Dimmit County TX - How Long Before Drilling?

Thank you sir - I would hope there is someone that might be able to keep us informed as to what the decisions are! It is appreciated!

John Everett Fine said:

The time between the date of a hearing and an order being issued can vary quite a lot. Lawyers have much to do with this. The final step will be when the recommendation of the examiner goes to the 3 Railroad Commissioners at monthly conference. Usually, the examiner’s recommendation is approved. June Conference is tomorrow, the 22nd. Unlikey the Eagleford hearing will go to conference before August.
I may sit in on some of this hearing. Sounds interesting.

At the hearing today before the Texas Railroad Commission for consideration of EOG Resources’ application for temporary field rules for a new field consolidating 27 existing fields in the Eagle Ford Shale in South Texas, the applicant EOG Resouces announced that it was withdrawing its application. (See my previous post on this application here.) EOG’s lawyer said that the application was filed at the suggestion of Railroad Commission staff in order to have uniform rules for all wells drilled in the Eagle Ford, but because of the number of parties who had appeared in the hearing in opposition to the application, EOG would withdraw the application. He said that EOG plans to file a new application for temporary field rules for the Eagle Ford in eight counties where EOG has acreage: Gonzales, Wilson, Karnes, Atascosa, McMullen, La Salle, DeWitt, and Frio Counties. He said that the rules EOG would propose would apply to oil wells only, as EOG’s acreage is in the oil window of the play. Other operators in the gas portion of the play are also expected to file additional applications for temporary field rules for gas wells.

John Fine www.petrotexas.com jfine@petrotexas.com

Been out for a few weeks and still checking the TRC - is it just me or are things slowing down a bit? Although I heard last night our neighbors in our pool have been contacted to do a 3D. Hopefully we get a call soon.

I guess the withdrawal of the application benefits the land small land owner at this time I guess?

Stuart E. Isdale said:

This is all greek to me I am not sure what difference it makes if the RRC sets up designated fields. So if Eagle Ford is oil, what happens if they hit gas which I heard there were big pockets of gas found in Dimmit County. Also all of my buddies that have production on their property in the area have told me that it is not if they will drill but when - as a relative of a land owner it sure keeps you on pins and needles. I told my mother in law who owns the land in Dimmit County about 7 miles north of Catarina to sit tight but it could be this year and it could be in 10 years before production within her pool. I don’t know. Problem is she is not getting any younger and it sure would be nice it something happened soon for her. Thanks guys for all of your input and information. It is truely appreciated since this is new to us and I have been disignated the keeper of keeping up with what is going on out there!

Nick Privett said:
Last I heard the RRC was setting up 2 fields for the Eagle Ford…an oil field (Eagleville) & a gas field (Hawkville) but, I may be behind on that “hearing”.

The cost of services have sky rocketed in south Texas. Too many companies trying to drill & complete too many wells @ the same time. Most of the newer leases have drilling requirements over a 1 to 3 year period & they were all signed around the same time. A few of the leases have been drilled up to the point that they can hold their leased acres but, many others are not & the primary term drilling requirements are requiring a very aggressive development program. I understand several of the good small operators are selling their positions to the big independents because they can no longer justify the expense of drilling & completion. The big independents are the only ones that have enough work to pound done the service companies costs.

OK - very interesting take on the situation. Makes since with all the activity in the Dimmit County - the guy doing the 3D in our pool said he was so backed up it was crazy. So are the suppliers jacking the price up or just trying to meet the demand? I am pretty sure my wifes family has a 3 year lease but I will be very surprised if something doesn’t happen within that time. I do know the landmen where hitting it fast a furious last year to get as much as they can (which they did) but for that I can see what you are saying. Interesting as it developes - didn’t know there was so much involved - boy was I wrong - learning as much and as fast as I can!! Thanks for all the information - it is appreciated.

Sullivan finally contacted my in-laws to survey the land and apparently others in the pool so I am thinking that is a good thing. Not much activity in Dimmit Co. lately as far as what I see on TRC though as far as drilling permits!

The gentleman from Sulivan said that it will take about a month to complete the survey - they started on my in-laws ranch Sunday - he said if things go well they might begin drilling by the end of the year - I will believe it when I see it - things don’t seem to be moving that fast unless you have a very acreage. I drove down the Brisco road - activity about every 1/2 mile or so in different stages. The survey man said a new well in going at the rate of 1 a week right now. It was crazy driving thru Catarina, Asherton, and Carrizo Springs last week - never in my life seen so much activity!

Stuart E. Isdale said:

Sullivan finally contacted my in-laws to survey the land and apparently others in the pool so I am thinking that is a good thing. Not much activity in Dimmit Co. lately as far as what I see on TRC though as far as drilling permits!

Parents passed away a year ago leaving me 20.85 ac. - 12 miles outside of Carrizo… Is this what all the letters are about??

Not knowing exactly where you are located - my questions to you have you been contacted by a landman - is your property currently leased? You might want to check around with some of the surrounding land owners to see if they have heard or done anything (if possible) so at least you have some idea as to what is going on! All I know that area is HOT right now!! Going out there next weekend to see what I can find out myself.

Liza HM Schuetz said:

Parents passed away a year ago leaving me 20.85 ac. - 12 miles outside of Carrizo… Is this what all the letters are about??

Oh yea the most important part - sorry about your parents! Lost my Dad several years ago - still tough!!

Stuart E. Isdale said:

Not knowing exactly where you are located - my questions to you have you been contacted by a landman - is your property currently leased? You might want to check around with some of the surrounding land owners to see if they have heard or done anything (if possible) so at least you have some idea as to what is going on! All I know that area is HOT right now!! Going out there next weekend to see what I can find out myself.

