RE:RE:YGR new landAnother reason Peyto and especially Petrus are drilling so hard. Alot of cardium land would only have 5 years before it expires...if not held by production. Some duvernay is like 10 years.
Petrus prob wants to get some wells in on land expiring in 2023. The sept well for PEtrus was expiring soon like in 2023.
kavern23 wrote: Another observation I wasnt smart enough to notice before is YGR obviously got some of that new land in what is called Phoenix Field T39-R10 from competitors.
It looks like YGR got half that land from Orlens Energy and Orlens didnt have much choice.
What I failed to realize is alot of the cardium land that is undeveloped is facing government expiry limits in 2023 and 2024. IE if you don't drill it by that certain date it goes back to the government.
Orlens actually paid fairly big bonus for that land, more then YGR gave them but orlens was going to lose it by Aug 2023 and some in 2024 if they didnt drill. Orlens becuase of covid prob has more land then they can drill on. Selling to YGR for some kind of cash was more appealing then zero.
Prob good land hunting season right now. Looks like a company called kaiser small as f*ck company lost quite a few sections that expired in 2022 and that could be posted again for bid.
I didnt see many of the YGR buys in gov sales but orlens they got from. Finally solved that puzzle.
kavern23 wrote: It will be interesting to see if YGR will continue to implement best practices from the Permain basin. WCP and YGR seem to be the masters at making as many wells per pad as possible and that best practice came from Permain.
The new thing in Permain in 2021 was 10-15% of wells being 3 mile laterals instead of more common and standard 2. Most companies have expaneed use of 3 mile wells even further....one disadvantage of it is you need to own a big cunky land position.
YGR new land position would definitely be suited for even longer 3 miles wells. I wonder if YGR tries one in 2023...even Cheddarville they could. Don't need many pads if you start doing 3 mile wells. Prob can get a 15-20% cost savings and that is material on 30 wells. 20-3mile wells is obviosuly equal to 30-2mile ones.
Ironically the first 3 mile cardium well I have seen even attempted was by Whtecap and it borders to south east of YGR Cheddarville sign.
Very good sign for YGR as well if this would carry over to YGR lands as well.
WCP well produced near 700 barrels of oil per day for ten days and still cleaning up. That extra mile of well bore is probably giving it 700 instead of 500 of oil.
So good sign this technology works, companies are able to frac that long and stay in zone.
Cheddarvill looks perfect for 3 mile wells east to west. Good way to get production bump and it is cheaper.