I own mineral held by production within the City limits of Levelland TX. I have gotten several proposals from various companies to sell my mineral which are held by production. The production is from OXY Permian secondary recovery units.
Is it possible to just sell minerals rights that is held by production with a depth limitation?
does anyone have any information on wells drilled and or completed depths below the SanAndres carbonate formation. I would appreciate any information to my questions
You can certainly do that (sell just certain depths or wellbores) and it is fairly common. I don't have any knowledge of wells drilled and completed below the San Andres but it's definitely a possibility. Maybe someone else with interests in the county can comment on that.
Ledlie,
Your situation is complex given your comments. But you are also very savvy in this business so I suspect the lease you granted either contains some depth limitations and/or the OXY operated unit is older and has depth litigations as well.
I'm working on a project in Reagan County now involving th sale of rights below HBP zones help for decades so horizontal drilling units can be established. Big operators like OXY are clearing up depth titles by any means possible including buying out lessors so it is worthwhile to know your ownership rights for your own protection.
I don't know your specific area but do know from the many evaluations I done that some awesome production from horizontal wells in formations below the San Andreas are being completed. Know your values with or without an HBP constraint when evaluating offers.
I'm sending you a personal message. Maybe we can compare notes.
Gary L Hutchinson
Minerals Managment
Ledlie,
In addition to what has been posted already, I would recommend checking out the Texas Railroad Commission website. There you can search for well records - the drilling permits and completion reports will list the depths and formations for each well. By searching for your wells or others around them, you can get a feel for the depths of various formations below the San Andres such as the Clearfork, Wolfcamp, etc. They also have a nice GIS (map) viewer should you prefer to access this information that way.
Good luck!
Matt Sands