Can anyone provide production status for the Reeves County Powderhorn RRC Lease No. 58254? It was operated by ConocoPhillips until February, then sold to Scout Energy. There has not been any production since then, only large JIB billings - which leads me to believe that they have performed well maintenance. However, Scout will not respond to inquiries, and they have not filed any Production Reports to the Texas RRC for the past 2 months.
They have filed an Oil Well Status Report with a “Reason for filing: Survey” with “Date Tested” of 5/15/25 indicating the wells (3) produced appx 500 barrels/day. If anyone know what this typically means, please let me know. Thanks!
Please see attached PDF showing Powderhorn lease production for these three wells. Production data thru April 2025 - the latest any production will be noted on Tx RRC site.
No one can “read” Scout Energy’s mind as to what they are doing out here, but based on these production figures plus the gas disposition codes, I can make an educated guess as to what may have happened.
From Oct 2024 thru Feb 2025, you see the gas disposition code of “3” - this means the gas is going to a processing plant to strip out NGL’s from the full gas stream / you are then paid for the NGL’s and the post processing residue gas.
The small gas volume in March 2025 labeled “1” is gas that is used for "lease use’ - e.g. running the pumping units in lieu of using electricity. Note no gas to processing this month - and essentially no production at all / wells definitely shut in.
The April 2025 report showing a small amount of oil production (643 bbls) with only 1144 MCF of gas is key observation as to what may be going on here. The “Gas 10 AR” code means the gas is being flared.
Best guess is that Scout is looking to change the processing plant that is being used to handle all produced gas (and you can’t produce the oil without producing the gas). Possible that the processing contract that was in place has expired and it is being negotiated.
Environmental rules put into place over the past several years highly restrict flaring - and that may be why the wells are essentially shut in (they cannot flare to get the oil production without incurring major financial penalties).
The note about the test date information of “500 BOPD from the three wells” is an indicator of production capacity once they can start sending the gas to a processing plant or pipeline. That 500 BOPD rate works out the around 15,000 BO per month - in line with the oil production shown for Feb 2025.
Scout will get this worked out eventually and get all three wells back on line making the 400-500 BOPD volumes.