Drove by CR 225/226 the other day. Did not see any markers or surveys being done yet or any other type of prep. Nice land out there with 2 big houses up on the hill, but that is all I got. These test wells will be (1) well in the Chalk with a horizontal lateral, just like the others, done by Redhawk. Redhawk Operating LLC was founded in October of 2024 and is 100% owned and operated by EOG. There was another Redhawk operating and oil & gas companies but they have fallen off the books and were never owned by EOG or Redhawk leasing/landman operations, which are separate companies. Redhawk has the responsibility of drilling north of the Lavaca River, and where it curves to the south by Breslau they have the east of the river. EOG will drill the units on and south of the Lavaca River. EOG now has 3 units marked and ready to put pads on by the Francis well, to the southwest, south and east, siding up to Francis. You can already see the survey markings on the corners of the tracts.
EOG has marked most of, but not finished with, the units that are coming up on and south of the Lavaca River in the Valentine Survey. Looks like 4 new units there including tracts to the west off of FM 1295 next to the Modern and Matrix units, to the south, on FM 340 and still more south, and to the east almost to FM 957 but about 1/2 mile to the west of FM 957. Again, you can drive the area and see the corners freshly marked and the crews are still out as we speak marking them.
Now what I heard… they are getting ready to do a massive push in 2025 starting up to 8 new units, only 1 well on each pad. They need these pads up to keep the rig busy since the Gonzales County wells/units permitted will be drilled out shortly. That is why they have about 20 lines/pipes coming off their reservoir. Redhawk expects 2 more units to be made in 2025, which should give them enough info to see what they will drill out to hold.
FYI–the combination of the EOG and Redhawk leases in Lavaca County make up the 30,000 acres that EOG described in their 1st quarter results. They initially said these units would be 1200 acres with 2 mile (9000 ft) laterals. They updated this to say some of these laterals will now be 3 miles up to 13,500 feet. Using the 30,000 acres and 1200 acre units this gives 25 total units. 3 have already been done, one south of Shiner, Francis and Blackshear, leaving 22 left. However they have leased more lands, some just getting the tracts to 100% leased with many mineral owners on one tract, but RUMOR has it EOG “maps” indicate 16 more units and Redhawk a potential of 12 more. This would include the new 2025 starts in 2025, so looks like the plan is to have all the units done with one well by end of 2026 to mid 2027, then go back and add remainder of the wells to the units, and possibly test more pay levels. Heard majority of these are Chalk wells with some more west and south to be lower EF. Was told these “particular” Chalk wells are trending to produce by volume 60% higher than their EF wells when looking at a cumulative total after 5-7 years, which I can understand with the huge decline curve of the EF wells.
So, to sum up, fingers crossed on the Redhawk wells to the NE. This will determine what gets drilled, and EOG South of Lavaca River down to 90A will be crazy wild soon.
