Great that someone has posted a map. Clearly demonstrates how you can do a good reserves evaluation without seismic - because the wells are only 10's to 100's of ft apart. For anyone who does not know the various well spot symbols there is a legend on the Texas RRC site which shows you which are abandoned, currently producing, water, cancelled, planned etc.
A bit more useful historical context, below is a graph showing the historical production from the fields. The subset is the contribution from wells currently on MAD's leases. As you can see MAD's wells have been responsible for a relatively small amount of the production although the map demonstrates this is not due to a lack of wells!
The graph shows a typical profile of ramp up to a peak production (5000bbl/d in 1953), achieved early on in the field life as this is when pressure is high, formation integrity best and original oil distribution means there is not too much water production. You then have decline as wells become subeconomic and produce water. A total of 30.1 MMbbl has been produced from these fields(of which 2.9 MMbbl has come from MAD's present leases). MAD's reserves mean they are saying that despite on 30.1MMbbl being recovered since ~1940 over the entire fields their subset of leases will produce 100MMbbl + in the future at rates higher than were ever achieved in the past!
My expectation is that if they continue to drill wells production will continue to bounce around the current levels where it has for the past 30+ years.
Happy to answer any legitimate questions and post more data if people request it.
Short
FDM Price at posting:
60.0¢ Sentiment: Sell Disclosure: Not Held
