Monday, May 16, 2011

GMX Oil Reentry Candidates

GMX stated in its earnings release earlier this month that it has identified "some" earlier completions as reentry candidates to look for oil in the Smackover and/or Norphlet formations below the Haynesville.  We previously guessed at one, the Bosh #2A, which was permitted officially on Thursday.  On Friday, GMX applied for the Sanders Moore #5, a vertical recompletion to 14,500' in Harrison Co., which was originally completed in November 2006 as a Cotton Valley well.  Approval is pending.

I've updated the Texas oil list with this information and the update on Bosh #2A (the application was changed from 12,500' to 14,400' - hmm...).

13 comments:

Anonymous said...

Hmmmm... is right.

Anonymous said...

Sanders-Moore #5 produced 12 BBL of condensate per MMMCF on the average since it was put into production. in the first 7 months it produce 250 BBL of condensate per month irregardless of the amount of gas flow. After 7 months the condensate dropped off to 30 - 60 for the next 3 years and was recently at 10 BBL per month.

After reviewing the data it appears to me that the condensate versus flow seems to be independent and may just be the amount leaking upwards to the well bore.

http://webapps.rrc.state.tx.us/PDQ/changePageViewAction.do?pager.offset=0

Anonymous said...

Any thoughts on why the MERCER 15H is a 16,500 ft well instead of the typical 13,000 ft well. Makes me think the well will be 3000 feet deeper so that perhaps it will be closer to the oil??

What is up with the Jo Ann Scott. it is only 6802 deep. And a new vertical well at that. Why not 14,500 ft.

Anonymous said...

That Jo Ann Scott well appears to be right next to the Bosch Well

Anonymous said...

Jo Ann Scott 8A is permitted as an OIL only well.

Robert Hutchinson said...

Regarding the Mercer - not quite sure why it is permitted for 16,500'. That would be quite a lateral if they are targeting Cotton Valley. No doubt they are going to peek deeper, though.

Robert Hutchinson said...

Regarding Jo Ann Scott - I noted a new Sterrett well (#24) by Valence that is only permitted to 7,000'. Like the Jo Ann Scott and its proximity to Bosh #2A, the shallower Sterrett is located in the concentration of suspicious Sterrett wells in Panola Co. Very interesting.

http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPublicQuery=Y&name=STERRETT&univDocNo=486553938

Anonymous said...

Valence is now up to 7 Sterrett well permits since March 2nd. Only 2 months! Prior to March their last well permit for this lease was March 2007.

7 out of 15 permits applied for in 2011. Seems this may be their only Panola county lease and they have a total of 27 permits their since 2002. These wells seem to produce 20BBls of NGL per MMCF which helps with there economics. Straight verical wells also helps. Well #4 only had a 50% decline in production volumes since 2002. Not sure why the decline isn't bigger.

http://webapps.rrc.state.tx.us/PDQ/changePageViewAction.do?pagesize=500

Jeff said...

"What is up with the Jo Ann Scott. it is only 6802 deep. And a new vertical well at that. Why not 14,500 ft." Not really sure why you consider these sternett wells to be suspicious as half of them are already producing out of the pettit. i would drill an oil well with proven reserves over a much more expensive unproven oil well anyway day.

Anonymous said...

Jeff I don't disagree with you. I am just surprised that GMX is starting to drill "shallow" wells targeting oil.

Management has said nothing of this on their conference calls. I figure they might be rethinking their drilling plans for 2011. Oil and NGL is key to profitability and the Haynesville shale has neither.

If the find oil by the salt weld or a decent IP and NGL content in Cotton Valley I think new targets will be set immediately.

Robert Hutchinson said...

Jeff: The Sterrett wells are on the list because they are deep verticals clustered together. There may be nothing to it, but given that Valence is involved in the Brewster well that many believe is an oil producer and the burst of activity, I felt they should be included on the "watch list." They may not amount to anything (from a deep oil perspective), but they bear watching.

Anonymous said...

More GMXR vertical permits applied for:

Today: BENNETT #2 Depth 14500ft

Earlier this week: BELL OIL WELL #9 Depth 7000 ft

Anonymous said...

http://www.globenewswire.com/newsroom/news.html?d=222957


Pegasi makes oil announcement concerning Cass and Marion Counties.