How will I know?


#1

Any drilling information on Section 185, Block 13, in Reese County, Pecos, TX? I signed a lease agreement with Noble Oil a year ago.


#2

It looks like NBL Permian has two producing laterals in Section 185, Block 13. They’re calling it the “Conger 185-184 Unit A”. I’d give NBL a call and see what the deal is because DrillingInfo says it’s been producing since January 2018. Their owner relations helpline is 1.800.220.5824.


#3

Thank you, I will give them a call now. Have a great day. :blush:


#4

We are also in Sec. 185, Bl. 13. There are two active wells on that section, both in the far western 160 acres. They are about a year old now. If you are not in that area, you will not be part of those wells. We also hold acreage in the center and eastern parts of the section. Our lease to those parts of the section has recently expired. Whether Noble will renew we don’t know.

There are no new Noble drilling permits in the section at this time. For the most part, Noble seems to be concentrating in areas to the north and east of Sec. 185 at the moment. Oil is low and our wells were only OK. They may be looking for better areas. But all this is speculation on my part.


#5

Good to know. I signed my lease January 2018. Have a great day.


#6

Those wells of Noble’s in Block 13, section 185 are GAS wells with high production of condensate…not oil. Those tall slender tanks in the batteries of each well are condensate tanks and condensate sells for a different price than oil. They’ve been adjusting the Conger wells for maximum optimum production for the long term…and they DO have more well sites staked in sections 183, 184, 186, and 187. Oxy has some staked in 187 as well. BTW, Primexx and Noble have 6 inch gas gathering lines all over that area and are building more for the wells they are going to drill there later this year.

ol’Lawrence in Verhalen :stuck_out_tongue_closed_eyes:


#7

Lawrence, those wells are listed as oil wells, not gas wells. Yes, there is gas and condensate but also a lot of oil and they were permitted as oil wells. Nearly all of our royalty dollars are for oil. You are there and can see the tanks, and you know much more than I about the oil business! But the vast majority of the money coming from the wells is for oil.

Unless condensate is called oil on our statements? There are a couple of different kinds of gas, which don’t amount to much. Then there is something called PLT, of which there is a lot but doesn’t amount to much money (but is more than the gas). And then there is oil, which in dollars is ten times what all the others add up to.


#8

These days oil and condensate do not sell at significantly different prices. Oil is produced from an oil well and condensate is essentially the oil from a gas well. The RRC has agreed to field rules that allow operators to classify wells as gas well even though they would be oil wells under the statutes. For example, the Ford, West (Wolfcamp) field rules allow all wells to be classified as gas wells, even if they produce very little gas. Operators can then apply for reduced gas severance tax rate for “high cost gas wells”. That reduces the severance tax paid to the state and that savings should be passed on to the mineral owners. The Conger wells are both reporting under RRC Lease ID 08-50343 and 5 digit identifier is an oil well. Gas wells are given 6 digit identifiers. Gas wells are all reported singly, while multiple oil wells can be consolidated into a single RRC number.


#9

That’s exciting! Thanks for the info. :dancer:t3::dancer:t3::dancer:t3: