Pantego-Arlington Royalty Owners Association, Inc.
Current Information – February 15, 2010
Pantego Gas Well Now Flowing
Pantego-Arlington West of Bowen
It happened on December 14th. After two weeks work of completing the well, fracturing, and establishing connections to the distribution pipeline, the first Pantego gas went to market.
Carrizo officials expressed very positive assessments of the well. It was a short well (around 2500 ft.) and at points in the first two weeks, its volume was just below 3 million cubic feet per day.
First royalty payments to lessors west of Bowen (
It appears that the well produced about 75,000 mcf in its first 30 days of actual production (though this period spanned 41 days because of stoppages that were necessary to adjust connections.) This was considered to be quite good for a short well.
East of Bowen side is in a different situation. There was a problem with the first horizontal bore that prevented Carrizo from frac’ing in early December. Repairs are being made to hold pressure, and Carrizo has announced that the frac’ing operation for the well East of Bowen were planned to start on Feb. 18th. It takes just a few days to do it, and then tie the well into the market pipeline.
Sales Pricing: One thing we have learned is that Carrizo has very little control over who they sell the gas to, and what the price is. They have delivery agreements with the pipeline company and the gas goes wherever the pipeline company delivers it. So, prices are going to be very volatile. Prices have been in the $5 to $5.50 range, but our price depends on what Carrizo is getting for the product at its point of sale.
Additional Wells: Carrizo officials have informed the Lease Committee, and
Bob Griffin
Secretary Pantego-Arlington ROA
817-261-5479
