Many permit applications in SW Wilson County by Trinity Operating LLC.
Anybody have any reports on Lease Bonuses that are being paid in that area, a bit updip NW from the Karnes-Wilson line? Thanks.
Companies are getting a bit gutsier and are looking at D&C economics using higher O&G prices. Combination of effective drilling, staying in target zone and Gen 5+ fracs should get good payout timing and some longer-term decent cash flow in areas of what was considered "marginal" or second-rate Eagle Ford.
One issue of concern I would have is the presence of H2S in some of these updip areas - this can severely hinder operations and activities.
Yessir, they E&P companies do seem to be a bit gutsier. Thanks for reply.
Thanks for info on H2S. In my naivete, I would have guessed that in the "overburden temp and pressure inverted refinery stack" (my made-up image) H2S as a gas would be cooked out less, like nat gas, in the lower temp i.e., updip areas. Maybe different dinosaurs and forestation up dip Ha ha.
H2S presence is difficult to predict, let alone to understand the dynamics of where and when it occurs (at least from my perspective). It is definitely tied to source rock characteristics and the original depositional "issues" with any source rock (e.g., Eagle Ford). And things can change quickly as to this issue - one can go from zero H2S to significant concentrations over very short distances.
One of the good things with the Tx RRC is that any H2S presence is recorded online via H-9 reports that detail the events.
Oil field operations can address and handle H2S presence - but it can sometimes be difficult. Gas pipelines have strict limits as to inert concentration content (e.g., H2S) that can be put into their lines. Volumes of lower H2S can be blended with non H2S gas to bring overall content down to acceptable guidelines. If this is not possible, then the H2S bearing gas needs to go to a processing plant that can handle that product - and there are not a lot of these around.
One could flare H2S - but aside from the environmental impact and smell, present flaring laws may cause wells to be shut in if they have H2S gas that cannot be properly handled.
I personally have royalty interests in some EOG operating Eagle Ford wells in Gonzales County that are cut back as to production rates due to H2S conditions - and the lack of the ability to handle maximum production rates of this product.