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Reeves County, TX - Oil & Gas Discussion

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Reeves County, TX - Oil & Gas Discussion

Oil & gas discussion group for those interested in Reeves County, TX. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.

Members: 490
Latest Activity: 9 hours ago

Discussion Forum

BHP ROYALTY PAYMENT QUESTIONS - ESCARPA ROJA 57-T1-34

Started by Tony F Turpin 9 hours ago. 0 Replies

My elderly mom received the first royalty check in June 2016 for production from September 2015 through April 2016 for her small interest in the above referenced lease. The amount was far less than I…Continue

Keywords: Escarpa Roja 57-T1-34, Royalty Payment, Royalties, BHP

Reeves County TX Oil & Gas Permits

Started by Reagan "R.T." Dukes. Last reply by Clint Liles on Friday. 844 Replies

Post, discuss and share information related to Reeves County Oil & Gas permits in the replies below.P.S. Thank you to Clint Liles for championing the effort to keep us all up to date. Continue

Reeves County Lease Issue

Started by Mike Miller. Last reply by Mike Miller on Thursday. 2 Replies

When I purchased some mineral rights in 2007 there were 3 parcels that were currently under one lease agreement including all 3 parcels with no Pugh Clause or a Continuous Drilling Clause. The lease…Continue

Manhattan 183E and 183W

Started by E M. Last reply by E M Jul 16. 2 Replies

The property where I own nonparticipating  mineral rights (Section 183, Block 1) is being drilled. The horizontal drilling ends on another piece of property. Will I be eligible for royalties if oil…Continue

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Comment by Melissa Avery on July 18, 2016 at 10:01pm
Can anyone be more specific about the area where the active flairs are located?

Pro
Comment by Wade Caldwell on July 18, 2016 at 9:29pm
Reeves-
I have not seen production data except I saw the Ladybird wells completions showed dry holes. However, the flares on the well near Balmorhea and SW of Toyah are pretty impressive. Given Apache's continued leasing and development, it looks like they think they have something.
Comment by Dusty on July 18, 2016 at 5:09pm

Thanks Wade.  Based on what you posted I did some reading on allocation wells and it does sound like a whole new ballgame, not just making bigger units.  

I saw a recent Reeves Co. lease that had a provision added saying no allocation wells allowed without grantor's approval.  Wouldn't solve everything but seems logical to negotiate for when typical pooling limitations often allow the operator to go beyond the acreage limits in the lease if RRC approves the unit and RRC lets operators move forward on what sounds like a conditional approval of permits while leaving the details for the courts to sort out.    

Comment by Melissa Avery on July 18, 2016 at 1:27pm
I also am interested in what Apache is doing in that area
Comment by Reeves Rancher on July 18, 2016 at 11:44am

Wade-

Was wondering if you or anyone else has heard any rumors on the results of any of the Apache wells being drilled in Southern Reeves?  Looks like they may be up to something big.


Pro
Comment by Wade Caldwell on July 18, 2016 at 6:33am
Dusty-
I haven't looked up the permit, but that sounds like language you see on an allocation permit, which is where they drill across two different leases, often resulting in a de facto pooling. You might look at your lease to see what control you have over pooling. One of the legal debates is whether a lease that allows pooling also gives consent for an allocation well.
Usually the producer will ask the parties to sign a production sharing agreement. There are a lot of different formulas for sharing production. By surface acreage, by length of lateral, by length of lateral between the take points, etc.
Sometimes allocation wells make sense. Say two operators each drill 467' from a section line two laterals that are parallel to each other. That leaves space for a lateral right along the section line that could not otherwise be drilled without an allocation well.
Comment by Buzz Van Meter on July 16, 2016 at 8:08am

RigData Comment, 7-15-16 -- The US frac sand market could see a period of undersupply once operators again ramp up horizontal well completions with what seems to be perpetually increasing proppant volumes per well during hydraulic fracturing, reports The Land Rig Newsletter.  Rapidly increasing demand for frac sand through 2014 stemming from expanded unconventional well drilling, drove silica sand miners to increase capacity.  Not only was the number of wells being fracked rising, but the volume of proppant used per well saw significant increases as well.  In 2008, the average fracked well used about 900 tons of frac sand.  In 2010, the average amount of proppant used per well was near 2,300 tons.  In 2014, the average horizontal well used 4–5,000 tons/well.  After oil prices collapsed, silica sand production capacity shriveled when shrinking demand forced mine sales and closures.  Whether the frac sand industry can quickly ramp up again to accommodate a rebound in US unconventional oil and gas drilling and completion activity, as well as exponential growth in frac job intensity, remains to be seen.  Later -- Buzz

Comment by Buzz Van Meter on July 14, 2016 at 9:21am

Dusty – as well laterals grow longer and cross Section lines I have seen similar cautionary by the RRC in the 'Remarks' section on permits.  However, this one seems much more comprehensive than recent ‘alerts’.  Later -- Buzz

Comment by Dusty on July 13, 2016 at 2:36pm

TennisDaze, Buzz, et al

Any opinion on the two section, 1200+ acre, type locations permitted by Silverback, most recent the Admiral 4-48-47? 

The permit includes a big RRC disclaimer about not conferring the right to drill across lease lines and future court ruling possibly being required related to royalty allocation.  I've seen mention here of Silverback asking folks to sign production sharing agreements I'm guessing are related.  

Are these just great big units or a totally new situation? 

 

Comment by Prospector on July 13, 2016 at 11:25am

Donny,

The well that was drilled on your property is a terrible well. If someone is still willing to pay good money to buy it I would consider it.

 

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