Thanks. We are in the Breslau area (not too far from there) and was hoping for some activity and excitement soon. It's just been so quiet lately. :(
Anyone heard any updates on the EOG Tonkawa well? I wonder when EOG is going to finally announce some results from their Austin Chalk exploration program? Will they ever drill a well on their Lavaca/Fayette/Colorado line block? Sure seems quiet out there.
No production noted on Tx RRC either under EOG or Pallas in either "O&G" or "pending categories. Assume well is hooked up based on earlier comments based on field observations
What you can see of the Tonkawa unit from a side road shows they've built a tank battery but RRC shows it as "shut in" and I don't think it's been hooked up to gas line yet.
Kinder Morgan has a big gas transmission line nearby along with a big Phillips products line, but the closest gas gathering system they could tie to is 4+ miles to the west...long way to come for one well. Maybe that is the hold up, or EOG may be sitting on it so they can keep everything tight.
They haven't permitted any more wells in that four county area. If the Tonkawa follows the same pattern as "stealth" deals EOG's done other places it could be a while before anybody knows what they have there.
My property is the A-419 MCMILLEN Abstract. Looks like the well is 50 ft from my property if I am looking right. Had no idea. I signed with Pallas 2 years ago.
I agree with what you are saying here, I heard a rumor that the well wasn't even completed yet (i.e. drilled but no frac etc). EOG is definitely into playing chess, not checkers.
And chess with $7-$8 Million pieces on top of that!
Right now they are looking at this play (Austin Chalk Hz Frac play) from Karnes County to the Mississippi River in Louisiana (in various sub areas / not the entire trend).
I am amazed that they haven't even permitted a well in their big position in East-central Lavaca/ NW Colorado county yet.
Considering that EOG has extensive info (well results, core and log info, etc.) along this trend, their lack of putting a well in that area probably points to their lack of excitement about the prospectivity there.
For a company like EOG, acreage positions are like pawns on the chess board - valuable but low cost in the scope of things.
Probably a poor analogy but I am sure you get my point.
Agree with you. The Tonkawa unit sits about a mile away from my property, All my neighbors are leased(350 - 400 ac). I guess if the Tonkawa proves successful, other activity should sprout up fairly quickly.
Rock,
Generally I would agree with this analysis, but it wasn't that long ago that they went hard and heavy leasing this area? What has changed?
Additional analysis of core / data obtained from both this well as plus other tests along the trend (e.g. the Avoyelles Parish deep AC that they drilled and frac'd).
EOG is big on technical analysis whether it be from subsurface data (core, logs) or frac stimulation / testing results (e.g. the Louisiana well)
Plus they are continually obtaining new data from active wells that they are tying into their "matrix of understanding".
Just my opinion on what is happening here.
Production Seems to still be on the decline - with prices rising, perhaps production will pick back up.
Anyone have an idea of general per acre lease bonus and royalty percentage in Fayette County approximately 4 miles east of Smithville TX? Have received inquiry/offer from Wild Horse.
I haven’t heard anything about this area specifically, but to the east in Washington county I have heard of $1000+ per acre and 25% royalty. Was your offer in this range?
Not even close. 100 pa 3 year lease, option for another 3 years and a 16.725%. Should be worth more than that.
How big is your tract? Often times small slivers on the edge of a block that aren’t really needed to form a unit won’t command a big offer, at least initially. Sometimes with a little tract you have to settle for a poor bonus, try to work the royalty up a bit, and just hope you get in a unit.
I am mulling an offer tight now in Fayette County 11 acres approximaftely 5 miles south of Smithville. Terms offered are 3yr with 3 year option at 100 per ac py %16.75 royalty. Sounds like a year ago you might suggest trying to get better royalty percentage. Has anything changed there to your knowledge?
11 acres appx 3-5 miles south of Smithville TX. Bisected by Bastrop and Fayette county lines.
Nothing’s changed that I know of, except there’s a little more exploration going on now than there was 3 years ago. That means companies are testing new areas to see if they can bring in wells. They’re rolling the dice more.