Grey Panther on the money as per10 Apr 2024 19:32
Hi there LAW. There isn't a US equivalent of a FDP (field development plan) in most cases for the simple reason that the Crown doesn't own the mineral rights as it does in the UK. Where the land owner owns these rights, or has given them up or sold them to an OilCo, and so has only a royalty interest in them, the OilCo is usually able to press on very promptly to get a one well oil discovery on stream and into the tanks. Coupled with that, in a well explored / developed area like Seminole County, Oklahoma, there are numerous spurs to nearby oil tank farms, so it's not very far to truck the oil. There will also be numerous gas lines in many areas too. So I'm not too worried about selling the gas, rather than flaring it. It's so different to the UK. As to reserve size, typical Hunton discoveries these days seem to contain in the region of 50,000 to 100,000 barrels in the small remaining areas of this particular play but, even so, they're very economic, with a fast payback, even if individually quite small. We don't know much about the discovery yet but it's likely that the operator is now scurrying around tying up adjacent areas of interest, and so doesn't want to give the game away just yet. All this IMO, of course!