Reeves county questions

I know very little about oil and gas.

We own a small small interest in Big Chief lease property in the southern Delaware. It’s partially Block 1, sec 173-175. I recently figured out it’s been a big producing property and includes about 10 sections and 32 wells using mineral answers website. I believe it was first drilled in 2012.

It looks like there’s roughly 3-4 wells per section at this point. You can see the production jumps up when wells are added and then it tails off. For this area of Reeves county, is 3-4 wells per section about the max or will it likely add more? If it likely adds more wells, about how many wells per section is normal for that area?

It appears these wells have been accessing the Wolfcamp formation so far. Is it likely the oil company will use these same wells to access different layers (different part of Wolf Camp? Bone Springs?) when the production slows down? Does this part of the southern Delaware have other layers to access?

Is it likely this property will play out soon since it’s been producing for over 10 years now? I know no one has a crystal ball, but I’m just trying to get some sort of idea what to expect over the next 5-10 years.

Any input you might have on this would be appreciated.

This is a big crystal ball question. Factors include commodity prices, developing technology, what formations are successful in your area, who the operator is (and in today’s picture who they are being bought by) and how that operator views your asset and their appetite for new development. For wolfcamp, you can expect MANY more years than 10, but you have probably already seen 50-75% of the revenues that you will see from those wells because of the decline curve. Yes, there are more formations than the wolfcamp in Reeves, but it depends on your lease if the operator has rights to develop the other horizons. If they have to go and get new leases, that adds time and expense, which is a deterrent to development. You can get a better picture of ‘what to expect’ by watching the permitting in your area and by your operator. You are in the right place to learn. Good luck!

thanks for the info. lots of stuff to consider.