Does anyone have any info about Apache’s well Lee-Mead located Section 36, Tws 3-s, T&P RR, Reeves county? it was supposedly completed several months ago, more than 120 days, but we haven’t received any royalties despite their landman assuring us that the check is on the way. Any information would be greatly appreciated.
Based on info from ENVERUS (who gets their info from the Tx RRC), there are five recent Lee-Meade horizontal wells in this area - all drilled by Apache (APA).
Looks like laterals in 2 or 3 different landing zones.
Early production numbers show these wells to all be gas wells with about 30-40 bbls condensate per MMCF of gas. Plus, some decent NGL volumes (can’t see those numbers on public records).
For all five wells, about 840 million cubic feet of gas and 35,000 BC produced (up to March 2025 / no date yet available for beyond that date).
First production on 3 of the wells was in January while the other two started in March. Based on my experiences, I am betting that APA is still working on getting the Division Orders together to send out for review and signature. This may take up to 6 months or longer depending on the company.
Personally, I wouldn’t put much faith in a landman telling you “…the check is in the mail”. They don’t know the schedule / process that the Division Order specialists are working through to get these complex and detailed documents put together and completed.
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Many thanks Rock Man!! I didn’t mention in the first post post but we have another well, same situation Grant-Jackson. I’m assuming the same applies to it. I certainly agree with your assessment of land men! In your opinion, is there going to be any oil produced from these wells?
Based on these early well results and knowing this area in general, these laterals / landing zones are going to be gas dominant with some condensate and NGL’s.
As you know, gas prices are negative at Waha Hub in Permian, but the value of the gas is in the NGL’s that will be extracted during processing effort.
Shallower landing zones in future wells may be more oil rich.
Thanks Rock Man! This forum is great because of knowledgeable people like you who are willing to help us neophytes!
My pleasure. When you do start getting paid, the first check will be pretty big due to it having several months of production included.
Look closely at the statements that will have the details for each month’s production. Info on pricing, gas, NGL and condensate volumes and any “fees” will be included (or should be).
By fees, I mean deductions that are tied to various production operations (e.g. gathering, processing, compression, transportation, etc.). Unless you have a “cost free” lease, these charges will be passed through to the royalty owners and deducted from your revenues.