Monday, April 2, 2012

Devon Continues Delay On Release of Beech Grove Production

One of the important variables to monitor regarding the TMS play is the monthly production rate decline.  As of today, Devon still has not released the January production volumes on SONRIS for the Beech Grove 68H-1.  All of the TMS producers had their's posted several weeks ago.  It will be interesting to see the current decline rate.

4 comments:

  1. The State should require the monthly production numbers to be reported within 24 hours of the end of the month on every well, along with the number of days the well flowed during the month. Why can O&G producers delay reporting until they "feel like it"?

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    1. Its not always quite that simple to get all of the numbers accurately accounted for and reviewed in that short period of time. However, most agencies give the O&G company leeway in reporting exploratory wells. This is generally done so not to give away crucial information to direct leasing competitors right away.

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    2. Who should our State be looking out for? - IMO the private property owners and the citizens and taxpayers of our State who are the owners of the State owned leaseable property. Should the State be giving an advantage to the O&G Company that would like to keep competitors in the dark in order to procure as much leased acreage as they can at bargain basement prices? Certainly it can't take 3 months to determine the monthly production from any well. All I am saying is they shouldn't be allowed to withhold production numbers to gain an unfair bargaining advantage over unleased landowners.

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  2. FM,
    Like all things, balance is a good thing. The state should encourage drilling and also protect landowner rights. My experience with the Office of Conservation is that they are typically understaffed when activity accelerates. I don't think that anyone was prepared for the Haynesville boom. We likely won't be prepared for the TMS boom. Devon is a very good operator. They just appear to be "slow playing" some information. That doesn't make them the "evil empire".

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