]

it just depends where they are...

I haven't heard of any dual laterals in the eagle ford, that sounds more like an austin chalk play. open hole/packer type production. 3 million is probably doable, if it's open hole, and they're not running a production string.

He said Buda but chalk can be done as well. I haven't heard of dual Eagleford wells either and I driller them for quite a while. We did a few 4 lateral wells down around Pearsall that I believe were all chalk and they were flowing oil while we were drilling.

The thing down there is yea 3mil is possible with the right men on locations but you can run into really expensive problems in some of those formations. Getting stuck is not rare and if you leave a string in the hole the lost directional tools alone will raise that another million not including any other rates to run and finish the wells.

[kyle1974]

send me the abstract or approximate lat long and I can show you what's in the area.

[tex4k]

Another gotcha, I used take care of wells that had multiple investors, some were single well investors, some multiple well, and some were entire unit. The bookkeeping glitches had auditors, engineers, and legal eagles looking over our shoulder constantly. There were unhappy investors out the wazoo, most were relieved when the field was sold.

[DosToros]

Make sure u make a seperate LLC for this investment. That way if the deal crashes and burns you are not personally connected. I speak from experience. I invested in a buda horizontal non frac, south on San Antonio last year... Bankrupt. Horizontal got to deep and water got into the well bad. The shows were great and there was oil all around the lease. But it just turned into the blame game when the deal ran out of money.


I invested via an llc.

[haas0311]

If you need some geological input, I might know a little bit..

[glen]

Have a relative that compares it to playing craps. He can afford to loose. Watched him drop triple figures in Vegas. I was shaking my head when we were eating and he started talking about winning and loosing $$$ on wells. He said he invests in them for entertainment just like throwing dice. Wish I had the $$$ to throw at a few wells

[Bob G]

Lots of advice here I'm really curious to the answer to the real question is... who on tbh has actually made the investment?

tending the fire,
Bob G.

[curtintex]

Lots of advice here I'm really curious to the answer to the real question is... who on tbh has actually made the investment?

tending the fire,
Bob G.

I have. Several years ago in Logan County, Oklahoma. It was well #29 in sequence and 27 of the first 28 were doing pretty well with oil. Well #29 did not do well at all. A few months later, the well was reconfigured to draw out the gas that was there and it improved. I've been getting a small check ever month since. It'll take me too long to recoup my money to consider it a good investment. If NG ever goes back up, it'll be much better, but to be honest I consider it a lesson learned....an expensive lesson.

[bphillips]

Lots of advice here I'm really curious to the answer to the real question is... who on tbh has actually made the investment?

tending the fire,
Bob G.

Have here but I just don't have the cash to make it worth it. You've got to be able to be able to get up from a bad one and keep goin if you're going to make anything

[glen]

Bob. I don't have enough $$$ to sit at a crap table and loose triple digits yet so I have not. I do gamble just don't have enough to buy in using chips with the gold lip yet

[Big pig]

Lots of advice here I'm really curious to the answer to the real question is... who on tbh has actually made the investment?

tending the fire,
Bob G.

Yep. After 35 years in the business as a Landman, it is still a gamble. But sometimes you bet big, win big. Don't invest anything you can't afford to lose. But I love my "free" small overriding royalty interests.

BP

[dfkoon]

3 times. 1st hit last 2 didn't. Don't do it would be my recommendation unless you just have money to burn. They always make it sound like a sure thing. Of course I didn't listen to my uncle when he gave me the same advice.