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Limited Use of Contractors
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Explanation: A lot of producers use third party contractors to perform the various
steps I in the process of producing a well. Often times the producer is at the mercy
of the schedule of its subcontractors. This may result in extended periods between
the time the well is drilled and when the landowners receive their first checks.
It may also result in substandard work because of the separation between the producers
and the landowners. Once the well is producing a lot of companies subcontract out
the pumping technician that routinely checks the wells to ensure proper function.
Result: By keeping nearly every step of the process in house, our landowners are
kept informed about every step of the process and what can be expected. The other
important result in keeping things in house is that Cutter Oil HAS the quickest
turn-around time of any producer in the state of Ohio. Some producers may take upwards
to six months to get a well online and producing whereas the average time for Cutter
Oil to have a well producing is 50 days. This results in a substantial loss of money
for our landowners. Our landowners deal directly with Cutter Oil employees and in
most cases they are members of the Cutter family.
Example: The following pictures
were taken May 11th, 2008. The first image was taken of the Cutter Oil Corbo Unit
that was drilled at the end of last year and the other was taken of a competitor’s
well in Gates Mills that was drilled just two weeks after the Corbo Unit. While
the competition waits for its subcontractors to come and complete their wells, Cutter
Oil was able to get the Corbo Unit online by the end of November. Cutter Oil will
have 6 months of production before the competition gets their well online.
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Corbo Unit #1 – Gates Mills
(Drilled 3rd week in October 2007 – Well online 4th
week in November 2007)
(Date Taken: May 11th, 2008)
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Gates Mills – Competition
(Drilled 1st week in November 2007; Well not yet online)
(Date Taken: May 11th, 2008)
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