AKK 0.00% 0.3¢ austin exploration limited

Ann: Strong gas flow at Marco Polo & Columbus, page-32

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  1. 6,312 Posts.
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    Thanks Plough .... my question was really trying to get people to focus on the regional pricing.

    The US is not a single market for gas and their is not single index (like WTI) with a differential. Henry Hub is guide. There is a vast network of pipelines for transportation. Years ago Rockies gas was sent Eastwards and now well there is the Marcellus shale and that area has prodigious production which is selling for less than $2 much of the time.

    IMO this really does need to be a gas cap and it probably is .... Pierre wells are not known for gas.

    This is an indepth article but only really need to read the first paragraph
    gas-cap-over-oil-leg

    "oil reservoirs are discovered with a segregated gas zone overlying an oil column. The overlying gas zone is referred to as a primary gas cap. In addition to free gas, gas caps usually contain connate water and residual oil. The underlying oil column is sometimes referred to as an oil leg. In other instances, as reservoir pressure declines with production, gas evolves in the reservoir (see Solution gas drive reservoirs) and migrates to the top of the structure to add to an existing primary gas cap or to form a gas cap. If properly harnessed, gas caps can enhance oil recovery considerably. The degree with which they improve recovery depends mainly on their size and on the vertical permeability and/or formation dip. Producing wells usually are completed only in the oil leg to minimize gas production. "

    Good luck
 
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