Decline Rate for New Horizontal Wells

No. I will ask. Thank you.

Here is some useful information for Eastern Howard Mineral Owners. Obviously, some generalities here due to differences in lateral length, operator completion design, better or worse geologic pockets etc. but this is taken from all eastern Howard horizontals in the three predominant benches: Lower Spraberry, WCA, & WCB. The curve is monthly oil production so your royalties should follow the decline. ![wolfcamp%20b|690x454](upload://28xwUi8Ll420IoyWOO

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thanks for the information. why isn’t there any activity east-south east of Big Spring? is the information limited? Family owns minerals near midway road and south moss lake road. keep leasing every year but nothing happening. I don’t live there but have visited the area a year or so ago… thanks

Jack, The area east/se of Big Spring is trending up onto what is known as the eastern shelf of the Midland Basin and the section is getting thinner with less potential for reservoirs, to the west, sw and nw of BS it slopes into the basin proper with thicker, more juicy rocks. The operators are going for the low hanging fruit first and will get to that harder stuff in due course, likely 2-3 years more. Hope this little lay explanation makes sense. Good luck with it! FYI: You may be in/near the area leased by Moss Creek Resources which I’ll bet you didn’t know is owned by interests from Shanghai!

I only pulled in results from the shaded area. For good decline analysis- you need sufficient data points. Development is trending your direction but like Mr. Smith said- as you approach the shelf it is thinning and is disparate reservoir quality. Smaller operators with no takeaway capacity are going to get dinged on sales big time. I would imagine the plan is to lease and wait for a spot on pipe in 2019-2020. Your area needs sustained high prices to work from a economics standpoint.

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When I asked Sabalo for alternatives, since I could not reach others, they refused outright. Would your recommendations have to be accepted by them or can they still refuse to release funds?

Would that be a Phil Bell?