Here is a production map of some of Apache’s results nextdoor to you. Alpine High is somewhat of an enigma. Impressive find in a day in age when most resource plays are thought to be discovered. So far, it has been more corporate flag-waving then commercial success. Your land offsets Apache’s Blackhawk and Chinook wells. Hard to know for sure but I believe they are Woodford tests. The terms “Delaware” and “Permian” refer to periods in Paleozoic Era- Permian age being around 270 Million years old. The woodford is part of the Devonian period which is closer to 400 million years old. This may be semantics to some but it is a important distinction. The well on the corner right of the map is a Wolfcamp test by BHP in 2011. The Permian age rocks do not seem to work in this area. Apache is proving up the older Mississippian/Devonian play but in no way can it be equivacated with the Wolfcamp in Eastern Reeves.
Your land is in a shallower, liquids rich part of the Woodford but Apache’s offsets (so far) will probably never pay out. Product realizations are not that great due to lack of infrastructure and takeaway from the region. Pricing (in a perfect world) would be something like $60 per barrel of condensate. $2.50 NG (*.75 gas shrinkage) 100 bpm NGL cut at 40% of Nymex. Gas uplift of around $1.80. So maybe like 15:1 conversion rate at $60 oil. I would be surprised if they are getting anywhere close to those realizations right now though.
From what I can tell, the dry gas Woodford wells in North Apache high are the only decent results so far (and maybe one or two of the Mont Blanc wells.) Apache has no relation to BP other than that they bought some Permian assets from Amoco in the 90’s. Amoco later merged with BP. Apache is going to struggle to continue to fund Alpine High (IMHO.) It will be a perpetual cash drain on the company and is stealing capital from better performing assets. That said, it is a young play and things can change. They seem committed to it. They rolled up all the money they spent on trunk lines and fractionation/gas processing and put it into a new public vehicle called Altus Midstream. So if the stock performs well, it will be a nifty way for Apache to pay themselves back for billions in out of pocket infrastructure cost. I’m not buying any shares. Reeves.pdf (1.6 MB)
They are trying again just south of you with the Fox State wells so maybe they can make it work. I would expect some interest from competitors at some point but I doubt the bonus offers would be lights out. If you can get $1,000 p/a and 25% for 3 year- that would be pretty darn good.