Best Practices: Contractors

Limited Use of Contractors

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.

Corbo Unit #1 – Gates Mills (Drilled 3rd week in October 2007 – Well online 4th week in November 2007) (Date Taken: May 11th, 2008)

Corbo Unit #1 – Gates Mills
(Drilled 3rd week in October 2007 – Well online 4th week in November 2007)

Gates Mills – Competition (Drilled 1st week in November 2007; Well not yet online) (Date Taken: May 11th, 2008)

Gates Mills – Competition
(Drilled 1st week in November 2007; Well not yet online as of May 11th, 2008)

Cutter Oil has a proven ability to get the most out of our wells. Our wells produce more in the beginning and have a much longer life than any competitor, ultimately translating into more money for our landowners.

 
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