Where is your property?
N/2 of Section 28, Block 72, Public School Lands Survey
E&P companies and oil majors continue drilling new wells, but more selectively, they drill only their best acreage; and ignore, write down or sell leaseholds on marginal acreage. For this reason, their production continues increasing, while capital expenditures decline (but remain positive). I think Cimarex or some other E&P allowed some leases in south Reeves County to expire undrilled (apologies to Cimarex if it was another company).
Everybody says capital dried up for the E&P companies, but some E&Ps are stronger than others, wouldn’t surprise me to see a strong E&P issue debt to exploit some premium reserves, since America (Wall Street) is the world leader at raising money.
I’m guessing Cimarex did not drill on Dick’s property for ten years because they acquired some producing well allowing them to hold your lease in production?
My lease was not renewed with Cimarex this month. I am in the North half of Section 28, Block 72, PSL Survey. Does anyone know if any companies are still interested in this area? I have read also that money has dried up. Any input or advice would be appreciated.