Tina, that is a great area to own minerals. I'd be inclined to hold on and not sell. If you're wanting to hedge your bet, you could sell a fraction of what you own, but the price you get probably wouldn't compare with the royalties if a well was drilled. As for prices, you could try to contact the forum sponsors to see what they are witnessing in that area, but again, I'd probably just wait it out. Odds are the purchase offers will go up over time anyways.
http://marketplace.mineralrightsforum.com/ad-category/minerals-management-consultants/
Best of luck!
Shell/SWEPI has been deducting up to 80% from my royalty payments for wet gas from my Gills and Haley 27-28 properties. I understand from the language on the lease (2004) that "lessor...shall bear its proportion of expenses for treating oil to make it marketable as crude" and on gas "...the market value at the mouth of the well". Is there an industry accepted "Revenue Adjustment" (as shell calls it) and if so what is that? Is this high deduction common and is there anything I can do to reduce it?
Texas courts have held that the term "market value at the mouth of the well" means that if the gas is not sold at the wellhead, then the oil company can deduct expenses incurred from the wellhead to the point of sale. Most often gas and liquid products are sold at the tailgate of the plant and the transportation, gathering, processing and sometimes marketing costs are charged back to the value at the wellhead. At today's low gas prices, these costs are a very large percentage of the value. If you have any unleased minerals, then you should negotiate language for defining market value at point of sale to unaffiliated third party and add a clause prohibiting costs from being charged.
Anadarko and SWEPI ended their JV. Anadarko ended up with 70% of the acreage - they announced second quarter results.
http://investors.anadarko.com/2017-07-24-Anadarko-Announces-Second-Quarter-2017-Results
What’s the latest and greatest activity in Loving county on Haley, Gills,
Jones, Hanson, Murphy, and Keene lands?
near Verhalen, Tx
Lawrence, have the checked the Tx RRC site to see recent completions and permits?
Busy dealing with Primexx, Noble, Apache, and COG on my own lands. Haven't checked the permits and completion logs yet. Besides, needed some activity on this forum.
near Verhalen
Lawrence, I am familiar with all the companies you mentioned, with the exception of COG. I like to know as much as possible about all the "players" in our part of the Delaware. What can you tell me about COG that might be useful, should I ever be contacted by them?
As to the names of landowners you mentioned, I don't have an ownership map. If you could provide legal descriptions, even very broad ones, I might be able to provide some info.
For instance, I am aware of two very high volume Wolfcamp wells completed third quarter 2017 in Sec. 25-36, Blk. 76 PSL, with three more currently underway on that acreage.
COG....Conch Oil and Gas. Formed about 20 years ago in San Angelo. They have production in Reeves, Culberson, Pecos, Ward, and Winkler counties...and are looking at drilling wells in Loving county as well.
The Haleys are blood kin to me. I grew up and went to school with the Shifflets, Keenes, Beverly Hanson, Skeet Jones in Wink.
I've been in this man's oilfield in this area all my life since I came home from the Air Force in 1972.
near Verhalen
Lawrence, thanks for the information on Conch Oil & Gas. Best, Ken
It's CONCHO Oil and Gas. I failed to proofread before I hit send. Sorry. near Verhalen
Got it! Concho Oil & Gas. Best, Ken
The Gills, Haleys, Lineberry, Walton, Keltons are north of Hwy 302. South of 302 are the Roarks, Andersons, Mitchells (Ann Haley married Billy Mitchell), Keenes, Wheats, etc. I know them all....but without a map, I can't remember the blocks and section numbers.
near Verhalen
BTW, Anadarko is all over the Haleys, but Oxy and Cimarex are moving
into Loving county as well. Sun Oil Company (Sunoco) is drilling out there as well and moving west of the Pecos in Reeves and Culberson counties as well.
near Verhalen
Conoco/Phillips is going to drill some wells in Reeves County...in the permitting process now. I would not be surprised to see them move into Loving County and into Lea County, NM.
near Verhalen
Ol' Lawrence,
Thanks for for bring some energy (pun intended) to the Loving County Forum. Any information on what Matador Production Resources is doing? I read their investor report a few days ago, but they were not very specific about our mineral acres--specifically C24 Sections 5,6,7 up near the New Mexico state line. Matador had said in past conference calls that they were going to drill in that area in 2017, but we haven't heard anything specific lately. This is an area where there hasn't been a lot of activity historically.
John Michael Moran
Matador has permitted a 2 lateral horizontal in Sec. 84, Blk 33 with a terminal point under the Pecos River. Kerr 201H and Kerr 202H, 6500' laterals. Near Mentone.
Richard Chapman
Interesting they would end laterals UNDER the Pecos river…because it is an
earthquake fault that breaks the anticlines running east/west across that area. That causes anticline ends pinch outs on both sides of the river.
Collection of hydrocarbons and gas is enhanced in those pinch outs, so there will be excellent wells in that area for production of both oil and
high liquids gas.
near Verhalen
Lawrence, this fault system works well to create better traps and O&G accumulations for conventional reservoirs, but they really shouldn't have much if any impact on well performance with respect to horizontal wells drilled in unconventional "shales". I figure the operators have some good subsurface and seismic control to "see" the faults at depth and stop the laterals before hitting this fault system (which - if they crossed the fault system - would take them out of their horizontal target zone)