This is your area and you know your way around the RRC website far better than me. However I just had a poke around because as you pointed out the number of wells on this lease (State Tract 118) in this reservoir is shown to be 6, I’d say this includes the wells we purchased from ERG (wells 5 and 182)
I’m not sure if you’ve looked up Energy Reserves Group L.L.C? I’m sure you have. For those who haven’t though the historic production data for ERG shows two producing wells in ST-118, so with those added to the two we know Linc Gulf Coast Petroleum have recently completed we really only need to explain two – which, depending on how literally you want to take the conversation I had with the Company last week may be explained by the word “several”. But who knows.
As for the restrictions on concurrently producing from these wells all is not quite what it seems. It made no sense to me why the Company would drill wells they can't use, so I had a good look.
The restrictions are ‘only’ for the CEDAR POINT FRIO STRAY UPPER and FRIO MIDDLE reservoirs.
Wells 185, 186, and 187 all have access to The UPPER reservoir while-
Well 187 ONLY has access to the UPPER reservoir.
Well 188 ONLY has access to the MIDDLE reservoir
Well 189 ONLY has access to the MIOCENE –A- reservoir, and so has no restrictions.
Well 190 cannot produce from the same reservoirs as wells 185, 186 or 187 – which is a non-issue because 190 ONLY has a restriction on the MIOCENE B-1 reservoir and none of the others share it!
Well 192 is in the DEEP FRIO and has no restrictions.
So the long and short of it is that if well 185 is producing from the upper Frio then 186 will need to produce from the FRIO 1 or the Middle Frio. If 188 is producing from the Middle Frio then 186 MUST produce from the Deep Frio or the Frio 1 unless 185 is producing from Upper Frio – in which case 185 will need to be shut down temporarily.
Well 189, 190 and 192 can do as they please for the moment but may have restrictions imposed by any future W-1’s.
Clear as day.
LNC Price at posting:
$1.50 Sentiment: None Disclosure: Held
