Hi All,
Curious what lease bonus are going for in Gaines county right now? I have minerals in the North East corner and I got an offer for 3 years 25% at 400 an acre.
Thank you for approving me. I am enjoying following questions and answers. Recently signed a oil and Gas lease in Gaines County W/2 Section 282, Block G So of course, Iā m hoping this is an active/or soon to be location.
The following paragraph refers to Andrews county but has some interesting information about San Andres horizontal wells.
http://www.rrc.state.tx.us/media/17913/08-77211pfd.pdf
The Shafter Lake, N. (San Andres) Field is mature, generally classified as a nearly depleted field that has been developed with vertical wells. The field has produced a cumulative production of 1.26 MMBO and was producing 10 BOPD from the entire field with vertical wells. The average cumulative production for vertical wells is 42,000 BO. The top eight vertical wells have cumulative production between 87,000 to 109,000 BO. Forge Energy recently drilled four horizontal wells in a section of the field that has six plugged and depleted oil wells completed in the San Andres formation. The Fischer State 17 No.1H, was completed in December 2011. The Fischer State 17 No.1H had an initial potential of 384 BO and 154 MCF of gas per day and 2,793 BWPD with a flowing tubing pressure of 335 psi. The Fischer 4 No. 2H was completed in December 2010. The well had a maximum oil rate of 465 BOPD and currently produces 59 BOPD. The Fischer 4 No. 2H has produced 74,424 BO and 35.8 MMCF. The Fischer 4 No. 4H was completed in July 2011. The well had a maximum oil rate of 557 BOPD and currently produces 57 BOPD. The Fischer 4 No. 4H has produced 46,472 BO and 16 MMCF. Because the wells were completed in depleted, plugged out sections of the field the additional production from the horizontal wells represents oil production that has been left behind by vertical drilling. The oil produced by the two horizontal wells in 18 to 12 months is equivalent to oil production produced from vertical wells in 50 years. Force Energy is planning on drilling additional horizontal wells.
I received and offer to release my, (Clearfork,) Gaines Co. acreage for 25% royalty and $400 per acre surface and $500 to al depths, 3yr term. This is an improvement after their initial lowball offer. So it appears that things are looking up in Gaines Co. Any advice or potential pitfalls from the group is appreciated as I am a bit new at this
Thank you J-F. That was very comprehensive and better than the one I read a year ago in Mineral Wise. This is more comprehensive and to the point and exactly what anyone new to this business should have on hand. The other is a good Land Man to help explain some of the pitfalls!
The description of the property is a bit brief- Sec. 270, Blk.G,WTRR Survey in Gaines Co. Not sure North, South or where but it is 120 to 40 acres. We have a little discussion on the correct acreage and they donāt necessarily want to do a full blown Title Opinion. Itās a bit tangled up with an interpretation of a 1949 will. Itās something easier to talk about but not type if you know what I meanā¦ Appreciate the feed back!
We have Labor 8, 9, 12 - League 303, southeast of Seminole.
Hi, Sharon. I can not authoritatively respond as to how oil companies choose an area for development. I believe they use seismic and other test results to data crunch in support of drilling in an area of interest. You might want to see if the company you are dealing with has permitted wells in Gaines county: http://webapps2.rrc.state.tx.us/EWA/drillingPermitsQueryAction.do You can select āGainesā county and click submit. Then you can click āpermitted operatorā at the top of its column to sort alphabetically by operator. Please share more as you will. AJ
AJ, I didnāt find the company that contacted us among those listed using your link re drilling permits in 2016, Gaines County. We have not signed their offer because this oil/mineral situation seems so volatile[!] at this time. We donāt feel rushed and want to make the best decision.
Thank you so much for helping educate us!
Sharon Edgar
Hi Sharon,
I would love to try to help you but the RR Commission GIS(Geographic Information Survey)mapping system and the GLO(General Land Office)only use Abstract, Section and Block number for identification of property. If you can find an Abstract # or Section/Block # I will try to help you. If you own the surface property these legal descriptions will be on the Gaines County property tax receipt you receive from Gaines County Appraisal District.
League/labor/lot land survey system is a hold over from the original Spanish Land Grant days and the beginnings of Texas independence. A league is 4428 acres and is subdivided into 25 177 acre tracts of land called labors. Labors can be subdivided into lots. These surveys are not always rectangular. The original grantees of a league (or sub-league) could choose where to place their property and what shape it would be as long as it conformed, more or less, to the 4428 acre rule. A league is measured using a Spanish unit of length called a vara and is composed of 5000 square vara. A vara was not strictly defined in the original surveys and varied in length from 32 to 38 inches. A standard length of 33.3333 inches was adopted by the state of Texas in 1919. All Texas Public School Land Grants are in the league/labor survey system. Leagues can exist without labors but labors cannot exist without a league.
Clint Liles
Mr. Liles, I have been reading this site for weeks and have been so impressed by your knowledge: you are the reason we signed on to the forum. Our land grant designation is Dawson Public Schools and weāve gone from zero to perhaps 2 in our level of understanding what all this means. The USGS mapping of Wolfcamp has been very interesting and we are eager to grab every scrap of information available before signing the contract. Thus far we have one Landman and two attorneys involved in this transaction. Whatās odd is it feels as though others think itās extremely important, yet to our faces they are casual, as though getting this through is not that big a deal somehow. Weāre experiencing a bit of cognitive dissonance to say the least!
It appears two companies have acquired leases in League 303 Labor 9 this year. Both companiesā names begin with the letter āCā oddly enough.
Zoomed in GIS Map of Gaines County A-930/League-Section 303/Labors 8, 9, and 12:
Clint Liles
Sharon/AJ,
I see wells in this area producing from 4 different formations:Strawn, Wolfcamp, Spraberry and Devonian. Thatās a good sign.
Clint Liles
And horizontal San Andres activity by Ring Energy and others. Ditto for San Andres ROZs. I am unsure how much impact being on the CBP or Midland Basin has in this area. This map purports to show the delineation between the Central Basin Platform and the Midland Basin as a resolution below the section level. Check/choose āGeologic Featuresā under Operational Layers: http://gis.utlands.utsystem.edu/WellDataApp/
You have all been truly incredible. I havenāt had an opportunity to give your posts the attention they deserve, but as Scarlett OāHara would say, Tomorrow is another day!
Thank you again and shall return Saturday,
Sharon
You are welcome, Sharon. If you are in a position not to have to worry about the whether the deal falls through, then that is a nice driverās seat. Please check permits for the year 2014. It would be interesting to learn the bonus and royalty expectations for other mineral owners in your area. AJ
Mr. Liles,
I will find more information on the RR Commission GIS and GLO of our property. Thank you for telling me what I need to know.
Best, Sharon Edgar
This is a well in Dawson CSL League 303 Abst 930 Labor [Lah-bore] 10: http://wwwgisp.rrc.texas.gov/GISViewer2/index.html?api=16534121
Which two parcels do they want to lease? Mind sharing the name of the company or land group? What are they intending to target?
Thanks, Clint! HL Brownās well about 2.5 miles from Sharon Edgarās minerals was recently drilled. Do not know if it is a DUC or what. http://wwwgisp.rrc.texas.gov/GISViewer2/index.html?api=16538411
Iām certain my husband does. Iāve been rather on the periphery of things, but have found the entire business intriguing. Itās a whole world unto itself, isnāt it?
How do oil companies choose the areas they want? It seems so random to the uninitiated.
Sharon