Andrews County, TX - Oil & Gas Discussion

Comment

Comment by Ralpr on May 15, 2012 at 7:12am

Barrons.com article by Gabriel Sorbara "Three Picks in the Permian"...

FYI

Ralpr

Comment by Ralpr on May 13, 2012 at 9:47am

My Take on Sandridge article by Writer Michael Filloon of SeekingAl... 

Great Article which describes strategies being employed by Sandridge in the Central Basin Platform and the Mississippian Carbonate Play.  Great diagrams for your review and also the frack water issues and new methods for proper handling and use of frack fluids - namely water - sound very nifty.  Check it out!

Happy Mother's Day!

Regards,

Ralpr

Comment by Ralpr on May 4, 2012 at 10:19am

Seeking Alpha transcript Q1 Concho Resources'

In the Q&A, transcript of www.seekingalpha.com for Concho Resources Q1 results - they discuss Cline Shale characteristics and Wolfcamp and Wolfberry goals and their new area in the Northern Midland Basin.  VERY INTERESTING THING is that the Cline Shale (Pennsylvanian Sh.) is as widespread as the Wolfcamp and appears to be Permian Basin-wide! Matthew Hyde of Concho said "focused on the Permian are looking at a pretty broad distribution for the Penn shale or Cline equivalent rock. Depositionally [ph] , it is a more -- the term we use is clastic, which means more sand-shale sequence than the Wolfcamp, which is more shale carbonate rich. So they are a little bit different. The rocks are different, but we think they both have wide geographic extent, not only in the Midland Basin but in the greater Permian Basin."

Comment by Ralpr on April 25, 2012 at 11:49am

http://pubs.er.usgs.gov/publication/fs20123051?from=home

USGS Article - FYI

Assessment of remaining recoverable oil in selected major oil fields of the Permian Basin, Texas and New Mexico

Comment by Donald Skotty on February 14, 2012 at 10:14pm

Just received lease offer in PSL Block A33 (NW of Andrews) - $300 / 25% for 3 years.  How does this compare to others?

Comment by Ralpr on October 17, 2011 at 12:16pm

http://www.aogr.com/index.php/magazine/cover_story_archives/june_20...

ROZ - Residual Oil Zones are where it's at!

Comment by Polly Dross on October 12, 2011 at 2:30pm

FYI--My siblings and I have about 5 acres in Andrews County—S/2 of Section 2, Block A-44, Public School Land Survey. From 2008 to 2011 we were under lease with Landsmith, receiving $200 per net acres as bonus, 1/4th royalty, and a 3-year term. Then in December 2010, we received an offer for a top lease from Red Willow (through Dixon Services). This lease was for 3-years, a $250 bonus, and 1/4th royalty. This is the lease we are now under. But this month we’ve received another lease request from LandSmith—with a $300 bonus, 1/4th royalty, and another 3 years. Needless to say, we couldn’t do this due to our current lease with Red Willow. But you can see the bonuses are rising. Anyone leasing in Andrews County should consider this.

Comment by Roy D Mercer on October 10, 2011 at 11:05pm

Best advice I can give you is hire a knowledgeable attorney especially if you're gonna get a nice bonus check. Leases can come back and bite you. If you don't have many mineral acres to lease I'd be happy to tell you a few things to look for but You get what you pay for and you shouldn't try to do it on the cheap if you or your family have a good many mineral acres.. I ain't no expert.

Comment by J. A. on October 10, 2011 at 10:40pm

Roy D. , thank you so much for the info. You have been such a help as I have very little knowledge of all this.  These leases have such crazy wording in them, what do I need to look out for or should I worry about any of that?    Thanks again!!!!

Comment by Roy D Mercer on October 10, 2011 at 1:49pm

J.A.--Your minerals are about 4 miles SW of the town of Andrews and about one mile south of Hwy 176 which runs due east out of Andrews to the town of Big Spring. Most of the Wolfberry(Spraberry/Wolfcamp) drilling is going on beginning about 5 miles due east of Andrews to the north and to the south of Hwy 176.
Picture a rectangle standing on it's end running north and south about 5 miles wide and about 10 miles tall with Hwy 176 bisecting the rectangle in the center. Your minerals are about one mile west of the west edge of the rectangle and one mile south of Hwy 176. You're in the action.
There are no producing wells real close but you are in the middle of the Wemac Field which is an old Wolcamp field that most of the wells have been plugged. The closest producing well is one mile east of your minerals and was drilled in 2002 and is still producing and is inside of the rectangle. And get this-- there are a total of 16 new wells that have been staked around this producing well.
As far as your lease--you have to get 1/4 royalty minimum--and that's the best you will be able to get.
As far as lease bonus--I would say minimum $500-$800/acre if you get the 1/4 royalty. To give you a comparison--there is a Univ Lands block about 4-5 miles south of your minerals that tracts have been leased for $500 to $1,600 per acre in recent Univ Lands auctions. The more minerals you own in Section 11 the harder you can trade. The activity is coming your way.
I am by no means an expert but have been watching this area for several years. My minerals are to the northeast of yours and are being drilled now. Yippee! And good luck!

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