THAT’S some GOOD news for a change!
Three span oil and gas are drilling about 7 miles north of Loraine. I don’t know anything except that the permit is for a horizontal well.
Just talked to Penny at Tom Rees’ office, and she said it would be 3 to 8 yrs before anything happens in Mitchell County. Any coments about that timeframe?
The cline is about 2 years behind the Eagleford, etc, there is also a lot of activity in Howard County right now
All I know is that the hotels are waiting for the water and sewer to complete so they can start building, Golden Chick has already broken ground, super 8 now has all permits and plan to start in July, gas plant has all permits, and are gathering workers (approximately 500), there were approximately 20 more permits in Mitchell county submitted for drilling, TXDOT has workers here for the roads, so I would say in the next year things will be happening, also the Stripes travel center and LaQuinta are waiting for the sewer to finish, so I feel anyway that Penny is off on her calculations
Mine in Howard County are drilling like crazy. Soon to be 8 wells in the next 8-10 months. Starting on #2 any day now. Two of Athlon’s horizontals had to be rushed to Glasscock, think they have 5 vertical rigs in Howard with 2 new horizontals coming by the end of the year.
Firewheel has been selling their interests to Devon, Devon from what I am told is not picking up any more leases in Mitchell County, however there are other oil companies, you might ask Devon, and then go on RR Commission, find out who the other oil companies are and talk to them, you might be able to negotiate with them on picking up your leases. $275/ac, is very cheap indeed, I know there is someone going around trying to pick up leases for $300/ac
Hello to everyone, this is Bill.
I have not been on in a while but just have not had much to discuss. As most everyone knows by now, the two wells we have an interest in (Wulfjen 1 and 2) were quite a disappointment to Devon. We are grateful to have some mailbox money each month but the wells will probably never pay out for Devon. In fact, they informed one of our family members that they will be letting all of our acreage go, except what those two wells hold. They have drilled 11 wells in Mitchell County and none of them have been anywhere near expected return on investment. I’m sure not saying Devon is giving up on Mitchell County, only that they are throwing in the towel in our area. Ours is an older lease that they purchased, and they must continue drilling to keep the lease.
They are drilling the Snyder and Sellers wells on the western county line and hopefully will have better luck.
I agree with everyone that the crude pipelines are good news but I must say they are being built to transport oil from Irion, Glasscock, Reagan, and part of Howard counties to the hub at China Grove. Of course they can tie in laterals if needed in the event Mitchell county production increases. Right now, there are plenty of available trucks to haul crude in Mitchell county and most of it goes to China Grove. Currently Devon trucks all of their oil in Mitchell County. After going to China Grove, much of that oil goes on to Cushing Oklahoma.
We are disappointed that Devon is letting our acreage go but hopeful that somebody will figure out how to fracture the cline in our area someday. Devon is really good to work with and they have treated us very well.
The porosity is very good in this part of the Cline, but is just not permeable. In other words there are a lot of dots but they are not connected like the counties to the southwest because the rock here is just so tight.
We are hopeful that the Wolfcamp field in the south-western part of the county will continue to do well. It appears that it is not going to be a large play but there are some decent vertical wells that should provide a pretty good return to the producer. Surprisingly, there is still unleased acreage in that area.
The outlook for Mitchell county is better than it has been in years. The new gas fired power generating plant will sure be an asset. Currently, Devon’s gas from I-20 south, is transported in a gathering system and goes to a gas plant where the product is stripped out, and the lean residue gas is put into a pipeline and used for industry. Not sure who will be supplying lean residue gas to FGE for fuel.
Hopefully somebody will figure out how to crack this shale! So much money has been spent on lease bonuses, seismic, and some drilling, these companies certainly deserve some return on their investments.
Exactly what I’ve heard out of the Midland/Odessa area from the uppers. I hear they will work on it later but are going to focus their drilling where they know they can get it. I’m sure it will happen but it will be down the road. The influx of pipelines is due to the poor infrastructures in the Midland/Big Lake areas. There is just no where to go with the oil as they are producing so much. It’s expected that the pipelines will continue for about 2 years. 3 pipelines are completed or near completion and at least 3 additional lines to be completed.
If it does take 3 to 8 yrs before anything happens in Mitchell County, will the oil companies that have currently leased our lands continue to lease them? Our 3 yr lease is up in 3/2015 and I am curious if they will re lease for the 2 yr term in the original lease, offer less, etc…?
Leases it’s a crap shoot, but there are a lot of different oil companies here that are drilling
I feel the oil companies are tying up and drilling on the large properties so they don’t have to pay the big bonus, there were also 20 permits for SWD wells in Mitchell Co area, and I have more calling me looking for land, it is my understanding they need an SWD with in a 5 mile radius of the drilling for it to be cost effective, they cost approximately 2 - 6 million to put in, I don’t think they would spend the money for nothing
yup, just hearsay, but the new tanks at China Grove already mostly full, waiting for pipeline completions so they can get the oil to destination and not have problems like in North Dakota, thats why so many pipelines trying to get completed…
Just speculation, but why would the oil companies want to make a big news story of how much oil right now, with all the nuts in the world, and not having a way to move all of it right now, (oil), would they want to brag to everyone on how much the wells will be coming in. If they are really that bad, why the big money on the China Grove pipeline to Houston, why the Sunaco pipeline, why the magellon (sorry spelling not great) why all the permits, I mean come on really? a little common sense here
Ok off my soap box…lol, not meaning to offend anyone, but I was born in AK, and I remember all the same hubbub for the AK Pipeline from Pruedo Bay to Valdez…
Our lease with Firewheel expires in Dec 2014…right around the corner. So far, we haven’t recv’d a W9, so thinking Firewheel won’t extend it, but who knows? We leased at $275/acre, so at time and a half, it would still be a bargain, I would think. Any thoughts or opinions on that anyone?
Thank you Toni and Jack, it is hard when you hear so much, I only know of the businesses that have purchased land here, and the hotels coming in and why it is taking so long to build.
I appreciate all of your input
Your perspective is unique to your business Becky, and it is certainly encouraging to hear of those things that are in the works. We probably have some growing pains to work through, and it will be exciting to see what unfolds for our county. We appreciate your posts as well.
Bill
Bill and Toni, I’m sorry that your wells were disappointments. I know that all of us were pulling for gushers, but maybe they learned something. Since our main leases are in the Buford area, I know that they may be an ever bigger challenge for any production. However, I feel confident that Permian and possibly Cline will continue to benefit the local economy.
I finally heard from Firewheel yesterday. They will not be renewing our lease unless something unforeseen happens. Kyle (from Firewheel) said that the thickness (not his word) of the shale in Mitchell County is not as good as in neighboring counties. Does anybody have any comments re that?
Diana, sorry I wished I knew that stuff, however I can tell you that the Devon(High Rollers) SWD well on the I-80(I-20) service road between FM1229 and exit 213, is a big one, 12 tanks, and looks like they are putting in a building so I would guess about a 6 mil project, correct me if Im wrong but I heard the SWD wells are normally in a 5 mile radius of drilling, and this is in Mitchell County, so they must be expecting something, and there is an SWD well that was put in just North of the City by the landfill.
Makes me wonder if that bad, why so much money being spent., and the one big RV park by I-20, was almost empty, and then within a couple of days filled up.