There's been nothing at the Fayette County courthouse about any Bigham assignment, but there was an interesting document filed by Strike Energy (remember them... part of the Cypress JV) back in December. I've sent it on to someone who can translate it into plain English and will report back if it's anything profound.
I was told the PSA was signed, so they will be taking assignment of it here middle of the month. If they do indeed drill a well off that pad, it could prove up a lot in the area. I've seen some leasehold maps and the amount of leasing that occurred (most importantly, money spent) should bode well for those in the area.. too much capital allocated to leasing to just let it all expire in a few years. I've got high hopes!
Do you know what type of well they will be drilling ?
I was told it would be a Chalk well.
Going back to the Cypress acquisition by Penn, it looks like Penn only took leases from the southern part of the cypress Lavaca county leases up to FM 532 to the north. Cypress was still trying to sell the northern portion of the operation, but looks like no offers before they expired.
that makes sense....wish them all the luck !! We need something good in that area !!!
Yes indeed! Especially if the previously mentioned Geosouthern potential surface location East of 77 near the Vacek loop takes shape, then that could prove up a lot in the are and de-risk it for some of the smaller players.
There is a second pad that Cypress was going to drill east of the existing Bigham well and also a frac pond they built for the first well. I don't know if the pad is actually on the old Bigham property. It makes a lot of sense to drill there with all the assets already there. Also a pipeline on the property.
Google Earth shows those pads. I've done an image of four and had included the Matador pad adjoining the RR tracks SW of Engle but then it didn't show enough detail. Hope it comes out.
2862-TrailofTears.jpg (723 KB)
That's the location I referred to as being utilized by this company. For those exact reasons you mentioned, their infrastructure costs will be lower since they can utilize what's there and in good shape.
I assume we are talking about HBR here. If so, must be why they leased up some of the St. John area acreage this spring. Pay dirt at Bigham could mean the same nearby and all feed into that pipeline. Fingers crossed here!
Yup, they leased all around the Bigham Unit. Fingers majorly crossed!
I wonder if they are going after the Wolters unit as well?
Not that I am aware of. Apparently the surface owner took over the wellbore and I can only presume he's just producing a few barrels a day. A stripper well type set up.
New GeoSouthern permit submitted late last week for a 7,000' lateral. Surface is 1.6 miles North of Fayetteville. So, not the location East of 77 and South of I-10 by the Vacek loop. But, activity nonetheless.
I have heard that HBR lost the funds from SantaRosa to complete some lease deals in our area. Apparently SantaRosa has 3 big projects going on right now, and they took more money than they budgeted...so they cut the money from HBR to lease. HBR aka Heath Rowe is trying to find investors/operators at this time...but no luck so far..... so if you have an unfulfilled lease with HBR does not look good...lots of unpaid lease docs at the lawyers offices it seems.....
Rumor has it that a company whants to lease the City of Moulton is this fact or fiction
I am under the assumption that the oil companies have annual (maybe calendar?) drilling budgets, right? If so, when should we expect to see them announced for 2018?
First you need to get the name/names of the operating company you want to inquire about. then go to their website, and most have a tab for 'presentations" . you should be able to find that info out there. sometimes it will be in their quarterly conference calls.
Companies are going to be in the 2018 planning stages right now. I think it is going to vary by company, but I think you would see something from January-March of next year. All depends on company structure.