Range of Services
In addition to contract drilling services, Sitter Drilling can provide a wide range of services on a cost plus or turnkey basis including:
- Field Services
- Lease Acquistion including negotiation and preliminary title work
- Surveys, Permits, Bonding and Insurance
- Acquisition of Right of Way
- Acquire Pipeline Access and Meter Tap Approvals
- Negotiate Gas Sales Contracts and Contract Administration
- Build and Execute Reclamation Plan
- Geological Evaluation
- Provide skilled and unskilled labor necessary for building drillsite including roads, water, holding ponds, etc.
- Haul Drilling and Frac fluids where required
- Cement and Casing Compliance
- Ensure Adequate Driller's Logs and Samples
- Supervise Nuclear and Electrical Logging
- Coordinate and Supervise Well Stimulation and Fracturing
- Breakdown and baffle/packer removal after stimulation
- Coordinate and Supervise Well Sand Pumping and Ceanup
- Coordinate Quality Testing with Commercial Gas Customers
- Supervise Well tie-in to Meter and Satellite Uplink
- Set Pump Jacks where necessary
- Set Electric Meter Cabinet and Poles and Run Wire
- Fluid Pumping and Disposal where necessary
- Supervise Monthly Well Servicing
- Production Accounting
Notes on AFE Variances
* These notes and observations were
provided largely from our friends at Falcon Holdings. We completely
agree.
Gas and Oil Wells tend to have their own individual "personalities" which either add to or subtract from the cost of well drilling and operation. Some lease sites will be nearer to, or farther from, commercial gas transmission lines requiring more or less pipeline and infrastructure. Well sites will be either nearer to or farther from public highways requiring either more or less road building. Access issues will control the costs of running electricity, building pads and setting tanks. These variables are almost always known prior to application for the various permits and initiation of any project.
However, there will often be unknowns, inherent in any drilling program, which likewise may increase or decrease the cost of drilling, testing, completion and operations. For example, certain wells may have paraffin intrusion, requiring additional chemical treatment adding to the overall cost. Certain wells may not require fracturing because it came on "natural" for some period of time, which will decrease the overall cost of completing such a well. Pump jacks may or may not be called for. Fluid disposal may or may not be required.
Consequently, the total costs for drilling, testing, completion and operation of each well, in all cases cannot be firmly calculated. Thus, we give only an "average" cost, going forward with the caveat that any given well will most likely be more, or less costly than the "average" and as our experience dictates, fall within this range. Should the client prefer to not share in the inherent risks of "cost plus" drilling, testing and completion, Sitter Drilling will assume such risks by offering turnkey fixed cost contracts, at a fixed price somewhat higher than a "cost plus" AFE.
Gas and Oil Wells tend to have their own individual "personalities" which either add to or subtract from the cost of well drilling and operation. Some lease sites will be nearer to, or farther from, commercial gas transmission lines requiring more or less pipeline and infrastructure. Well sites will be either nearer to or farther from public highways requiring either more or less road building. Access issues will control the costs of running electricity, building pads and setting tanks. These variables are almost always known prior to application for the various permits and initiation of any project.
However, there will often be unknowns, inherent in any drilling program, which likewise may increase or decrease the cost of drilling, testing, completion and operations. For example, certain wells may have paraffin intrusion, requiring additional chemical treatment adding to the overall cost. Certain wells may not require fracturing because it came on "natural" for some period of time, which will decrease the overall cost of completing such a well. Pump jacks may or may not be called for. Fluid disposal may or may not be required.
Consequently, the total costs for drilling, testing, completion and operation of each well, in all cases cannot be firmly calculated. Thus, we give only an "average" cost, going forward with the caveat that any given well will most likely be more, or less costly than the "average" and as our experience dictates, fall within this range. Should the client prefer to not share in the inherent risks of "cost plus" drilling, testing and completion, Sitter Drilling will assume such risks by offering turnkey fixed cost contracts, at a fixed price somewhat higher than a "cost plus" AFE.
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