I just drove by the “Pecan” farm pad just about 10 minutes ago. They are currently mobilizing to that pad. There are personnel, fork lifts, a dozer, pipe racks, other equipment and what I would call frac tanks on location. I’m guessing the frac tanks might be there to store oil based mud. I haven’t heard whether they are using oil based or water based or a combo. Someone said they saw the rig on 957.
Well this is a blast from the past. I was fairly active on this site many years ago when the Eagleford was just starting up in Lavaca County and it’s good to see some of the same names and main contributors. Do you guys remember the failed Zaza Energy wells that were drilled just east of 77 and a couple miles south of 532? One of the wells was the Grahmann Unit and was drilled in 2011-2012. I never heard the true version of what happened but there were rumors of issues with the drill stem but I believe the real issue was the operator was not qualified to drill in the geology. I believe this area is in the wet gassy formation. I do remember watching the flare stack and it was massive. Anyways, I am curious if these wells relate to what EOG/Redhawk are after. It looks like Blackshear/Parr and horizontally headed towards both wells Zaza drilled. I’m guessing the Blackshear/Parr pad is 3-5 miles NE of the Grahmann well. I have not heard of any leasing east of 77 so curious if anyone had thoughts or comments on this.
1 Like
I believe that the ZaZa group was trying to target Eagle Ford instead of moving up hole and targeting the Austin Chalk section.
1 Like
Zaza flared enough gas from Grahmann to power Las Vegas for a month.
I guess as much depends on the knowledge skills and abilities of the contractors as it does the actual rock. Low bid (or your brother in law) is not always the best choice.
1 Like
If EOG were to move in that direction how do you think they would handle that existing pooled lease. It is HBP so would they bypass it or try to purchase it (if they believed in the geology)? Zaza no longer exists so I’m not sure who owns it, who knows it could be owned by a bank.
1 Like
If EOG likes that area, they would try to purchase the tracts instead of leaving a gap in their trend.
1 Like
Grahmann wells are now owned by a company called AMRWR out of San Antonio (8023 Vantage Dr., Ste. 1200, San Antonio, TX 78230). Wells transferred to them in 2024.
1 Like
I will be interested to see if they drill the Monster or Reimar well first, if the rig is indeed moving to that location. Both permits are approved.
Well if EOG was heading in that direction a prudent business would at least make an offer so they could have access to the data room and the logs for free.
1 Like
Could the activity on the Pecan farm pad be the construction of the pipeline that will run to the east…inside the Monster Rock unit ? I will be going to the Francis, Blackshear and Pecan farm pads on Friday so I will update then…
Does anyone posting here have a lease with KEW? More to the point, has anyone heard anything about KEW re future plans? I didn’t think they were exactly flippers.
Yes, my family leased to KEW. We are located roughly 1.5 miles or so NE of the Reimars Unit on the Fayette and Lavaca county line, bordering the West side of 77. If you recall the last time this area was leased up, KEW came to own 50% of the leases that Santa Rosa took. KEW really liked the area and wanted to do something, but never pulled the trigger. They even tried to find partners years ago during NAPE (the big oil and gas conference in Houston). Fast forward to today, KEW leased in the area again and competed against Redhawk and a few others.
I have a pretty direct line of communication with some folks working closely with KEW. Generally speaking, KEW has now invested in this area twice, so they want to make something of it this time. They have the operational capability to drill wells, but I think in their ideal world, EOG would prove up the acreage and either buy their leases or do a JV and be the operator. I contend that EOG is likely the best operator in this part of the country and KEW knows that. Given the Wolters wells and everything else drilled in the area that did not pan out, there really hasn’t been a successful well drilled in the area.
Francis pad has rig #1209 on it, Parr now has a Halliburton crew on it and it is getting large pipe water to it from CR 240 reservoir , Pecan Farm has 2 cranes ready to assemble a rig, and the new pipeline is marked off in the pastures going through Monster unit. They also have the storage tanks and are working on the pipeline at the pad site…northern end. Looks like Pecan farm pad is ready for the rig maybe still sending another ?? that would be great….Called to find out if another rig is on the way….and…. Information I get comes from several sources…company rep, landmen, contractors, other mineral owners on the units that have spoken with the company reps. Today it seems like everyone was told to not let any future info out whatsoever….and I did get a reason why…KEW was not mentioned, but was mentioned is negotiations ongoing to procure assignment of leases….as to why a hush hush for a while. Since KEW is the only one I see “in the way” I will guess it is with them.
KEW flipping to EOG and retaining an override??
That could be the case for now but they are definitely preparing for production. The rumor about the rig headed to the Pecan Pad on 957 proved to be incorrect. No rig on location yet. There are 6 ea 500 bbl storage tanks installed on the pad, two huge cranes and I saw miles of soft line laid in the 226 ditch headed to some water source that looked like the Pecan Orchard east of location. If they aren’t going to drill that it in September, it looks like it’ll be soon. A Landman told my relative that they wanted to spud at least one well on that pad in September.
It wouldn’t surprise me if KEW is trying to make a deal. They’re a small shop out of Dallas and if EOG wants to drill, let ‘em do it.
As for carving out an ORRI, I would certainly assume that will happen given that most leases range from 20-22.5% royalty, gives them 2.5-5% ORRI to carve out. That being said, the better the net revenue interest is for EOG, the better chance the well(s) have of getting drilled.
For sure, EOG has the resources, capital and the know how. The smaller operators sometimes have issues trying to complete the long laterals. Some of our experienced Drilling and Completion engineers stated the the Eagle Ford and Chalk is some of the most challenging rock that they every drilled and completed. Many of the inexperienced small operators had difficulties completing the long laterals to the end and left a lot of areas um-drained.
They might be having issues because coil tubing is there but so is frac.
This is the horizontal they are fracking on the Parr unit..running east. Does this mean there are problems ?? Again was told well logs were not great…does this verify ?