CALGARY, AB November 17, 2009
/24-7PressRelease/ -- Argentis Group Inc. is pleased to announce their new Offset Well Service designed to assist oil and gas companies with production in the Western Canadian Basin in identifying wells that are producing within a section or quarter section basis of drilled or undrilled lands. The Offset Well Service helps oil and gas companies identify potential drilling prospects, drainage against reserves and possible offset liabilities that exist against freehold and crown lands among others.
Managing offset wells for most oil and gas companies is an almost impossible task due to the constant new drills that occur in the Western Basin. This coupled with the large land holdings that oil and gas companies and many non-core areas, means that offset wells against crown land and freehold lands often do not get looked at and in many cases, companies can miss liabilities such as compensatory royalties or they may miss viable drilling prospects.
Offset wells against farmed out freehold lands typically trigger a "drill, drop or compensate" clause in the land contract, which can allow the freehold land owner to receive a revenue stream either through a working interest or a royalty based on production. Chris Hamilton, Co-founder of Argentis Group, says, "There are numerous offset wells obligation that are going uncollected in the Western Canadian Basin that could add up to a significant revenue stream for individuals or companies. Based on a 5% royalty on an average oil well, this would mean that a freehold land owner could be entitled to $70,000 per year and probably over $560,000 over the life time of the well".
Argentis Group's Offset Well Service is designed to significantly reduce the time it takes to identify offset wells all while removing the possible human error that could allow for costly omissions. Typically what would take days, weeks or even months, can now be accomplished in a matter of hours and the results will help identify potential revenue opportunities or drilling prospects that would cover the cost of the service.
If you'd like more information about this topic, or to schedule an interview, please contact Argentis Group at info@argentis-group.com
About Argentis Group Inc.
Argentis Group is a Calgary, Alberta based consultancy firm assisting oil and gas companies with proven cost reduction and revenue enhancement strategies. Argentis Group can be contacted at info@argentis-group.com or you can visit our website at http://www.argentis-group.com.
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- alberta, crown, freehold, gas, interest, land, off, offset, oil, royalty, saskatchewan, set, well, wells, working
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