Ultra has three sections at Jonah -- Sec.21, Sec.23, and Sec.24, each of which had spacing for eight wells prior to the downsizing to 40-arces, after which each had spacing for sixteen wells. There was also one location in Section 14. Prior to this summer here is the list of wells drilled and Cummulative Production from beginning production date(in parentheses) through April, 2000:
Section 14 -- 13-14 CP 304,438 Mcf (Dec 1998)
Section 21 -- 3-21 CONFIDENTIAL (no data available)
7-21 CP 172,398 Mcf (July 1998)
9-21 CP 1,226,855 Mcf (January 1999)
11-21 ND = Never Drilled, but permitted
Section 23 -- 1-23 CP 1,607,404 Mcf (October 1998)
3-23 CP 1,868,835 Mcf (September 1998)
5-23 CP 1,213,202 Mcf (December 1997)
7-23 CP 2,391,468 Mcf (November 1997)
9-23 CP 1,239,474 Mcf (October 1998)
11-23 CP 2,184,333 Mcf (September 1998)
13-23 CP 3,591,102 Mcf (February l997)
15-23 CP 2,290,862 Mcf (August 1997)
Section 24 -- 1-24 CP 679,939 Mcf (February 1999)
3-24 CP 789,365 Mcf (November 1998)
5-24 CP 826,226 Mcf (January 1998)
7-24 CP 843,940 Mcf (February 1998)
9-24 CP 592,999 Mcf (September 1998)
11-24 CP 958,851 Mcf (December 1998)
13-24 CP 1,760,108 Mcf (October 1997)
15-24 CP 1,615,946 Mcf (December 1997)
My thoughts on the above: Clearly Section 23 shows the best flows of all the sections and is probably why most of this summer's wells began with locations in Section 23. My figures show that if the new wells model, say, 1-23, or 7-23 or 13-23, at $3.90 gas (the number used by Ultra in estimating its reserves values) they will payout in LESS than six months, perhaps as few as four. That would be fantastic because there would still be several months of high flow rates/high profits before the steep decline rates kick in. . . Hopefully some of you out there can add to this.
Gerry Atwater |
