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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: 391
Latest Activity: 20 hours ago

Discussion Forum

Reeves County TX Oil & Gas Permits

Started by Reagan "R.T." Dukes. Last reply by Clint Liles 20 hours ago. 594 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 Mineral Interests

Started by Robert Millwee. Last reply by Anthony Davis on Monday. 13 Replies

Hi, I have had a couple offers for mineral interests in the following and would like info on what is fair in terms of agreements. Also, is anyone drilling nearby?1. SW/4SW/4 of Section 15, Blk 59,…Continue

Pooling existing well

Started by John J. Sexton. Last reply by TennisDaze Jun 24. 2 Replies

I have an existing well on my land near Pecos.  I had a clause entered into my leasing of mineral rights prohibiting pooling without my approval.  I have been asked to allow pooling of my land to…Continue

Drilling or Well Activity in BLK C-8 Reeves County ?

Started by Eduardo Canepa. Last reply by Buzz Van Meter Jun 22. 7 Replies

Hi everybody, my name is eduardo, and im new here, i need to know if my property have something. Blk C-8 tract >21 ab 1726 sec 21 pslout of w/2does anyone know if there's currently any drilling…Continue

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Comment by Buzz Van Meter 23 hours ago

VERY good read... Permian Perseveres

By Steve Toon || Hart Energy

May 1, 2015 

            http://www.oilandgasinvestor.com/permian-perseveres-793381#p=full 

Far West Texas, below the New Mexico border, is considered one of the most remote regions of the country, yet on a spring day in March you wouldn’t know it.

Have a fine holiday weekend!  Later -- Buzz

Comment by Billy R. Simpson on Wednesday

I heard from a reliable source that BHP was considering spinning off their interest in Reeves county.

Comment by Clint Liles on Monday

Helen,

GIS Map of Reeves County Block 59/Section 16 and surrounding area:

Clint Liles

Comment by Clint Liles on Monday

Helen,

I don't see any activity in the area of Reeves Co. Block 59/Section 16 but I did find a Completion Report on a well next door to the N/E in A-2553.   Well named Atlantis 59-10 1H was drilled in 2013 by Energen:

http://webapps.rrc.state.tx.us/CMPL/viewPdfReportFormAction.do?meth...

Clint Liles

Comment by Buzz Van Meter on Monday

Georgia – that’s quite a nice article, especially the map.  For those who prefer, here’s a link to the newspaper article and also IHS’s Press Release:

http://www.mrt.com/business/oil/article_3d8de274-1c21-11e5-aa05-ff9...

http://press.ihs.com/press-release/energy-power-media/still-adolesc...

IHS is very well-respected in the industry.  Thanks -- Later -- Buzz

Comment by Helen Baldwin on Monday

Does anyone have information on Block 59, Section 16?

Comment by Georgia Jones on Monday

Very positive article regarding IHS analysis of Wolfcamp Deleware activity.

Reeves%20County%20Article.pdf

Comment by Will S. Williams on Monday

Wade, I would have been willing to buy you lunch for all that you have shared in your comments below. Very timely, thank you. You answered exactly the question that was on my mind. I recently received another letter offering $10.5K per NMA to buy some of my mineral rights. 

Comment by Marian Gage on Sunday

Thank you Wade...I always appreciate your perspective and experience too!

Comment by Wade Caldwell on Sunday
As far as selling minerals, recently turned down $25,000/acre with surface in Orla.

It is very dependent on circumstances and location, but if you do a discounted cash flow analysis it is easy to come up with figures well north of $15,000/acre. Google discounted cash flow analysis, and you will find several online calculators. The assumptions you choose can be tricky, but this was based on conservative assumptions. Reeves has multiple pay zones. The play is still in its early stages. Only a small percentage of the area has been developed. These are sophisticated risk takers who are out ther buying minerals.

The bottom line, in my opnion, is do not sell minerals unless: 1) you need the money now; 2) you need to sell to diversify your asset base; 3) you have small acreage position and do not want to hassle with managing it, and cannot afford to get good advise on negotiating leases; or 4) you are convinced the shale boom is a bubble and will eventually go away. I see situations all the time where people who acquired minerals in the 1920's through the 1990's are making more in royalties each month than they paid for them. Even if we made huge strides in alternative energy, it would take decades to replace all the different machines that use oil and gas. There is always the chance that some energy source could be developed that could render minerals near worthless, but I think the last 100+ years of experience, plus all the exisiting oil and gas burning machines that would have to be adapted or replaced, would soften the blow and spread it over a long time.

Admittedly, this comes from a strong bias not to sell minerals. But you own a finite resource. They aren't making any more land. I see the long term prospects for mining and agriculture as very bright. The question is whether you can withstand the short term cycles. Many cannot, and this is understandable. Also, the increasing fractionalization of mineral ownership is a problem to be addressed.

I will end my rambling. Just keep in mind that the $4500-13,000/acre prices we are discussing today, are for minerals you could have bought for $500/acre 10 years ago, $100/acre 25 years ago, and $2/acre 90 years ago.
 

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