Chevron to BTA Producers

Chevron signed a transfer of operation of 16 Vertical Wells in the Brushy Canyon zone to BTA Oil Producers in September 2020.

They applied for the transfer with the NM Oil Conservation Division and the transfer of operator was approved Nov 23,2020.

Sixteen wells appear to have been transferred from Chevron to BTA Oil Producers. Chevron stopped paying and reporting in August 2020. BTA reported December 2020 Production last month. September, October, and November were not reported by either company.

My question to other mineral owners in Sections 10, 15 and 20 of T23S R28E is if they have heard anything from BTA Oil Producers about the transfer and/or Division orders or W-4s for payment of current and future production.

I have not, and I have reached out to both Chevron and BTA Oil Producers months ago. Not worried about the money as the wells are very low production.

The new Chevron HZ wells are producing and being paid monthly.

Hi CMC15: Lee Evans here. We have written to each other via this Forum in the past. My wife Patricia and I have interest in S-15 T-23s R-28e. Just today (4-2-2021) we have received a Division Order from BTA Oil Producers, LLC. Just sorry to hear about the low productions and also Chevron not paying since August and that BTA Oil has been lax about their responsibilities in paying as well. Lee Evans

Hi Lee, I also just received the Division Orders for 2 wells in Section 15 T-23S R-28E.

Since the Operatorship was Ok’d by the State of NM at the end of November, BTA will be on the hook from December 2020 forward and since the wells are low production, payment on production can be sporadic.

The language of the agreement between BTA and Chevron states that BTA cannot drill new wells but must rely on production from current wells for income. These are 30 year old wells so production is very low. However, BTA has options to increase production. They can plug back and perforate/frac at shallower depths. RAM energy did this with great success back in 2002 in Sections 11 and 14.

Since Chevron was not interested in doing this, it is good for us Mineral Owners that this happened. Chevron was on a mission to plug those wells and did half of Section 14 and more in Section 23.

Hopefully we will see production increases and steady production on these wells for a good number of years.