Karnes County, TX - Oil & Gas Discussion archives

Anyone know of the going bonus rate on the Karnes/Wilson Co. border?

My family has several lots all over Karnes City. We are only being paid royalty on SW Section 1-H. Is anyone being paid on any other well in the SW Section or any other section. I understand there has been drilling and production at over (or under) the city. Wondering what is taking so long for the division orders to go out.

I referred back to here to find out where to go with the Railroad Commission to find out if a city is being drilled under. I was given this information before and I guess it was part of what was deleted.

Timing of division orders being sent out is directly tied to the complexity of the interests in the unit.

2-4 months is normal for non town units - town lot plays will take much longer

I would go to the Tx RRC GIS viewer (link below) and navigate yourself to the towns in question to find recent drilling activity.

http://www.rrc.state.tx.us/about-us/resource-center/research/gis-viewers/#

rrc is a great site for karnes county sw unit has 3 more permits

Rockman I could not find where to put in City Name. I am inquiring about Fall City, Hobson & Helena and Kenedy

There is no place for city name - use the pan option to scroll around the GIS map to the town / area you want to investigate.

Or if you know the survey number of the town you are seeking, enter that

Thank you Rock Man I figured Cities would take a long time for division orders. So many own 1 or 2 lots. A lot of people to locate and sign up.

Texas Lady, good news about SW Unit. thanks

Does anyone here know what is the estimated average production life of a typical oil well in the Eagle Ford Shale in Karnes County?

Average life for an Eagle Ford well is an educated estimate since the play is still in its early stages, cut these types of reservoirs can produce for 20-30+ years assuming there are no mechanical failures with the wellbore that cannot be fixed.

Similar types of reservoirs (e.g. Barnett Shale) have seen wells with 30+ years of well life.

Of course, the majority of the well life will be low rates after this initial rapid decline in the first few years of production.

Re: Drilling multiple wells off one platform.

Every Royalty owner who has participated in royalties from an oil well in the EF shale knows that there is a very steep rate of depletion in production from a single well ( 87%) in a short period of time (two years).

However, according to a friend of mine who works for a fracking co., successive new wells can be drilled from the same platform which the original depleted well was drilled, starting the process all over again.

Obviously, because of the plunge in the PPB last year, and the resulting precipitous drop in royalty payments, production companies are not drilling new wells--or, if they've been drilled, perhaps just not putting them into production-- on those same platforms. Can anyone here shed any light on where the PPB has to rise in order for the drilling and production to resume?

The PPB floor that needs to be exceeded for companies to drill will be company dependent depending on their source of capital and related issues as well as theoretical D&C and operating costs.

A company like EOG (IMO) will have a lower floor for increased drilling versus a smaller private equity group that doesn't have the cash flow and is paying 8-10% per year on their equity funding.

Clint, can you please generate a map showing new permits within a 5 mile radius of the City of Kennedy, Tx?

Kevin,

I don't see where that's possible using the RR Comm GIS Mapping System. It may be possible but not to my knowledge. Folks that have Drillinginfo.com subscription may have the ability to do that.

Clint Liles

Thank you Clint, I’ll try that.

What are right-of-way pipeline prices in Karnes County for 8 inch line? Either per foot or per rod? Anyone familiar with Ironwood Eagleford Midstream?

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