Question on Finding Block Locations

Hello

We have a small ownership stake through an inheritance. Most of the land seems to be in Block C-16? We did sign a lease in the fall, however, when reading the different discussions, I never see anyone talk about this block. Is there a map I can go to that shows where the different blocks are located? Also, does anyone know if there is any activity in 16?

Thanks!

Fred

Hi Fred -

What County? And do you know which Sections or Surveys your interests are in? Blocks can be dozens and dozens and dozens of square miles in size.

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

In Reeves. Surveys listed are 288, 22,23, 20, 12, 17, and 14.

Fred -

Attached are three out of four files I am going to be sending you.

Item 01. is a set of maps and tables of producing Wells in and around Block C16, PSL, Reeves Co, Tx.

In case you don't know, Section C16 is in the very Southeastern Corner of Reeves County and may be included in the new Alpine High Area (Google "Alpine High Apache" and your computer will start to smoke).

There have only been a handful of Wells drilled in Block C16, including three that are located in Surveys / Sections you listed. [NOTE: I COULD NOT LOCATE A SURVEY OR SECTION 288, NOR AN ABSTRACT NO. 288 IN BLOCK C16]

Item 02. is information on the COG Operating - Gunnison State Unit No. 2506H Well. That one appears to be a fairly nice well, completed 3/26/2015 and testing at 297 Barrels of Oil Per Day (BOPD) and 357 MCF of Gas Per Day (MCFD). In 12/2016, it was reported to producing 163.4 BOPD and 260 MCFD, so it appears to be holding up pretty well. By 12/2016 it had produced a total of 205,983 Barrels of Oil and 305,846 MCF of Gas.

Please review the Mineral Appraisal Roll at the end of the packet. Do any of the names in the list ring a bell? There is only one Duncan listed: Margaret Aline Hoefs Dunken.

Item 03. is on the COG Operating - Graef C 16-17 No. 1. It was completed 4/30/2009 by Chesapeake, testing at 21 BOPD and 58 MCFD. It had a few so-so years but by 12/2016 is now down to 0.1 BOPD and 0.5 MCFD.

There is a Beth Ann Duncan listed in it's Mineral Appraisal Roll.

Through 12/2016 it has produced a total of 9,693 BO and 28,006 MCF, but Chesapeake operated it until 2013 when Shell took it over and COG only began operating it in 11/2014.

If you are due any royalties from it, you may be able to recover a few dollars from COG and maybe even Shell. But unless Chesapeake passed any royalties in suspense on to Shell and Shell to COG, which would from my experience be highly unlikely, you are probably screwed as to anything other than what COG owes you.

Item 04. (to follow) is regarding COG Operating's Sharp Knife No. 1705. It was completed 8/1/2013 and tested at 6.0 BOPD and 36.0 MCFD. The last reported production from it was 9/2014, by which time it was down to 0.0 BOPD and 4.8 MCFD. It produced a total of 48 Barrels of Oil and 1,081 MCF of Gas.

It appears to have never produced enough for any of the Interest Owners (not even COG) to have approached the minimum taxation threshold (typically $400 annually), so no Mineral Appraisal was ever created for it.

If COG owes you any money from it, it may cost more for them to prepare the check than what you would receive.

There are a few Wells to the North of Block C16, but as you will see on the Well Tables I enclosed with the maps, none of the closer in ones were very impressive.

Just hope (pray) that Apache can prove the area up over the next few years!

Hope this helps -

Charles

515-01.MAPSANDAREAWELLS.pdf (266 KB) 516-03.4238932567COGOPERGRAEFC1617.pdf (2.22 MB) 517-02.4238934566COGOPERGUNNISONSTATEUNITNO.2506H.pdf (1.83 MB)

Item 04.

514-04.4238933725COGOPERSHARPKNIFENO.1705.pdf (793 KB)

Thank you, Sir!

The lease was offered right after the Alpine High story came out, though it doesn't appear to have ever been a good producing area. Let's hope!

Fred