Investing in Oil and Gas

Day 2 of Drilling a New Oil Well. Oil, Gas, Oil and Gas, Drilling, Oil and Gas Drilling, Oil and Gas Exploration, Seismic, 3-D Seismic, Seismic Exploration, Investing, Investments, Exploration, Oil and Gas Investing, Oil and Gas Investments, Investing in Oil and Gas, Investing in Oil and Gas Book, Mike May, Oil and Gas Investor, Wells, 3-D, geophone, geohysics, seismic shoot, thumper, 3D Seismic, 2-D Seismic, thumper, www.investinginoilandgas.com

Day 1 of drilling a new oil well. Oil, Gas, Oil and Gas, Drilling, Oil and Gas Drilling, Oil and Gas Exploration, Seismic, 3-D Seismic, Seismic Exploration, Investing, Investments, Exploration, Oil and Gas Investing, Oil and Gas Investments, Investing in Oil and Gas, Investing in Oil and Gas Book, Mike May, Oil and Gas Investor, Wells, 3-D, geophone, geohysics, seismic shoot, thumper, 3D Seismic, 2-D Seismic, thumper, www.investinginoilandgas.com

Mike discusses the cementing plan for an upcoming well. The bid from the cementing service company includes two parts: an engineering section and a cost section.

Mike takes a fresh look at Mud Logging procedures on a drilling rig -especially the methods of collecting cutting samples. After explaining what Mud Logging is and why we do it, Mike breaks down the steps, challenges some industry norms, and makes recommendations to improve Mud Logging results. Mud logging is recovering drill cuttings at the surface while a well is being drilled and making observations and analyses of the cuttings. Our purpose in mud logging is to determine what formations are present at what depths and what if any zones contain oil and gas. Using a Dedicated Cuttings Sample Catcher. Catching a sample from the shale shaker before it is lost forever. Cleaning cuttings samples. Analyzing the cleaned samples. How to not miss a pay zone. Getting larger cutting samples. Preventing contamination. Quality control. Investing in oil and gas .com

Mike discusses coring a well that he will be drilling soon. He is considering taking a 60-ft conventional core to evaluate a target pay zone.

Mike discusses the methods of Formation Evaluation that he may use to assess the commercial capacity of a well he will be drilling soon. These methods include Mud Logging, Open Hole Wireline Logging, Formation Fluid Sampling, Drill Stem Testing (DST), and Coring. www.investinginoilandgas.com

We received a drilling permit to drill our oil. In Texas, the oil and gas industry is regulated by the Texas Railroad Commission. Whenever you want to drill a well, you apply to the Texas Railroad Commission and fill out what's called a Form W-1 and the title of the form is Railroad Commission of Texas Oil and Gas Division Application for Permit to Drill, Recomplete, or Re-Enter. Whenever you want to drill a well, you fill out this form W-1 and I submitted it recently and it was approved. It's just a simple, one-page form and, nowadays, you submit everything online, so you submit it electronically as opposed to on paper, but the form hasn't changed; it's been the same for years and years. It's just that now it's a PDF form instead of a paper document. I thought I would run through the form and just let you know what's on a drilling permit application. Actually, the drilling permit application and the permit itself are the same form. They simply take the application and add a few numbers to it to indicate that it's been approved, so Form W-1 is both the application and the approved permit. www.investinginoilandgas.com

Mike talks about the casing design for an oil well he is going to drill soon. Casing is the permanent pipe that is placed in a well immediately after it is drilled. Mike discusses how he designs the casing to account for potential collapse from outside pressure, burst from internal pressure, or failure in tension. Mike also discusses the smaller tools that are integrated in to the casing string including the float collar, float shoe, and DV tool. Mike is getting ready to drill an oil well and this is part of the preparation! www.investinginoilandgas.com

Mike talks about the phenomenon of "side swipe" in old 2-D seismic data. Mike has located a 50-acre structure in 3-D seismic data that he recently shot. There are two dry holes near the 50-acre structure that did not penetrate the structure. But they were very close! Mike suspects that those two dry holes were drilled on 2-D seismic shot by a previous oil company on this same land 40 years ago - and that they detected the presence of the large structure but they missed it when they drilled those two wells because the technology of the day was 2-D seismic (not 3-D seismic). Mike describes a short-coming of 2-D seismic known as "side swipe" and talks about how we can now surpass that previous limitation of 2-D seismic using modern 3-D seismic - which does not suffer from side swipe. Furthermore, he found an old open hole wireline log from one of these previous nearby dry holes. Having this old log of a nearby dry hole - and the new log he will obtain when he drills the new well on top of the structure - will enable Mike to verify that the 3-D seismic structure map is correct - because the new well log should show the same target formation about 200 feet higher in the new well than it was in the old well! A great place to look for oil! www.investinginoilandgas.com

Mike talks about preparing a drilling prognosis for an oil well he is about to drill in the next 60 days. A drilling prognosis is a written step-by-step plan for drilling and completing a well. The entire plan is executed within a matter of weeks. www.investinginoilandgas.com

Mike just staked a location in the field this week where he will be drilling an oil well in the next 60 days. Mike talks about staking the location and getting a plat from the Surveyor. Then he talks about planing to drill the well by writing a drilling prognosis which is a document that contains all of the details and step-by-step instructions for for drilling and completing the new oil well. www.investinginoilandgas.com