Liza HM Schuetz said:
Parents passed away a year ago leaving me 20.85 ac. - 12 miles outside of Carrizo… Is this what all the letters are about??

Still no word on the survey - should be going along nicely - ready to here something!! Not much going on with information or discussion on this site - hope that is not a bad thing!

My father has the gas, oil, and mineral rights to 1200 acres in Dimmet County. The family owned ranch totaled 3000 acres at one time until he sold his land but kept the oil, gas, and mineral rights. A landman named, Garret C. Nies, recently approached him about leasing. I can not find out much about him, so I do not think we will pursue this lease. My father is interested in finding a great landman to lease this out. The land is located near Crystal City. He would like to lease it for $1200 an acre for the right to drill and 25% royalty on a three year lease where there is restricted use of fresh water, cover land damage is addressed, and no warrant of the mineral rights. I understand that Anadarko is drilling in this area. Is this correct?

There are several that I know of but yes you are correct along with Chesapeake or at least those are the two big hitters leasing in Dimmit Co.

leila armstrong winssinger said:

My father has the gas, oil, and mineral rights to 1200 acres in Dimmet County. The family owned ranch totaled 3000 acres at one time until he sold his land but kept the oil, gas, and mineral rights. A landman named, Garret C. Nies, recently approached him about leasing. I can not find out much about him, so I do not think we will pursue this lease. My father is interested in finding a great landman to lease this out. The land is located near Crystal City. He would like to lease it for $1200 an acre for the right to drill and 25% royalty on a three year lease where there is restricted use of fresh water, cover land damage is addressed, and no warrant of the mineral rights. I understand that Anadarko is drilling in this area. Is this correct?

The ranch is ten miles outside of Crystal City. When my grandmother owned it it was called the MW Ranch. I was told that the only way to negotiate from a position whereby I know I am not leaving anything on the table, is investing a couple thousand dollars to hire a contract landman to do a lease takeoff so I can see who else has leased, come up with other mineral owners and then call to inquire as to bonus they received and come up with possible competing offers. Is this correct advice? Thank you so much for replying. I would be very happy to get some names and phone numbers of the landmen.

It sounds logical but I am no pro what so ever at this - I am learning just as apparently you are. I do know there are people who frequent this sight often that might have some professional insight to your observation and questions. If not hopefullyt they can point you in the right direction.

I too have property in Dimmit Co. and I am looking for information pertaining to a landman with WEXCO RESOURCES,LLC - his name is Leo Whelan… I have googled Wexco and several other leasing companies that have contacted me (Wyldfire Energy) CAN NOT find anything on either of them… does anyone know who they are…has anyone ever heard of them…please advise.

Never heard of him - sorry!

Liza HM Schuetz said:

I too have property in Dimmit Co. and I am looking for information pertaining to a landman with WEXCO RESOURCES,LLC - his name is Leo Whelan… I have googled Wexco and several other leasing companies that have contacted me (Wyldfire Energy) CAN NOT find anything on either of them… does anyone know who they are…has anyone ever heard of them…please advise.

Looking for an update for any activity in Dimmit County.

I live in Oklahoma City, and know Nick Privett, who posted on here last summer. I have known he and the company he works for for years. My father had 10 or 12 acres MOL that his father purchased back in 1926. Apparently, there were a lot of Norwegians in Minnesota that thought they were buying 10-12 acre plots to retire on!

Anyway, my dad passed away a little over a year ago, and my mom subsequently received a letter from Sullivan , which is located here in Oklahoma City, maybe a year ago indicating that a client wanted to conduct a seismic survey and wanted a permit to conduct the seismic on two of the three plots of land. I went by their office and spoke to Mr. Sullivan and he indicated that it may take some time to get all the land owners to send in their signed agreements. Last summer, I called Sullivan to get an update and was told not to expect any activity until next year as there were two large land owners that were "being difficult" to deal with. Then, this fall she received communication from another landman that indicated the desire to permit the third plot of land. Haven't heard of any activity at this point.

Sorry to here about your Dad!

I was just out there right between Asherton and Caterina - lot's of activity all around us still. My understanding for some reason things would move along faster but for some reason some of the land owners in our pool had been difficult. Not sure if it was money or hunting - anyway I don't see where things are slowing down - just wish everyone in our pool would get on the same page to get this thing going before all the surrounding drilling sucks us dry - LOL

John Walstad said:

Looking for an update for any activity in Dimmit County.

I live in Oklahoma City, and know Nick Privett, who posted on here last summer. I have known he and the company he works for for years. My father had 10 or 12 acres MOL that his father purchased back in 1926. Apparently, there were a lot of Norwegians in Minnesota that thought they were buying 10-12 acre plots to retire on!

Anyway, my dad passed away a little over a year ago, and my mom subsequently received a letter from Sullivan , which is located here in Oklahoma City, maybe a year ago indicating that a client wanted to conduct a seismic survey and wanted a permit to conduct the seismic on two of the three plots of land. I went by their office and spoke to Mr. Sullivan and he indicated that it may take some time to get all the land owners to send in their signed agreements. Last summer, I called Sullivan to get an update and was told not to expect any activity until next year as there were two large land owners that were "being difficult" to deal with. Then, this fall she received communication from another landman that indicated the desire to permit the third plot of land. Haven't heard of any activity at this point.

I am a mineral owner in Dimmit County and four weeks after the W-1 was post on the RRC website a rig was moved onto the site and drilling began days later. Our lease was signed last October and things move very quickly!