Does anyone know it there is anything going on at the Finkhouse Unit? December production was 1 barrel.

Thanks

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I don't know any details as to why December production was essentially nothing, but odds are that there is a mechanical failure (pumping / artificial lift issue) that has the well "off line" waiting on repairs.

Considering the low daily rate prior to December, I would assume that the priority of getting this well repaired and back on line is low on the list. But I would estimate that work will be done within 2-3 months to get the well back on line.

Any observations from those in the field may shed some more light on this issue.

The only input, relevant or not, that I have is that the Finkhouse lateral runs NE to SW, which is more-or-less perpendicular to the usual NW-SE/SE-NW lateral direction in the Eagle Ford.  I am given to believe that this would make fracking less efficacious, what with the prevailing stresses in the shale, and therefore a large contributing factor to low overall production.  I believe there is a large fault in the area that runs NE to SW, so the direction of the lateral was likely set to avoid the fault. 

I'm a petroleum engineer practicing without a license, but I've always regarded the Finkhouse well as something of an experiment.

Good points by James - and an experiment that EOG has not followed up on with similar orientations in the trend. During the blow and go times of the early Eagle Ford drilling, EOG probably looked at this abnormal lateral orientation as an option to "drill and hold / HBP" a strip of acreage that would have been lost / expired otherwise. Also figure that possible fault presence contributed the decision to drill this well as planned.

There will not be a second well on this unit IMO. I am betting that EOG will have a selective divestment of EF wells in the near term (next 1-2 years) - this well will be part of that sales package.

This well has a classic unconventional reservoir production decline profile (see attached) - presently making about 23 BO & 37 MCF per day thru last full production month (November 2017). This problem with this well (and the issue that James has pointed out) is the orientation of the lateral caused a VERY ineffective frac to be put on this lateral. And once frac'd, this well cannot reasonably be "re-frac'd" to economically improve production.

It is just pure physics tied to stress directions and induced energy (frac).

I have also attached an EUR projection for this well (from DrillingInfo.com site). Assuming that this well is put back on line as the same rate as noted in November 2017, it theoretically could produced another 142,000 BO - over the next 50 years.

Or an average of about 8 BO per day over that period.

And this only assumes that mechanically this well can be kept producing that long. This is one of the reasons why I am betting that EOG will divest this well and let smaller, low cost operators work it to optimize production and keep it going.

Attachments:

Thanks for your information Mark and James.  I guess I need to start buying Lotto tickets.

Rick

Sorry to be the bearer of negative news, but something is better than nothing.

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